Answers to queries on Vivad Se Vishwas Scheme

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The Union Honourable Finance Minister, Mrs Nirmala Sitharaman during her budget speech on February 1, 2020 (2020) 420 ITR 115 (St) (146) proposed to introduce a scheme at para 126 of the speech for settlement of disputes. Subsequently, the Direct Tax Vivad Se Vishwas Act, 2020 (VSV Act) was introduced. The Scheme was extended from time to time and the last date for payment under the VSV Act, 2020 extended until October 31, 2021 by CBDT, vide Notification No. 75 of 2021 dated June 25, 2021 (2021) 435 ITR (St) 25. The said scheme has benefited the taxpayers to reduce the tax litigation. When the scheme was introduced the research team of the itatonline.org had anticipated that the taxpayers may require a number of clarifications. Itatonline.org had requested the panel of experts consisting of Dr. K. Shivaram Senior Advocate, CA Rajan Vora and CA Pradeep Kapasi to answer queries arising on Vivad Se Viswas Schme to assist the tax consultants and tax payers. The expert panel started answering the queries raised by the tax consultants on February 28, 2020 and till date the expert panel have answered more than 750 questions only on the Direct Tax Vivad Se Viswas Act, 2020. From May 15, 2021 on words the itatonline.org has introduced the new section on “Ask your questions” which answers questions regularly. It is proposed that this new panel will answer the questions pertaining to Direct Tax Vivad Se Viswas Act, 2020.
See also Vivad Se Vishwas Scheme: The Law, Procedure And Dilemma where a link to all necessary resources is given

This section is now closed. Please ask your questions at our new Q&A section
The answers given below are in response to queries asked by other people.
Query

Is the scheme still available for settlement of order for demand issued in 2019/2020
Answer No scheme is  not available .  The scheme was ended on 31 st March 2021, however  for the  payment of tax the period was extended up to 30 th June 2021      (read more)
Query

SIR I HAVE OPTED FOR VSV SCHEME AND FORM 5 HAS BEEN RECEIVED IN RESPECTED CASE AFTER THAT I HAVE RECIEVED THE NOTICE OF PENALTY PERCIDING 271(1)(C) WHAT TTO DO ?
Answer The assessee should send a  reply to the notice stating that  the assessee has opted VSV Scheme for the year under consideration  hence the penalty proceedings initiated may be dropped .  The assessee also furnish the relevant documents along with reply .  Please  refer Circular No 9/2020 dt 22 -4 -20200,   Q. No. 45 and… (read more)
Query

Company is in appeal pending with Hon ITAT for AY 08-09. In notice of demand u/s 156 AY was wrongly mentioned as AY 13-14. Company opted for VSV scheme and in form 1 and 2 AY wrongly mentioned as 13-14 in place of 08-09. The fact was communicated to DA thru various mails, however no communication and form 3 is still awaited.Query is
– How to proceed further under VSV scheme and
– as no notice of demand u/s 156 for AY 08-09 issued by AO , is demand sustainable ????
Answer The assessee may have to wait for getting communication from the Designated Authority. It may be desirable to write one more letter to the Designated Authority . Designated Authority has to look in to substance  of the transaction . The wrong mentioning of the Assessment year in the notice of demand is a curable defects… (read more)
Query

Respected Sir,
In response to Form 1 & 2 filed by the declarant, PCIT issued Form 3 in December,20. The Declarant paid taxes accordingly. On 10th March,21, PCIT uploaded the revised Form 3 determining liability @ 125% invoking FAQ 70.

Q1:- Whether PCIT has power to revise Certificate issued due to CHANGE OF OPINION?

Subsequently on 24th March, 2021, the declarant made submission to restore original Form 3in terms of modification (clarification)of FAQ 70 since declarant case was neither covered under search or survey nor assessment was made thereunder.Further, in an identical case of the declarant, the Hon.Bombay HC has allowed the petition in the matter of Bhupendra Harilal Mehta V PCIT 19 (same PCIT of Querist). Till now PCIT has not revised and restored original Form 3.

Q2: Kindly suggest remedy.

Q3: Is it not contempt of the court for not following jurisdictional court order?
Answer According to us ,PCIT should have passed the rectified order in accordance with the Judgement of Jurisdictional High Court . Jurisdictional  High Court is binding on the all Authorities with in the State   In CIT v. Raghuvir Synthetics Ltd. (2017) 394 ITR 1 (SC)  and  ACIT v. Saurashtra Kutch Stock Exchange Ltd. (2008) 305 ITR… (read more)
Query

Sir,

There is no provision to fill the refund details in Form 4. Only payment details can be filled. I have uploaded the withdrawal of all pending cases letter, but I can’t fill refund details. Please guide me how to fill and submit Form 4 to get Form 5
Under vivad se vishwas.
Answer There is no separate  form for getting the refund . The  assessee has to follow the normal procedure for getting the refund . The assessee has to write the tax paid details  if more tax is paid under normal provision of the Act , the Assessing Officer concerned will issue the refund in due course… (read more)
Query

Sir, my father (deceased) received a tax notice after his demise. As his legal heir, I had appealed against the order but later I opted to settle the issue under VSV scheme and paid the full amount of tax in the first week of November.
Despite this I have received 3 notices from different AO s under the faceless Assessment scheme asking me to file a reply. I have always complied same. I have also received a notice for Penalty Proceedings on 1st March, which again has been suitably attended to.
How much time should I wait for receiving the Form 5 so the case can be closed?Whom should I approach for redressal of my grievance? Its now 6 months since I have paid the tax in full. Kindly advise.
Answer According to us you may receive  form No 5 at the  earliest . You may write to Chairman CBDT   Shri Pramod Chandra Mody  e mail is , chairmanabcbdt@nic.in   .      (read more)
Query

Sir I have received form 5 issued by cit.i have clear full n final desputed tax amount after deducted.but demand of interst shows on e filling site ie income tax site . It should be nill.how demand would be nill.and how much time it takes . After participating vivad se vishwas schme.? What should I do form 5 hard copy is submitted to Assessing officer or not.?? Department will do online.?
Answer :  It may be desirable to approach the Designated Authority .  What ever tax in dispute payable by the  Designate  Authority may have to be paid .  If there is calculation a  mistake   in the portal the assessee may file rectification application .      (read more)
Query

assessee hide turnover and file return us 44AD at 8 percent. during assessment u/s 143(3) ito determined turnover based on bank statement and propose penalty u/s 270A and 271B of non submission of audit report. Penalty was not imposed during this period assessee file application under vived se vishwas which was approved and form no 5 issued.
whether immunity will be available from both penalties or not

Answer Please refer CBDT Circular  No 21 /2020    dt. 4 -12-2020   Question No 80 and Answer . Q.80. Whether appeal against penalties that are not related to quantum assessment like penalty u/s 271B 271BA , 271DA of the Act  etc. are also waived upon settlement of appeal relating to ‘ disputed tax’ ? Answer : No… (read more)
Query

My client has opted for Vivad vishwas scheme and have completed all formalities and also obtained Form 3 i.e. A Certificate u/s.5(1) of Direct Tax VIVAD VISHWAS ACT,2020. Even then, Show cause notice for penalty U/s. 271(1)(c) seved on him
Please give your valuable suggetions

Answer The show cause notice is bad in law after receipt of  certificate . The assessee may write to the Assessing officer to drop the penalty proceedings  as the issue is settled under VsV.    Please refer Circular No 9/2020 dt 22 -4 -20200,   Q. No. 45 and answer ,  it is specifically stated that As per… (read more)
Query

We filed an appeal against Penalty. We now received form 3 also. While making the payment, are we required to pay the as Penalty or Income Tax
Answer The  assessee has to refer as penalty.  It will be regular assessment tax challan , with minor head 400 . Write properly the PAN  NO and Assessment year . There is no separate Challan  has been prescribed . (read more)