Answers to queries on Vivad Se Vishwas Scheme

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We have requested a panel of experts to assist taxpayers and professionals on questions relating to the Vivad Se Vishwas Scheme. The panel comprises of Dr. K. Shivaram, Senior Advocate, CA Rajan Vora and CA Pradeep Kapasi. If you have a query, please use the form to ask it. We will request the panel to provide an answer as soon as possible.
See also Vivad Se Vishwas Scheme: The Law, Procedure And Dilemma where a link to all necessary resources is given

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The answers given below are in response to queries asked by other people.
Query

My assessees return was processed for the ay 2015-16 and refund of Rs 172284/- was received including interest of Rs5166/-.Subsequently the case was selected for scrutiny and a demand was made of Rs 272450/-including interest u/s 234a 9656/-,234b 18744/- ,244a 5166/-,234d 9760/-.The assessee opted for vivad se viswas scheme and filed the same .However on receipt of Form 3 it is seen the only 234a and 234b has been waived and interest under 244a and 234d have been demanded with disputed tax .May i know whats the correct treatment .Is the interest waived is only with respect to disputed tax ??Kindly help

Answer (read more)
Query

In my case after issue of Form 3 on 14/12/20 a communication has been received giving a revised Form 3 increasing the Tax payable quoting a Circular by CDBT dated 4/12/20. My case while it was of Assesment under Sec 143 as also informed in Form 1 submitted by me is now being treated as a Search case due to some guidelines in the captioned circular. Sec 5(3) of the VsV scheme clearly stipulates the the Form e once issued is conclusive and can not be reopened in any subsequent proceeding under the OT Act.

Answer (read more)
Query

Assessment order u/s 147 read with sec. 144 passed and later on Ex-parte order u/s 271(1)(C) also passed by the same AO in the same case. The appeals against both the orders are pending with CIT (A). What will be the liability under VSVS? only Tax amount or Tax + 25% of penalty..?

Answer (read more)
Query

In a case, an assessment was made denying the exemption under section 54 claimed by the assessee on the ground that the new residential property constructed was used for commercial purposes though initial approval was given by the Corporation for residential unit. While completing the assessment the A.O. did not allow any deduction for cost of acquisition (CoA) on the ground that it was not claimed in the return though in the course of the hearing request was made in writing to allow the CoA. Both appeal and rectification application was filed. The A.O. after nearly 10 months rejected the rectification application. Can VSV application be filed with the request to allow payment of tax only on the amount payable after CoA which is allowable under the law? Can the Designated Authority direct the A.O. to compute the tax after deduction of CoA?

Answer If the assessee desires  to settle the issue the tax has to be paid on the quantum of addition disputed in the appeal memo . The Designated   Authority has no power to issue any direction to the Assessing Officer. The assessee may have to file an appeal before the CIT (A) against the rejection of… (read more)
Query

The assessment is done u/s 143(3) and addition is made for LTCG for penny stock case. No search / search assessment was done on the assessee. We have filed for VSV. The AO is planning to amend calculations of Tax considering this as a search case based on Q no. 70 in FAQs. He is of the view that search was done on a kolkata based entity and from that the informations has been passed by the investigation wing. Hence according to him the Reply to the FAQ applies in our case. Kindly guide.

Answer The assessee is right similar view is advanced by the Officers across the Country , it seems the representation is made  by the Tax Prctioners .  If the Board is not accepting the representation the aggrieved assessee may have to file Writ before High Court .   (read more)
Query

Sir,
Under DTVSV scheme i have submitted form 4 online. But have not received any acknowledgement for the same. Its shows form was submitted. How do we check if it has been received by the authorities. And after submission of form 4 what is the time period to receive form 5 from the authorities

Answer There could be some delay in forwarding the intimation , that will not invalidate the form submitted by the assessee. The Assessee can make the payment on or before March , 2021 , without payment of additional amount . Refer Circular No 18/2020 dt 28 -10 2020   (read more)
Query

AO passed the order U/s 143(3) r.w.s. 147 by making addition. Later Assessee filed the appeal with CIT (A) who unfavours the assessee by confirming the addition made by AO. Assessee later filed the appeal with ITAT which given the decision on 19/12/2019 as “The Assessing Officer shall grant reasonable opportunity of being heard to the assessee in accordance with set principles of natural justice. Thus, all the grounds raised by the assessee in this appeal are allowed for statistical purposes.” Till date no notice is being issued by AO for hearing. Now assessee wants to opt for VsV can he apply for the same. Also how he can show the appeal pending in the Form No.1.

Answer The assessee can  avail the benefit of the scheme as the limitation for filing an appeal before High Court has not expired as on 31 -1-2020 .ie. As per S. 260A (2) (a)  of the Act, the limitation for filing the appeal is 120 days from the receipt of the order. Please refer  , Circular… (read more)
Query

A CASE OF 194-I RELATING TO DEDUCTION OF TDS FOR AY-2010-11.
ASSESSEE HAVE NOT DEDUCTED TDS ON RENT, AN DEMAND WAS RAISED AGAINST IT, FOR WHICH I WAS OPTING VIVAD SE VISHWAS SCHEME,WHILE LOGIN TO WEBSITE,ON TAB OF SCHEME SELECTING ASSESMENT YEAR TAB IT SHOWING FROM AY 13-14.
AND THE ASSESSEE HAVING A CASE OF AY-2010-11.

THEN HOW ASSESSEE CAN OPT FOR SUCH SCHEME.

Answer The assessee can avail  the benefit of the scheme . Rules or forms cannot go beyond the the provisions of the Act. As per S. 2(1) (a) defines the appellant , as per the definition  the assessee is eligible   . Section 2 (n)  defines the specified date  i.e. means the January , 2020.  Also refer… (read more)
Query

Hello Sir

Assessee’s appeal for AY 2009-2010 in ITAT was partly allowed, bogus purchase addition is reduce from 12.5% to 5%
Assessee did not file appeal against the ITAT order.
Department has filed appeal in High court against the order of ITAT.
Assessee has two more appeal pending before CIT (A) on similar grounds and fact.
Now will assessee get benefit of 50% on having favorable judgment from higher authority in VsV for this two pending appeal before CIT (A) which are on same ground and facts?

Answer Please refer  Section 3  proviso and   Circular  No    dt     Q. No 39 . Ans : In this case on the issue where the taxpayer has got the relief from ITAT in an earlier year ( not reversed by HC or SC ) the disputed tax shall be computed at half of normal rate of 100%… (read more)
Query

Assessee has returned Rs. 10 crores as income and has not paid any taxes as on date of filing return and no computed thereof.

AO has made an addition of Rs. 2 crores and determinbed total income at Rs. 12 crores. AO has raised tax demand on entire 10 crores along with additional interest u/s 234A,B and C.

As per Section 2(j)(A), disputed tax means the total income tax (incl surcharge and cess) payable had such appeal be decided against the Assessee.

In the instant case, can the assessee file application under VSVS for payment of entire tax outstanding on Rs. 12 crores and claim full waiver of interest due (including on returned income). Essentially, the assessee is also getting the benefit of waiver of interest on self assessment taxes.

Answer One has to see what is the tax in dispute is pending in appeal .  The assessee has to settle the tax in dispute . The tax paid under section 140A will be  given credit to the assessee.  The assessee may have to pay only Tax  the interests  levied  will be waived , once the… (read more)