The CBDT has notified a fresh set of rules(Relaxation of Validation Rules, 2021) to facilitate the settlement of the long-drawn retrospective tax dispute with The British telecom giant Vodafone Plc.
“The form and manner of furnishing undertaking under Explanation to the fifth and sixth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9 of the Income Tax Act, 1961 (43 of 1961), as prescribed under sub-rule (1) and sub-rule (3) of rule 11UE and rule 11UF of the Income Tax Rules, 1962, shall mutatis mutandis apply to clauses (i), (ii) and (iii) of the first proviso to section 119 of the Finance Act, 2012,” the notification said.
“The conditions for the purposes of clause (iv) of the Explanation to the fifth and sixth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9 of the Income Tax Act, 1961 (43 of 1961), as prescribed under sub-rule (2) of rule 11UE of the Income Tax Rules, 1962, shall mutatis mutandis apply to clause (iv) of the first proviso to section 119 of the Finance Act,” the notification added.
These rules are enacted in the way for settlement of the retrospective taxation cases that arose due to the 2012’s controversial amendment to the Income Tax Act.
As per the new Rule, Such companies are required to give a declaration to the Income-tax department, withdrawing all the pending legal cases against the Central government. Also, they are required to indemnify the Indian government against any claims & will commit not to seek any damages.
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