The Central Board of Direct Taxes (CBDT) issued the clarifications on provisions of the Direct Tax Vivad se Vishwas Act, 2020.
The Board has received several representations seeking further clarity with regard to the classification of a case as a ‘search case’ for the purposes of Vivad se Vishwas. The matter has been examined.
In order to remove any uncertainty in this regard, and in exercise of powers under section 10 and II of Vivad se Vishwas, Board has clarified that a ‘search case’ means an assessment or reassessment made under sections 143(3)/ 144/ 147/ 153A/ 153C/ 158BC of the Income-tax Act in the case of a person referred to in section 153A or section 153C or section 158BC or section 158BD of the Income-tax Act on the basis of search initiated under section 132, or requisition made under section 132A of the Income-tax Act. The FAQ no. 70 of circular 21/2020 stands modified to his extent.
FAQ no.70 of circular 21/2020 clarified eligibility for search cases under Vivad se Vishwas. It was clarified that if the assessment order has been framed in the case of a taxpayer under section 143(3) or Section 144 of the Income-Tax Act based on the search executed in some other taxpayer’s case, it is to be considered as a ‘search case’ under Vivad se Vishwas.
Sections 10 and 11 of Vivad se Vishwas empower the Central Government or Central Board of Direct Taxes to issue directions or orders in public interest or to remove difficulties. In order to facilitate the taxpayers, clarifications under the said sections in form of answer to FAQs were issued vide circular no. 9/2020 dated 22nd April, 21 2020 and a circular no 21/2020 dated 4th December, 2020.
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