The Ministry of Finance has notified Relaxation of Validation (section 119 of the Finance Act, 2012) Rules, 2021 vide notification dated October 13, 2021. Section 119 of the Finance Act deals with the Validation of demands, etc., under Income-tax Act, 1961 in certain cases.
The Relaxation of validation (section 119 of the Finance Act 2012) Rules, 2021 extends the conditions, form and manner of settling retrospective tax cases notified earlier this month to those cases where the tax demand was validated under a special provision. The Ministry has notified the following procedure under Relaxation of Validation (section 119 of the Finance Act, 2012) Rules, 2021:
- Form and manner of furnishing undertaking under first proviso to section 119- The form and manner of furnishing undertaking under Explanation to 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 (23 of 2012).
- Conditions under clause (iv) of first proviso to section 119– The conditions for the purposes of clause (iv) of the Explanation to 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, 2012 (23 of 2012).
*Tanvi Singh, Editorial Assistant has reported this brief.