The Central Board of Direct Taxes (CBDT) has issued the clarifications on provisions of the Direct Tax Vivad se Vishwas Act, 2020 vide Circular No. 4/2021.
Sections 10 and 11 of Vivad se Vishwas Act, 2020 empower the Central Government / Central Board of Direct Taxes to issue directions or orders in public interest or to remove difficulties.
Earlier CBDT issued clarifications under the said sections in form of answers to frequently asked questions (FAQs) vide circular no. 9/2020 dated 22nd April, 2020 (covering FAQ 1-55) and circular no. 21/2020 dated 4th December, 2020 (covering FAQ no. 56-89).
And in the same reference FAQ no.70 of circular 21/2020 clarified eligibility for search case 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) / 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.
In order to remove any uncertainty in this regard, and in the exercise of powers under section 10 and 11 of Vivad se Vishwas, it has been 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.
And accordingly the FAQ no. 70 of circular 21/12020 stands modified to this extent.
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