In a major departure from the past practice, the government has allowed taxpayers to file settlement application for agreed assessment by inserting a new section 122D in the Income Tax Ordinance, 2001 through Finance Act 2020.
Recently FBR has instructed its field formations to establish oversight committees as envisaged in the law. Taxpayers whose cases have been selected in audit and have been confronted through a show-cause may avail this opportunity by applying online to the settlement committee, conveying this intention to go for agreed assessment and tax payable thereon.
The Committee will decide the case within 30 days of the filing of the application by the taxpayer. The government is expecting that a large number of taxpayers under scrutiny will avail this opportunity.
This will decrease the pressure on available FBR resources which are being spent on litigation and will provide instant relief to the taxpayers.