Section 220 (2A) provides for reduction or waiver of interest amount by various authorities. Section 273A provides for reduction or waiver of penalty amount, stay or compounding of recovery proceedings of penalty amount, by Principal Commissioner or Commissioner. Also, Section 273AA provides for grant of immunity from penalty by Principal Commissioner or Commissioner under certain circumstances.
All the above mentioned grants are available on an application made by an assessee.
Under the above existing provisions, no time limit has been provided regarding the passing of orders by the authorities and further, an opportunity of being heard is not provided to the assessee in case of rejection of application
It is proposed to amend Section 220, Section 273A and Section 273AA to provide that an order accepting or rejecting the application of assessee, by the prescribed authorities, shall be passed within 12 months from the end of the month in which the application is received. Further, it is proposed that no order rejecting the application shall be passed without giving an opportunity of being heard.
It shall be noted that in respect of applications pending as on 01.06.2016, the order under relevant sections shall be passed on or before 31.05.2017.
The amendment is proposed to reflect the transparency in tax system.
The above amendments shall take effect from 01.06.2016