Rule 198 empowers the Dispute Resolution Committee to reduce or waive penalty or grant immunity from prosecution, with recorded reasons and conditions, if the applicant has paid the tax due on the returned income in full and has co-operated, and provides for withdrawal of the relief on non-compliance.
198
Rules 2026 · Rule 198
Power to reduce or waive penalty imposable or grant immunity from prosecution or both under section 379
Rules 131-200
The power (sub-rule 1). On receipt of the intimation under paragraph 4(1)(xix) of the e-Dispute Resolution Scheme, 2022, the Committee, for reasons recorded in writing and subject to conditions it thinks fit, grants the applicant reduction or waiver of penalty, immunity from prosecution, or both, in respect of the order in dispute, if satisfied that the applicant has (i) paid the tax due on the returned income in full, and (ii) co-operated with the Committee.
Limits (sub-rules 2 and 3). No immunity is granted where proceedings for prosecution for an offence were initiated before the date the application was received (paragraph 4(1)(i) of the Scheme). Relief stands withdrawn if the person fails to comply with any condition, and the Act then applies as if it had never been granted.