New Delhi: Industry chamber CII said on Sunday that the upcoming budget should provide for an effective and smooth taxation dispute settlement mechanism towards minimising disputes and reducing unnecessary litigation.
"A simple, predictable and litigation free tax environment involving quick and efficient resolution of disputes is crucial for improving tax compliance and releasing resources, hitherto locked up in disputed tax demand, for further economic activity," a Confederation of Indian Industry statement said here.
"Government has no doubt taken commendable initiatives and made fair provisions to minimise and reduce unnecessary litigation. However, much more needs to be done to further strengthen the dispute resolution mechanism in the area of both direct and indirect taxes," CII Director General Chandrajit Banerjee said.
CII urged the government to amend the existing constitution of the Dspute Resolution Panel in order to include at least one retired member of the Income Tax Appellate Tribunal, "so that the panel can make assessments or pass orders independent of the apprehensions regarding tax consequences."
With IANS Inputs
