The Central Board of Direct Taxes (CBDT) vide Circular No. 04/2021 dated March 23, 2021 issued clarifications on provisions of the Direct Tax Vivad se Vishwas Act, 2020.
With the objective to inter aria reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process, the Direct ‘fax Vivad se Vishwas Act, 2020 (hereinafter referred to as Vivad se Vishwas’) was enacted on 17th March, 2020.
“Several representations have been received seeking further clarity with regard to the classification of a case as a ‘search case’ for the purposes of Vivad Vishwas The matter has been examined, In order to remove any uncertainty in this regard, and in exercise of powers under section 10 and 11 of Vivad se Vishwas, it is hereby clarified that a ‘search case’ means an assessment or reassessment made under sections 143(3)/144/147/153A/53C/158BC of the Income-tax Act in the ease 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. The FAQ no. 70 of circular 21/2020 stands modified to this extent.” clarified in notification.