Re: PROSECUTION
NO CASE FILED IN COURT OR NOTICE FROM COURT -BUT ON RECORD OF ASSESSEE ONLY LETTER FROM CIT FOR PROSECUTION –WHETHER HE CANOPT FOR VSV
Yes. He can opt for VSVA. This has been clarified under Q. 22 vide CBDT Circular 7/2020 dated March 4, 2020 and also Circular No 9 of 2020 dt 22-04- 2020 also once again clarified that the assessee will be eligible to avail the benefit of the Scheme .
Eligible for VSVS. No Prosecution is instituted as on 31.01.2020.
The relevant provisions of Section 9(a)(ii) ( which provides for ineligibility criteria) read as under:
(ii) relating to an assessment year in respect of which prosecution has been instituted on or before the date of filing of declaration;
As understood, in Your case a show cause notice has been issued by the CIT giving an opportunity to explain as to why no prosecution shall be initiated.
This query is replied by the CBDT in FAQ issued dated 04/03/2020. Kindly refer question number 22. Assessee has an option to compound the offence and opt for Vivad se Vishwas.