Re: Prosecution
As per Question 22 of latest circular, in case, only notice for initiation of prosecution has been issued, Assessee can opt for VsV Scheme. Issue is regarding the amount of tax to be paid in this scenario?
Yes. Where only notice for initiation of prosecution has been issued without prosecution being instituted, the assessee is eligible to file declaration under Vivad se Vishwas.
Actually as per DTVV Act, 2020 no declaration can be filed under the Direct Tax Vivad se Vishwas Act, 2020 in respect of tax arrear relating to an assessment year in respect of which prosecution has been instituted on or before the date of filing of declaration.
Further, No declaration can be made by any person in respect of whom prosecution has been initiated by an Income-tax authority for any offence punishable under the provisions of the Indian Penal Code or for the purpose of enforcement of any civil liability under any law for the time being in force, on or before the filing of the declaration or such person has been convicted of any such offence consequent to the prosecution initiated by an Income-tax authority.
It is in this connection the above circular clarifies that declaration can be filed under DTVV if only notice for initiation of prosecution has been issued.
So this makes one eligible for declaration. Amount to be paid will be as per assessment order of the relevant assessment order of the assessment year in question.
CA. Manoj Gupta
Jodhpur
9828510543