Direct Tax Vivad se Vishwas Bill, 2020 to increase its scope to cover litigation pending in various debt recovery tribunals (DRTs).
The aim of reducing litigation related to direct taxes.
It was proposed to cover tax disputes pending at the level of commissioner (appeals), Income Tax Appellate Tribunals, high courts and the Supreme Court.
From Prelims Point of View:
Debt Recovery Tribunals:
Debt Recovery Tribunals were established to facilitate the debt recovery involving banks and other financial institutions with their customers.
DRTs were set up after the passing of Recovery of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993.
At present, there are 33 DRTs and 5 DRATs functioning at various parts of the country.
In 2014, the government has created six new DRTs to speed up loan related dispute settlement.
Compared to the ordinary court procedures, DRTs were able to handle large number of cases with low delay during the initial phases.
Though the DRTs have made impact on recovery front, several issues related to their performance in the background of rising volume of NPAs have appeared in later period.
