Consolidated circular for assessment of Startups

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..... rculars/clarifications in the matter. This circular consolidates all these circulars and further clarifies as under:- 2. Assessment of Startups The circular No. 16/2019 dated 7th of August, 2019 provided for the following procedure for pending assessment of the Startups:- i. In case of Startup companies recognized by Department for Promotion of Industry and Internal Trade (DPIIT) which have filed Form No. 2 and whose cases are under limited scrutiny on the single issue of applicability of section 56(2)(viib) of the Income-tax Act, 1961 (the Act),the contention of the assessee will be summarily accepted. ii. In case of Startup companies recognized by DPIIT which have filed Form No .....

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..... In case the appeal against the assessment is pending before the Commissioner of Income-tax (Appeal)[CIT(A)], the appellate order should be passed by CIT(A) on or before 31 st December, 2019 after taking into account the fact that the Startup has filed declaration in Form No. 2 and hence the provisions of section 56(2)(viib) of the Act are not applicable for the addition made under section 56(2)(viib) of the Act before 19 th February, 2019. The Department shall not file further appeal on the issue of addition made under section 56(2)(viib) of the Act ; ii. In case the case is pending before the ITAT, the Department shall not press the ground relating to addition under section 56(2)(viib) of the Act in these case .....

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..... 5. Under Secretary (ITA-I) Member 011-23095479 7. The Cell, for any grievances/communications relating to Startups may be approached at O/o Under Secretary, ITA-I, Room No. 245A, North Block, New Delhi-110001. Ph. No. 011-23095479/23093070 (F). The Cell will also be accessible at [email protected] . 8. Hindi version to follow. (Prajna Paramita) Director (ITA-I) (F.No. 173/149/2019-ITAM-I) - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI .....

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