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Compounding Of Offenses: CBDT Circular Extends Time For Filing Applications

The CBDT has vide Circular No. 1/2020 dated 03.01.2020 extended the time limit for filing of applications for compounding of offenses under the Income-tax Act, 1961. The extension has been granted with a view to give a final opportunity to taxpayers and to reduce the pendency of existing prosecution cases before the courts.

Circular No. 1/2020
F.No.285/08/2014-IT(Inv. V) /63’l
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
Room No. 513, 5th Floor, C-Block,
Dr. Shyama Prasad Mukherjee Civic Centre,
Minto Road, New Delhi -110002.
Dated: 03.01.2020
Subject: Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of Timeline-Reg.
Reference is invited to the Circular No. 25/2019 F. No. 285/08 /2014-IT(Inv. V)/350dated 09.09.2019, whereby, the condition for filing of applications for compounding of
offences under the Income-tax Act, 1961 (the Act) , to be filed within 12 months from filing of
complaint in the court, was relaxed by CBOT till 31.12.2019, as a one-time measure.
2. The CBOT has received references from the field formation, including requests
made by the [CAl chapters, wherein, it has been brought to the notice of CBOT that the
taxpayers could not avail the benefit of the one-time relaxation window due to genuine
3. With a view to give a final opportunity to such taxpayers, and to reduce the pendency
of existing prosecution cases before the courts, the CBOT in exercise of powers u/s 119 of the
Act, read with explanation below sub-section (3) of section 279 of the Act , issues this
Circular, whereby para 4. 1 i) of the Circular No. 25/20 [9 F. No. 285/08 /20 [4-[T(Inv. V)/350
dated 09.09 .2019 stands modified as under:
“Such application shall be filed before the Competent Authority i.e. the Pr.
CCITICCITIPr. DGITIDGIT concerned, all or before 31.01.2020. ”
4. It is clarified that all other prescriptions/conditions of the Circular No. 25/20 [9 shall
remain unchanged and shall apply to all such appli cations.

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