CIRCULAR NO. 1/2020 [ F. NO. 285/08/2014/-IT(INV. V)/639] DATED 3-1-2020

SECTION 276C, READ WITH SECTIONS 276B, 276BB, 276CC OF THE INCOME-TAX ACT, 1961 – OFFENCES AND PROSECUTION – WILFUL ATTEMPT TO EVADE TAX, ETC. – COMPOUNDING OF OFFENCES – ONE TIME MEASURE – EXTENSION OF TIME LIMIT

CIRCULAR NO. 1/2020 [ F. NO. 285/08/2014/-IT(INV. V)/639] DATED 3-1-2020

Reference is invited to the Circular No. 25/2019 F. No. 285/08/2014-IT(Inv. V)/350 dated 9.9.2019, whereby, the condition for filing of applications for compounding of offences under the Income-tax Act, 1961 (the Act), to be tiled within 12 months from filing of complaint in the court, was relaxed by CBDT till 31.12.2019 as a one-time measure.

  1. The CBDT has received references from the field formation, including requests made by the 1CAI chapters, wherein, it has been brought to the notice of CBDT that the taxpayers could not avail the benefit of the one-time relaxation window due to genuine hardships.
  2. With a view to give a final opportunity to such taxpayers, and to reduce the pendency of existing prosecution cases before the courts, the CBDT in exercise of powers u/s 119 of the Act, read with explanation below sub-section (3) of section 279 of the Act, issues this Circular, whereby para 4.1 (i) of the Circular No. 25/2019 F. No. 285/08/2014-IT(Inv. V)/350 dated 9.9.2019 stands modified as under:

“Such application .shall be filed before the Competent Authority i.e. the Pr. CCIT/CCIT/Pr. DGIT/DGIT concerned, on or before 31.1.2020”

  1. It is clarified that all other prescriptions/conditions of the Circular No. 25/2019 shall remain unchanged and shall apply to all such applications.
  2. Hind version shall follow.