Re: show cause notice for prosecution

The assesse has been issued a show cause notice u/s279(1) of the income tax act asking for an explanation as to why prosecution u/s278B should not be initiated on account of failure to deposit TDs on time .
Section 9 of the Scheme of the VSV act provides for certain exceptions wherein the provisions of the Scheme would not apply. – One of them being in
Cases in which prosecution under the Act has been instituted on or before the date of declaration.
Since the Prosecution has still not been instituted the assesse is trying to opt for relief under the VSV scheme but is unable to do so as the drop down in the form is not facilitating the exercise of this option. Please advice .

Yes, your understanding is correct. The assessee is eligible to avail the benefit under VSVA, the same is also clarified by CBDT Circular 9 of 2020 dt 22-04 2020.  Q. no 22   Ans . 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. However, where the prosecution has been instituted with respect to an assessment year, the assessee is not eligible to file declaration for that assessment year under Vivad se Vishwas, unless the prosecution is compounded before filing the declaration. 

Regarding any shortcomings on the portal it is advisable to approach your concerned Designated Authority with your issue.  

 

---