Greetings!
We are pleased to send you a copy of THE NEWSFLASH on recent updates from Litigation perspective

  • Prosecution procedure streamlined
  • Compounding conditions relaxed
  • E-assessment scheme launched

Prosecution procedure streamlined

CBDT has issued guidelines for streamlining the prosecution procedure for identifying and examining the cases for initiating prosecution for offences under Income-Tax Act 1961 (‘the Act’).

The Circular provides for two-layer procedure in the following categories of offences:

Failure to pay TDS / TCS to the credit of the Government – Section 276B and 276BB of the Act
Wilful attempt to evade tax etc. – Section 276C (1) of the Act
Failure to furnish returns of income – Section 276CC of the Act

Compounding conditions relaxed

CBDT, in relation to past offences, has relaxed the condition of filing of compounding application within 12 months in a case where compounding application has to be filled before the Competent Authority on or before 31 December 2019.

The Circular allows filing of compounding application with relaxed time limit in all cases where:

Prosecution proceedings are pending before any court of law for more than 12 months; or
Compounding application filed was withdrawn by the applicant solely for the reason that such application was filed beyond 12 months; or
There was rejection of compounding application for an offence on account of technical reasons.

However, this relaxation shall not be available in respect of offences which are not compoundable under the Current Guidelines.

E-assessment scheme

In order to bring transparency in the assessment procedures and provide a hassle-free tax environment to the taxpayers, the government has notified the e-assessment scheme, 2019, which shall come into force

from September 12, 2019. The proposed scheme encompasses multiple nodal units such as national e-assessment centres along with regional centres, assessment units, verification unit, technical unit and review

units. All the communications among the nodal units shall be carried out through the national e-assessment Centre via electronic mode only. Electronic records shall be authenticated by the originator by affixing

his/her digital signature and also encompass the use of electronic authentication technique. Moreover, the government has emphasized that a person shall not be required to be personally present in relation to

any proceeding under this scheme

It shall be pertinent to note that the Centre may at any point of assessment transfer the case to the Assessing Officer having jurisdiction over such case.

Hope you will find it useful and informative.

NEWSFLASH on recent updates from Litigation perspective

NEWSFLASH – Litigation Update