"We have 3 lakh appeals pending and the amount involved is Rs 5.5 lakh crore wherein people's fate are hanging. In order to remove all these disputes, we have come out with a resolution scheme and we do hope in many cases the assessee will prefer to settle the case," he said while addressing the CII National Council meeting.
Finance Minister Arun Jaitley in the Union Budget has proposed a 'dispute resolution mechanism' under which a taxpayer who has an appeal pending before the Commissioner (Appeals) can settle his case by paying the disputed tax and interest up to the date of assessment.
Adhia said the reason for a tax payer to go into appeal is not the assessment amount, but the 300 per cent penalty and he wants to contest the penalty.
"I'm sure this scheme will work. A lot of people will come forward to take benefit of this," he said.
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As regards the Budget proposal to lower corporate tax for new manufacturing units to 25 per cent, Adhia said the step would promote Make In India.
all, Adhia said, "The bill was Rs 50,000 crore for 1 per cent reduction. We had to take a call. The gain from exemption removal only comes from next year not from this year."
Some of the exemptions will be phased out from April 1, 2017 and there also whosoever has already come under the ambit before that date, will continue to enjoy exemption for 10 or 15 years as per the scheme, he said.
"So the final benefit of phase out will come upto 2033. It will not come in single year. So, our calculation is in the year 2017-18 the benefit out of phase out will be about Rs 3,000 crore only in the first year," he said.