Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 17^th September, 2022

PRESS RELEASE

CBDT issues Revised Guidelines for compounding of offences under the Income-tax Act, 1961

In conformity with the Government's policy of facilitating Ease of Doing Business and decriminalisation of offences, CBDT has taken steps in this direction and issued revised Guidelines for Compounding of offences under the Income-tax Act, 1961(the 'Act') dated 16.09.2022 with reference to various offences covered under the prosecution provisions of the Act.

Some of the major changes made for the benefit of taxpayers include making offence punishable under Section 276 of the Act as compoundable. Further, the scope of eligibility for compounding of cases has been relaxed whereby case of an applicant who has been convicted with imprisonment for less than 2 years being previously non-compoundable, has now been made compoundable.The discretion available with the competent authority has also been suitably restricted.

The time limit for acceptance of compounding applications has been relaxed from the earlier limit of 24 months to 36 months now, from the date of filing of complaint. Procedural complexities have also been reduced/simplified.

Specific upper limits have been introduced for the compounding fee covering defaults across several provisions of the Act. Additional compounding charges in the nature of penal interest @ 2% per month up to 3 months and 3% per month beyond 3 months have been reduced to 1% and 2% respectively.

The revised Guidelines for Compounding of offences dated 16.09.2022 are available on http://www.incometaxindia.gov.in.

(SurabhiAhluwalia)

Pr. Commissioner of Income Tax(OSD)

(Media & Technical Policy)

Official Spokesperson, CBDT

 

 

Click here to read and download CBDT Circular No. 18/2022 dt. Sep 13, 2022

 

HC Single Judge Bench dismisses writ petition, holds that there is no procedural irregularity or violation of any principles of natural justice or the impugned order and notice are not contrary to any provision of law; Assessee challenged the order dated Jul 30, 2022 u/s 148A(d) and subsequent notice u/s 148 for AY 2014-15

Click here to read and download HC Order

HC Single Judge Bench quashes the Sec.148A(d) order as time-barred

Click here to read and download HC Order

 

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, 6th August, 2022

PRESS RELEASE

Income Tax Department conducts searches in Tamil Nadu

The Income Tax Department carried out search and seizure operations on 02.08.2022 in the cases of certain producers, distributors, and financiers associated with the film Industry. The search operations were conducted at almost 40 premises located in Chennai, Madurai, Coimbatore and Vellore.

During the course of the search operations, several incriminating documents and digital evidence etc., relating to unaccounted cash transactions and investments have been seized. Secret and hidden premises have also been unearthed during the search. The searches in the cases of film financiers have revealed documents like promissory notes etc., relating to unaccounted cash loans, which were advanced to various film production houses and others. In the cases of film production houses, evidences reveal tax evasion, as the actual amounts realized from the release of the films are much more than the amounts shown in the regular books of account. The unaccounted income so generated by them is deployed for undisclosed investments as well as for various undisclosed payments.

Similarly, evidences seized in the cases of film distributors, indicate collection of unaccounted cash from the theatres. As per the evidences, the distributors have formed syndicates and have systematically suppressed the theatre collections, resulting in the suppression of actual income.

So far, the search operation has resulted in detection of undisclosed income exceeding Rs. 200 crore. Undisclosed cash of Rs.26 crore and unaccounted gold jewellery exceeding Rs. 3 crore have been seized.

Further investigations are in progress.

(Surabhi Ahluwalia)

Pr. Commissioner of Income Tax(OSD)
(Media & Technical Policy)
Official Spokesperson, CBDT