Providing comfort to worried foreign investors, the Finance Minister, Mr Pranab Mukherjee on Wednesday said the Income-Tax Department will not reopen 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.
Mr Mukherjee, in the Budget 2012—13, proposed to amend the Income-Tax Act, 1961 with retrospective effect to tax Vodafone-type merger and acquisition deals done overseas that involve domestic assets.