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

NEW DELHI: Finance Minister Pranab Mukherjee has again assured investors that the tax department will not use the retrospective amendment to the income-tax law to open cases where assessment proceedings had been finalised, but tax officials have indicated that nearly a dozen cases where assessment is incomplete will get a tax notice soon.

"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," Mukherjee said.

CBDT has issued the circular to its field formations asking them not to open cases in which assessment order has already been passed.

Armed with this retrospective amendment, the government is expected to issue an over Rs 20,000 crore tax demand on Vodafone for its $11.2-billion acquisition of Hutch India.

FM also urged tax officials not to rush to High Courts in tax case where question of law is not involved.