In a letter addressed to Principal Chief Commissioners of Income Tax, the Central Board of Direct Taxes (CBDT) has urged field officers to file prosecution cases against those entities which claimed bogus long-term capital gains.
The CBDT Chairman also informed that, a list of cases was forwaded to principal commissioners of Income Tax for taking action under section 276CC of the Income Tax Act in the very beginning of the Financial year.
The CBDT has also forwarded a list of potential cases of prosecution for TDS default was uploaded on TDS portal.
āProsecution proceedings can be successfully initiated in several cases of entry operators including those concerning bogus Long Term Capital Gains (LTCG) claims, cases rejected by Settlement Commission, etc. I also find that a large number of compounding applications are pending disposal at your endā, the CBDT Chairman Sushil Chandra said in the letter.
While giving strict instructions to Income Tax officers, the CBDT Chairman also said, āProsecution and Compounding are important areas against Tax evaders and non-compliant assesses and cannot be allowed to be ignored. As we are in the last month of the Current Financial Year, i would appreciate if you could put in your best and expedite filing of prosecution complaints and disposal of compounding applicationsā.Ā
Read the full text of the letter below.
