Page 94 - DHC Budget Book 2021-22 Final
P. 94
It is proposed to amend the Direct Tax Vivad
se Vishwas Act, 2020 w.r.e.f. 17-03-2020 to exclude the cases arising out of or pursuant to order passed by Settlement Commission under Chapter XIX-A of the IT Act. The definition of “appellant, disputed tax and tax arrear” in Sec. 2(1) is accordingly proposed to be amended.
Comments
The amendment is proposed to remove ambiguity and to clarify the original legislative intent of the Direct Tax Vivad se Vishwas Act, 2020. The Income Tax Department vide Circular No. 21/2020 dated 04-12-2020 had clarified the same at Q No. 63 of the FAQ.
INDIA BUDGET 2021-22
7.26
Clarification regarding the scope of Vivad se Vishwas Act, 2020 [w.r.e.f. 17-03-2020]
7.27 Provisional attachment in cases of penalty u/s 271AAD for fake invoices [Sec. 281B] [w.r.e.f. AY 2021-22]
Sec. 281B empowers AO to provisionally attach any property of the assessee, if necessary, in order to protect the interest of revenue during the course of assessment or reassessment after obtaining necessary approval.
Sec. 271AAD was inserted vide the Finance Act, 2020 to impose penalty on a person or a person who causes such person to make a false entry or omit an entry from his books of accounts. It is an anti-abuse provision. Upon initiation of such
penalty proceedings, it is likely that the taxpayer may also evade the payment of such penalty, if imposed. Hence, in order to protect the interest of revenue, it is proposed to amend the provision of Sec. 281B to enable the AO to exercise powers of provisional attachment during the pendency of proceedings for imposition of penalty u/s 271AAD, if the amount or aggregate of amounts of penalty imposable is likely to exceed H 2 Crs.
7.28 Amendments to The Prohibition of Benami Property Transactions Act, 1988 [PBPT Act] [w.e.f. 01-07-2021]
Hitherto, Sec. 7 provides that CG shall, by notification, appoint one or more Adjudicating Authorities to exercise jurisdiction, powers and authority conferred by or under this Act.
Further, Sec. 71 provided that until any Authority is notified by CG, Adjudicating Authority appointed u/s 6(1) of Prevention of Money- Laundering Act may discharge the functions of Adjudicating Authority under the PBPT Act.
Provisions of Sec. 7 has now been proposed to be substituted to provide that the competent authority authorised under Sec. 5(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 shall be the Adjudicating Authority to exercise jurisdiction, powers and authority conferred by or under this Act.
Hence various provisions dealing with Composition of the Adjudicating Authorities, Qualification, Powers, term of office, removal, vacancies etc. of the Chairperson, members and other officers of the Adjudicating Authority and Constitution of benches of the Adjudicating Authority are proposed to be omitted.
Sec. 26(7) provides time limit for passing of an order by the adjudicating authority. Since new adjudicating authority shall be appointed w.e.f. 01-07-2021, new proviso is proposed to be inserted after the first proviso to explanation to Sec. 26(7) to provide that where the time limit for passing the order expires during the period between 01-07-2021 to 29-09-2021, the time limit shall be extended to 30-09-2021.
92 Building a Resilient and Confident India
