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

WHICH DEPARTMENT WILL PROVIDE THE PROOF OF WITHDRAWL, IN THE ERA OF FACELESS TRANSACTION I AM UNABLE TO WITHDRAWN THAT . PLEASE GUIDE
Answer Please refer CBDT Circular No. 9   dt  22-4 ,2020 ,  Q  No. 43 and answer given by the CBDT .   For matters before the ITAT & CIT(A) there is no requirement to submit a proof of withdrawal. It is only after getting certificate from the designated authority , the assessee has to intimate to the… (read more)
Query

Can assessee suo moto approach DVO for valuation, even if AO is not approaching DVO for the same.
Answer The assessee cannot approach DVO for Valuation .However the assessee can  file the valuation report of the Registered Valuer .   The Assessing Officer  is bound to follow  the valuation  given by the registered valuer or refer  the matter to DVO.  In   ACIT v. Synbiotics Ltd. (2016) 48 ITR 210 (Ahd.)(Trib.) held that  the authorities are… (read more)
Query

AS PER VSV SCHEME TAX IS PAYABLE BY 30/04/2021 ,IF NOT PAID THEN 110% IS PAYABLE UP TO WHICH DATE AND ANY INTEREST IS THERE ON THE AMOUNT PAYABLE AFTER 30/04/2021
Answer The CBDT has not notified the date for last date for payment under VSV Scheme . There is no separate interest payable . It seems the CBDT may allow few more months for payment of Tax under the VSV Scheme.     (read more)
Query

Mine case is before CIT (Appeal)
Initially I applied to opt the scheme. I was permitted and the demand was placed for deposit. I reviewed again and now wants to withdraw from the scheme and didn’t deposited the demanded amount. I’m interested in CIT appeal.
Do I have any binding to opt the scheme and my rights of appeal shall stand withdrawal?
Answer The querist can opt out, however if taxes under the Vsv Act the assessee will not get the  refund.    Please refer  circular No . 9 /2020 dt 22-4 -2020--Q, No . 42 and answer   given by the CBDT,    which state that any amount paid in pursuance of a declaration made under the Vivad Se Vishawas… (read more)
Query

HUF taken loan from a company in which Karta is Director. The name of this company was automatically strike of by the ROC i.e. Closed. Now, the HUF cannot pay the loan as the company has been closed. HUF has received show cause notice for A.Y. 2018-19 why loan amount outstanding may not be added to your income u/s 41(a). HUF is ready to pay loan amount how to deal with this problem and case law may please be given. We seek your guidance.

With Highest Regards,

CA Suresh Goyal

Answer The AO cannot invoke the provision of section 41(1) based on the facts stated by the querist.   The querist may refer ,CIT v. Mahindra And Mahindra Ltd. [2018] 404 ITR 1 (SC)  held that for application of section 41(1), it is sine qua non that there should be an allowance or deduction claimed by assessee… (read more)
Query

Assessment year wrongly mentioned in challan under VSV Scheme. How to rectify the same
Answer The assessee may write to the Designated Authority . The assessee  may refer  CBDT Circular  No 21. 2020 . dt. 4 -12-  2020  - Q. No 89 answer given by the CBDT it is clarified that , the declaration can be revised any number of times before the DA issues a certificate under section 5(1)… (read more)
Query

Sir,
The petitioner has submitted on 24-02-2021 Form-1 & Form -2 under DTVSV Scheme. Form -3 is awaiting as per DTVSV portal till now. When Form-3 is expected.
Whether today is last date or will it be extended for the benefit of income-tax department.

Answer The assessee may get  in due course of time . It may be desirable to write to the Designated Authority .     (read more)
Query

Sir,
Whether DTVSV Scheme is expiring today before 31-03-2021 in the night 12:00 P.M. Whether any extension.
Answer To the best of our information no extension is granted . The CBDT may not grant any further extension .    (read more)
Query

Re: clarification regarding eligibility under DTVSV Scheme
ORDER OF THE ITAT PRONOUNCED ON 04-10-2019 for the ASSESSMENT YEAR 2012-13 ITA NO 432/VIZ/2017 OPTED FOR DTVSV SCHEME FOR WAIVER OF INTEREST U/S 234(B) DATE OF FILING APPEAL BEFORE THE HIGH COURT NOT EXPIRED TILL 02-02-2021 WHETHER THE PETITIONER IS ELIGIBLE UNDER DTVSV SCHEME. NOW THE CLARIFICATION REQUIRED IS SINCE TIME FOR FILING IS NOT LAPSED AS ON 31-01-2020 (Actually 120 days from the pronouncement date 04-10-2019+ 120 days = 02-02-20 for submission in the High Court. The Petitioner submitted Petition under DTVSV Scheme under Schedule VI. To be filled in case appeal or writ of assessee is pending before High court as on 31-01-2020 or the time for filing appeal or writ by the aseessee before High court has not expired as on 31-01-2020 on 24-02-2021.Appeal not filed in High Court. Whether it can be considered as deemed be pending in High court under DTVSV Scheme.
Answer The assessee has to consider the date of receipt  as date of communication as per section 260A(2) (a) of the  Act . Though the assessee has not filed the appeal the assessee is eligible for the Scheme . Refer  Circular No 9 /2020 dt 22-4 -2020   Q. No 1 and answer given by the CBDT… (read more)
Query

ORDER OF THE ITAT PRONOUNCED ON 04-10-2019 for the ASSESSMENT YEAR 2012-13 ITA NO 432/VIZ/2017 OPTED FOR DTVSV SCHEME FOR WAIVER OF INTEREST U/S 234(B) DATE OF FILING APPEAL BEFORE THE HIGH COURT NOT EXPIRED TILL 02-02-2021 WHETHER THE PETITIONER IS ELIGIBLE UNDER DTVSV SCHEME. NOW THE CLARIFICATION REQUIRED IS SINCE TIME FOR FILING IS NOT LAPSED AS ON 31-01-2020 (Actually 120 days from the pronouncement date 04-10-2019+ 120 days = 02-02-20 for submission in the High Court. whether he is eligible under DTVSV Scheme
Answer The assessee has to consider the date of receipt  as date of communication as per section 260A(2) (a) of the  Act . Though the assessee has not filed the appeal the assessee is eligible for the Scheme . Refer  Circular No 9 /2020 dt 22-4 -2020   Q. No 1 and answer given by the CBDT.… (read more)