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

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

can we put TDS default in vivad se vishwas scheme

Can compnay accountant directly file vivad se vishwas scheme form
Answer VSV Scheme is ended on 31 -3 -2021 hence the question became academic .  The  form has to be signed by the person who is competent to file the return . Accountant cannot sign the form  on behalf of the Company . It has to be signed by Managing Director . In case there is… (read more)
Query

I have received form 5 wherein refundable amount, when department will issue refund anount or do i need to take any action to get the refund
Answer The assessee need not take any action .The assessee may have to  verify whether the amount is correctly determined or not  , if there is any mistake the assessee may write to the concerned authority for rectification of mistake .   (read more)
Query

The Company has paid taxes under MAT. Even after accepting the disputed income tax is payable under MAT. While settling the disputed income under Vsv the company inadvertently not filled up Schedule -D and instead fill schedule A with tax liability NIL.

Effectively the as taxes were payable under MAT provision no tax under normal provisions were required to be paid. while merely MATC was required to be reduced. Now DA has issued FORM -3 with a demand.
Can company file a rectification to DA for amendment of FORM-3 ? what are the possible way out of rectification ?
Answer Please refer CBDT Circular No 21 /2020 dt  4-12-2020  dt  Q. No 89 and Answer given by the CBDT , which clearly state that  , declarant can revise the declaration any number of times before DA issues a certificate under section 5(1) of the Act .  It may be desirable file rectification application . The… (read more)
Query

Dear Sir/Madam, our case was pending with CIT (A) for additions made by AO. for those years which is pending with CIT (A) 234A, B & C Interest was not paid. so Interest should be paid only 25% or Full Interest to be paid. please advise
Answer We presume that the assessee has filed an application under the VSVAct  against quantum of appeal . Once the quantum appeal is settled the assessee need not pay the interest .However if only interest appeal is pending the assesssee may have to settle at 25%. .Now it became only academic , as the scheme is… (read more)
Query

Dear Sir
CIT(A) passed order of penalty in November, 2016 but the order was not received by me as I am NRI staying outside India. I filed appeal in Hon’ble ITAT in Feb 21 with a request for condonation of delay and my appeal was admitted and the delay was condoned by Honble Tribunal in mid march 2021 stating that I can apply under VSV. Application under VSV was submitted by me before 31 March 2021. The application has been rejected by CIT citing the reason that as per FAQ 59 of FAQ circular dated 4/12/20 the application of delay of condonation should have been filed before 4/12/20, the date of issuance of FAQ circular. I have observed on net that Hoble HC in some recent judgement has ruled that FAQ 59 is erroneous and can not be part of VSV. My query is should I appeal to HC against the rejection? Is rejection under FAQ 59 of FAQ circular bad in law? sir,I need your urgent help and will be grateful if I get immediate response.

Answer The assessee has to file writ petition before the High Court . The High Court may direct the Designated Authority to accept the VSv declaration filed by the assessee.  We have been informed  that Delhi High Court  by their order dated 3-3 -2021 , has admitted the writ petition filed by the assesee on similar… (read more)
Query

Assessee submitted valuation report as per Rule 11UA determining valuation of share at Rs.32/- per share. The Assessing Officer calculated Value of share as under: –
Share Capital – A
Reserves & Surplus – B

A + B divided by number of shares (c). The value came to Rs.22. The Assessing Officer made addition of Rs.10 i.e Rs.32- Rs.22 in the hands of the company on the number of shares allotted by the company u/s 56(2)(viib). Please let us know whether the addition is justified. Any case law in support of the assessee. Please guide us how to proceed further.
Answer The assessee can follow  Discounted Free Cash Flow Method or Net Asset Value method . Unless the AO  the Assessing Officer had not pointed out any flaw in the method of calculation of the value of shares  the AO cannot change the method .  CIT v. VVA Hotels  Pvt Ltd (2020)429 ITR 69/( 2021) 276… (read more)
Query

Hello sir any notifications or is there of any chances extension of payment of amount under vivad se vishwas scheme due to the lockdown and other issues faced or any sort of payment extension we can expect?
Payment date which is due on 30/4/2021 after that?
Answer The CBDT may not extend the date further. If  payments are made after 30-4 -2021 , the assessee may have to extra amount as per the scheme . Last date for payment of tax with extra amount is not yet notified . (read more)
Query

Dear Sir,

We have filed forms 1 & 2 with taxes paid against the demand during the relevant A.Y., thereafter, the department has issued Form 3 computing final tax liability. The assessee has paid the Taxes according to Form 3.

Now, It is submitted that the during appellate proceeding the bank account of the assessee has been attached and the department has seized the entire amount against the demand. Now the department has given the entrie tax credit in Form 26AS and as such we want to ask that how to get refund the said amount as we have already paid the taxes or is there any option to file revised Form 1&2, so that we can take the tax credit, accordingly.

The portal is reflecting that revision of Form 1 & 2 has not allowed as the Form 3 is already issued. Therefore, we want to ask how to get refund on the said amount.
Answer Please refer CBDT Circular No 21 /2020 dt  4-12-2020  dt  Q. No 89 and Answer given by the CBDT , which clearly state that  , declarant can revise the declaration any number of times before DA issues a certificate under section 5(1) of the Act .  The assessee may approach the Designated Authority .  For… (read more)
Query

Respected Sir,

Submitted form 4 and made payment in Jan 2021 first week. Status showing form 5 awaited from CIT.

Met compliance officer in early March and was told 2-3 weeks as form 5 yet to be issued to all.

Add to it section 250 notice from CIT Appeal NFAC received 5th time asking for form 5.

Questions: 1 Unable to meet officer due to lockdown. what to do ? Can follow up letter be sent via portal (to whom) or via email (from where to get) or any other option you suggest?

2. What if they do not issue form 5 at all ? Is it possible? What is legal remedy – worst come worst scenario after written follow up with CIT and chief commissioner CBDT? Please elaborate in detail.

Request your help and guidance in this matter.
Thanks
Answer The Designated Authority will issue  Form 5  in due course of time . The assessee may write to the Chairman CBDT  Shri Pramod Chandra Mody  e mail is , chairmanabcbdt@nic.in   . The assessee has only legal remedy is file writ petition before High Court .   (read more)
Query

sir WE DEPOSIT THE CHALLAN INTO SBI ON 30/03/2021 BUT ITS CLEARED ON 03/04/2021 THEN ITS ACCEPTABLE OR WE SHOULD BE PAID ADDITIONAL AMOUNT.& 2)THE EXTENDED DUE DATE OF PAYMENT IS 30/04/2021 ITS WILL APPLY US.
Answer The earlier notification dated 27 -10 -2010 has been amended  by vide Notification No. 09/2021/ F.No. IT(A)/01/2020-TPL dated 26th February, 2021 by CBDT, the time limit for payment without additional amount is extended to 30 th April 2021 .   The assessee is not liable to pay any interest .  Even otherwise the date of presentation … (read more)