Finance Minister P. Chidambaram said that the Income Tax Department will not act rashly in Vodafone-like cases. At the same time, the Finance Ministry will take a call on bringing any change in the retrospective amendment only after the Shome Committee submits its views, he added.

In a press conference on Monday, Chidambaram was asked whether the assessing officer could issue notice or reminders to Vodafone and other companies because the law says they can do so.

In response, he said, “There is Section 119. There is a Supreme Court judgement. There is the opinion of the Attorney General. All this has to be studied by the assessing officer and his supervising officers. They are not going to act rashly. These are not small amounts on which you can take a rash decision.”

The Minister categorically ruled out giving any specific instruction after Retrospective Amendment has become law. “Nothing will happen, wherever there is litigation. Wherever replies have been given, replies will be considered. No special instruction has been given,” he asserted.

Now, the Ministry will take a call on any change in the Retrospective Amendment as well as General Anti Avoidance Rules (GAAR) only after the Shome Committee submits its final view. The Shome Committee submitted its draft report on GAAR on Saturday.

After getting comments from the public, Shome Committee is expected to submit its final report by month end. “We will decide whether it requires urgent action or we can wait till February 28 (date of presentation of Budget for 2013-14),” he said.

shishir.sinha@thehindu.co.in

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