I-T dept not to reopen cases prior to April 1, 2012: Pranab

[1]

Providing comfort to worried foreign investors, Finance Minister Pranab Mukherjee on Wednesday said the Income Tax Department will not re-open cases where assessment proceedings had been finalised before April 1, 2012.

"I gave a commitment in Parliament with regard to retrospective amendments that CBDT (Central Board of Direct Taxes) will issue a policy circular to clarify that in cases where assessment proceedings have become final before first day of April 2012... such cases shall not be reopened. Now CBDT has issued a circular in this regard," he said while inaugurating Pratyaksh Kar Bhawan here.

Mukherjee, in the Budget 2012-13, proposed to amend the Income Tax, 1961 with retrospective effect to tax Vodafone- type merger and acquisition deals done overseas that involve domestic assets.

These amendments, which came into effect with the President giving assent to the Finance Bill, 2012, had raised concerns among investors about re-opening of the old cases.