Vision 2020 - Improved Litigation Management
DELAY in resolution of tax disputes adversely affects voluntary compliance. Protracted litigation results in wasteful expenditure of time and resources for both taxpayer and the Department. A systemic approach to resolve disputes would be a win-win situation both for the ITD and the taxpayers. ITD intends to put in place a mechanism for putting an end of unproductive litigation.
ITD (Income Tax Department) intends to
1. expand the scope of Dispute Resolution Panel currently used for transfer pricing and international tax issues.
2. improve the administrative machinery of the Appellate Commissioners by working out new work norms and introducing new mechanism of “Appeal Registry” for redistribution of work.
3. develop consistent views across the Department on disputes arising out of the Income Tax Act through knowledge management. “Let us Share – A compilation of Best Practices and Orders”, an annual compilation for both ITD personnel and taxpayers, is expected to be expanded further and evolve into an online real time knowledge sharing mechanism.
4. issue revenue ruling on important legal issues having wider implications and making the Departmental stand known to the taxpayers on such issues for reducing litigation.
5. complete the work of departmental judicial referencing system on a fast track for having a database of legal issues which are being agitated before various higher appellate authorities.
From VISION 2020 Draft.