Vivad Se Vishwas Scheme Not Applicable Where Prosecution Has Started, Clarifies CBDT [Read Circular]

The Central Board Direct Tax on Wednesday clarified that taxpayers will not be able to avail benefits under the Vivad se Vishwas scheme in cases where prosecution has been instituted.The CBDT, through a FAQ has, has clarified that, "where only notice for initiation of prosecution has been issued without prosecution being instituted, the assessee is eligible to file declaration. The Central Board Direct Tax on Wednesday clarified that taxpayers will not be able to avail benefits under the Vivad se Vishwas scheme in cases where prosecution has been instituted. The CBDT, through a FAQ has, has clarified that, "where only notice for initiation of prosecution has been issued without prosecution being instituted, the assessee is eligible to file declaration under Vivad se Vishwas. The Direct Tax Vivad se Vishwas Scheme, 2020 was introduced by the Finance Minister to encourage out of courts settlements for disputes related to income tax and corporation tax, pending before any appellate forum.