SME Times News Bureau | 10 Aug, 2019
The Finance Ministry has
simplified the process of assessment in the case of Startup entities, said an
official release on Saturday.
In cases where scrutiny
assessments of Startup entities are pending, the CBDT has decided that in case
of Startup Companies recognized by 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),the contention of the assessee will be summarily
accepted.
In case of Startup Companies
recognized by DPIIT which have filed Form No. 2 and whose cases have been
selected under scrutiny to examine multiple issues including the issue of
section 56(2)(viib),this issue will not be pursued during the assessment
proceedings and inquiry on other issues will be carried out by the Assessing
Officer only after obtaining approval of the supervisory authority.
In case of Startup Companies
recognized by the DPIIT, which have not filed Form No. 2, but have been
selected for scrutiny, the inquiry in such cases also will be carried out by
the Assessing Officer only after obtaining approval of the supervisory
authorities.
In addition to the above, the
Central Government has further decided to relax Para-6 of the DPIIT
notification No.127 (E) dated 19.02.2019 and make it clear that this
notification will also be applicable to Startup Companies where addition under
section 56(2)(viib) has been made and the assessee has been recognized by DPIIT
and subsequently filed Form No. 2.