Re: Immunity from other laws

Whether by virtue of provisions of clause 5(3) of the VSV Bill, once application made is accepted and taxes paid thereon, whether the Assessee would be eligible for immunity from other laws (Benami, etc.)

As we understand, none of the mater(s) covered under an order of section 5 of VSVA shall be reopened in any other proceeding under the Income-tax Act or under any other law for the time being in force or under any agreement, whether for protection of investment or otherwise, entered into by India with any other country or territory outside India. It can be interpreted that, matters which aren’t covered under the said order can be reopened. It would be precarious to assume a blanket clearance for a particular assessment year.  Once certificate is issued it is binding on the revenue ,  hence none of the mater(s) covered under an order of section 5 of VSVA shall be reopened.    In Killick Nixon Ltd. v. Dy. CIT (2002) 258 ITR 627 / 125 Taxman1055/(2003)172Taxation373 / 178 CTR 387 (SC) dealing with S.87 of the Kar Vivad Samadan Scheme , the Honourable Supreme Court held that   ,upon declaration being made tax arrears being determined, paid and certificate issued under KVSS, there is no jurisdiction for the Assessing Officer to reopen the assessment by a notice under section 148 except where case falls under the proviso (2) of sub-section (1) of section 90 of the scheme and it is found that any particular material furnished in the declaration is found to be false.  The  assessee will be eligible for immunity from other laws. 

 

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