Re: Prosecution Complaint filed before DTVsV but withdrawn later by the I.T.Department-Whether eligible for DTVsV
In a case where prosecution proceedings under any of the provisions of the Income Tax Act has been instituted against the assessee immediately after framing of assessment against him by filing a complaint in the Competent Court though against the Spirit of Circular No.24/2019 Dtd. 09.09.2019 issued by CBDT since the penalty has not been confirmed by the ITAT and simultaneously, the Department withdraws the Complaint filed before the Competent Court, Whether such withdrawal from the Court would tantamount to Non-institution of Prosecution Proceedings and the Benefit of the DTVsV could be availed by the assessee??
Yes, the same in our view should amount to non-institution of prosecution proceedings and the assessee should be eligible under VSVA. In Tigrania Steel Corporation v. CIT [2017] 291 CTR 496 (Bom)(HC) has held that , the assessee had been discharged by Criminal Court before it filed its application under Kar VivadSamadhan Scheme, he was entitled to avail benefit of scheme.
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