The e-Dispute Resolution Scheme (‘e-DRS’) is a kind of limited time quick resolution alternate remedy for filing appeal with the Dispute Resolution Committee (DRC/ Committee) instead of Commissioner Appeals against various assessment orders. Even in a case where Appeal is already filed before Commissioner Appeals, then also benefit of e-DRS can be taken.
Monetary Thresholds for opting e-DRS:
This scheme is available only for those persons whose Returned Income in ITR is up to INR 50 lakhs and the variations (i.e. addition of incomes/ disallowance of expenses) made by the Assessing Officer is up to INR 10 lakhs in income of that year.
Eligible Orders that can be contested in e-DRS:
– the draft assessment order;
– an intimation under Section 143(1);
– an order of assessment or reassessment;
– an order made u/s 154 having the effect of enhancing the assessment or reducing the loss.
– intimation u/ 200A(1) or 206CB(1),
– an order made u/s 201 or u/s 206C(6A)
Ineligible cases:
Order based on search/surveys or information received under an agreement referred to under section 90 or 90A of the Act.
Other Powers of DRC:
Powers to provide immunity from prosecution punishable and penalty imposable in the case.
Stages of e-DRS :
Stage 1: Making an Application
- An application shall be filed electronically by emailalong with proof of payment of tax on the returned income, if available and accompanied by Appeal Fee paid challan of INR 1,000 within 30 days from the date of passing of specified order. In cases, where the order is already pending before the CIT(A), then by 30 September 2024
Stage 2: Screening of Application
- The DRC shall examine the application and where it considers that the application should be rejected, shall serve an opportunity to show cause for not rejecting. The DRC shall, on a request, provide an opportunity of being heard through Video Conferencing.
- Where application is accepted,the Applicant is required to submit proof of withdrawal of commissioner appeal/ other DRP, if any, within 30days of receipt of communication of admission.
- Where the application has not been admitted, the assessee may file an appeal to CIT(A)and the period taken by the Committee shall be excluded from the period available to file such appeal.
Stage 3: Undertaking the Proceedings:
- The Committee may call for records from the income-tax authorities and further examine the issues covered in the Application. The Committee may seek a report from the assessing officer and/or call for further information from the assessee or any other person by sending an email to his registered email address.
- The DRC may make assessee-favoured modifications to the variations of specified order along with waiver of penalty/ immunity from prosecution; may not make any modifications to the specified order but may provide waiver of penalty/ immunity from prosecution.
- The DRC has to pass the order within 6 months from the end of the month in which application got admitted. Such order shall be served upon the assessee and also the Assessing Officer for giving effect to the same, if so required.
Other Points:
In case of those assesses, who are required to file their ITRs under a Digital Signature, they shall communicate affixing their/ other person’s digital signature.
