Institutional Mechanism for Forming Departmental View on Contentious Legal Issues - CBDT Initiative
CBDT observes that a large part of litigation in the Direct Taxes matters involves interpretation of legal provisions. Lack of desired clarity on a contentious legal issue, amongst the officers of the department, sometimes leads to inconsistent approach on the same issue giving rise to further litigation. With a view to provide clarity on contentious legal issues, promote consistency of approach on a given issue and reduce litigation, it has been decided to set up an institutional mechanism to formulate 'Departmental View' on contentious legal issues:
There will be a Regional Technical Committee (RTC) and a Central Technical Committee (CTC) which will formulate a "Departmental view" on any contentious issue and if approved by the Board, the 'Departmental View' will be issued as Circular u/s 119 of the IT Act by ITJ division of the CBDT for compliance by all concerned.
Where any High Court decides an issue contrary to the 'Departmental View', the 'Departmental View' thereon shall not be operative in the area falling in the jurisdiction of the relevant High Court. However, the CCIT concerned should immediately bring the judgement to the notice of the CTC. The CTC shall examine the said judgement on priority to decide as to whether filing of SLP to Supreme Court will be adequate response for the time being or some legislative amendment is called for.
This is a right step worthy of emulation by CBEC.
CBDT F. No. 279/M- 61 /2012-ITJ, Dated: August 28, 2012