| Query | Sir, in my case form 5 has been issued by CIT, thereafter i received a notice from department for rectification u/s 154 for enhancement of tax and interest on the mistake apparent from record. Mistake pointed out by department is correct. Can the department enhance the demand after issuance of form no. 5 ? Kindly assist. A quick response is highly appreciable. |
| Answer | Any Authority which has passed the order has inherent power to rectify the mistake apparent from the record . When the Act does not prescribe any time limit to pass the rectification order , it has to be within a reasonable time The error has to apparent from record. Debatable issues cannot be rectified as… (read more) |
Answers to queries on Vivad Se Vishwas Scheme
| Query | We have paid 25% of penalty tax by availing Vivaad Se Vishwas Scheme. |
| Answer | The assessee has to move an application before the Tax Bench of the High Court for withdrawal of appeal giving the details of appeal No , tax paid and certificate received from the competent authority . The said application also be served on the Assessing Officer who has jurisdiction over the assessee. The matter will… (read more) |
| Query | Assessed receive order under section 143 3 and filled his form 35 for appeal and assessing officer sent to form to CIT ANY REPLY WAS NOT YET RECEIVED ONE QUESTION IS MY QUARY IS IN WHICH SECTIONS ARE IMMUNITY OF THE SCHEME |
| Answer | Section 6 of The Direct Tax Vivad Se Vishwas Act , 2020 deals with immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases . Penalty which are related to quantum of assessment will get the immunity . Please refer Circular No Q. no 80. And answer . which… (read more) |
| Query | i am v.saroja holding pan aqxpv6174d. My husband had to recieve Rs.24,60,191 refund amount through vivad se viswas scheme. after he passed away i was chosen as legal heir. but my refund is not processed. i have already filed form 4 and recieved form 5. so i filed a grievance in cpgrams. even though i havent recieved my refund. i request the department to look into this issue. |
| Answer | Please make an application addressing to Chairman CBDT . If no response is received , please a writ before the High Court. High Court will direct the department to issue the refund order. (read more) |
| Query | Penalty notice received even after filling under vivad se viswaas , vsv form 5 also received,what to do now |
| Answer | The assessee has to intimate to the ,, Designated Authority / Assessing Officer stating that the assesee has availed the benefit of Vivad se Vishwas Scheme , enclose the form no 5 , details of tax paid and request for drop the penalty proceedings . The Assessing Officer will drop the penalty proceedings . Section… (read more) |
| Query | The assessee has not filed return of income. Assessment was completed by making an addition of Rs.9,61,000.The assessee availed Vivad se Vishwas paid taxes received Form. No.5. Penalty under section 271F of Rs. 5,000/- levied. In the scheme no penalty if scheme is availed. Please clarify whether penalty is leviable. |
| Answer | Please refer Circular No . 21/2020 dt .4th December , 2020. ( 2020) 421 ITR 1 ( St ) Q.No 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… (read more) |
| Query | my clients filed appeal u/s 264 of income tax act for the assessment year 2015-16 and 2016-17. and i have filed vivad se vishwas application within time but application is rejected with the reason that appeal filed with in no time limit. but my appeal is still pending in department and there is no rejection of appeal |
| Answer | The assessee has only remedy of filing a writ before the High Court . High Court may condone the delay in filing the revision application u/s 264 and direct the Designated Authority to accept the declaration filed by the Assessee. In CIT v. Shatrusailya Digvijaysingh Jadeja (2005) 277 ITR 435/ 147 Taxman 566/ 197 CTR… (read more) |
| Query | The order wherein final demand was settled was passed on 21.12.2020. The Assessee filed Form 1 & 2 for VSV on 29.12.2020. However, refund of another year was adjusted with the outstanding demand vide above mentioned order. The Assessee inadvertently ignoring the amount of refund adjusted made payment of tax disputes under VSV. Please guide on how to take refund from the Income Tax Department. Have visited the Assessing Officer, but no further action from their side. |
| Answer | The assessee may write to the Designated Authority to rectify the tax determined and refund of excess amount paid . In case no response is received within a reasonable time, the only remedy is to file writ before High Court . (read more) |
| Query | With regard to the replacement of machinery claimed as revenue expenditure by the assessee but treated as capital expenditure in the assessment by the assessing officer. The issue is pending before appeal. If the dispute is settled Under VsVs scheme can the assessee claim consequential depreciation in respect of that asset in subsequent years taking into account sec 8 of the VsVs act 2020 |
| Answer | When the Assessing Officer treated the revenue expenditure as capital expenditure , he ought to have allowed the consequential depreciation . In. CIBA India Ltd v. CIT 1993)202 ITR 1/114 CTR 105/ 70 Taxman 505 (Bom.) (HC) the court held that when the expenditure is held to be capital expenditure the Tribunal ought to have… (read more) |
| Query | WE RECEIVED FORM 5 FROM CIT IN THE MONTH OF SEPTEMBER 2021 BUT YET NOT RECEIVED REFUND. I WANT TO KNOW WHAT IS THE FURTHER PROCESS AFTER RECEIVING FORM 5? |
| Answer | Please write to the Designated Authority. In case no reply is received within reasonable time , the assessee may file writ before the High Court . (read more) |