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

I recd a email saying that you can not write NA while submission of Form 4 and need to submit proof of withdrawal of claim. I don’t know how to do that online in portal. Please advise how to do if appeal is pending at CIT A
Answer Please refer  Circular No. 9 /2020 dt 22 -4 2020  Q  N0 .  43   and Ans :  Under the amended procedure no appeal is required to be withdrawn before the grant of certificate by DA. . After the grant of certificate by DA under section 5 , the appellant is required to withdraw appeal or… (read more)
Query

The Assessee has filed Form 4 of VSV. Due to a favourable ruling in another case, the Assessee wishes to withdraw its VSV application and go through domestic litigation route again. Is it possible?
Answer If the assessee is not complying the payment of  the tax the , form will be rejected . It seems the assessee has not withdrawn the appeal which is pending before the Competent Authority . The assessee can write to the Designated Authority stating that the  application filed under vsv Act need not be processed… (read more)
Query

R/Sir,
In a case (individual assessee) pertains to TDS/ TCS (4 Years) where originally deposited TDS/TCS liability itself was disputed in appeal against order u/s 200A/ 206CB (only comprising interest for late and short payment and late fee u/s 234E) in view of peculiar circumstances of the case as there was no liability to deduct/ collect TDS/TCS in the first year ( preceding year was non audit case) and in subsequent years there was no liability to deduct TDS due to very nature of agreement/contract entered into b/w deductor and deductee(NOT of the nature as referred in 194 C). These facts were duly taken in the grounds of appeal.
The question is whether TDS/TCS voluntarily deposited could be treated as disputed tax (owing to relevant ground to this effect in the appeal) along with interest thereon so as to validly entered in the relevant schedule ‘B’ of the Form-1?
Answer One has to see what is amount in dispute before the Competent Authority .  Please refer  Circular No 7 /2020 dt 4 -03 -2020  , Question No 10  and Answer given by the CBDT . As per the Circular the if assessee wants to settle disputed fee , he will need to settle it  separately.… (read more)
Query

Hello Sir,

I got Form 3 and Filed Form 4 and submitted it.

But i did not got Mail confirming submission of Form and not got Receipt No.

And in the VSV Form Section,its showing Submit Form 4 Tab Again.

So can u guide??
Answer Please refer ,   Circular No. 21     dt. 4 -12 -2020 ,    Q. 89  and Ans .  The Board clarified that the declaration can be revised any number of times before the DA issues  a certificate under section 5(1) of Vivad se Vishwas. There seems to some technical error , the assessee can file the form… (read more)
Query

If there is no search case can the amount put in the same coloums X and Y be 0.
Answer Yes you may . Also refer Circular No 21 /2020 dt 4 -12 -2020   Q. No 70 . If the assessment order has been framed in the case of a tax payer under section 143(3) /144 of the Act based on the search executed in some other taxpayer’s case , whether it is to be… (read more)
Query

We are fourth generation Army officers family. My grandfather took out an amount of Rs.Fifteen lakh and sixty thousand only from his SBI pension account between Jan 2016 and Oct 2016 for the repair and renovation of his house.
The repair work could not be done due to heavy rainfall in Dehradun and Demonetisation.
Due to demonetisation he redeposited an amount of Rs. Ten lakh and thirty thousand of the withdrawn amount.
Demand of Rs. Eight lakh was made by AO on 24 Dec 2019.
My grandfather passed away on 26 Dec 2019.
As I am legal representative but not legal heir I could not appeal to CIT A.
Our appeal to PCIT u/ s 264 was rejected . Our explanation was termed as ” incredulous”.
My question is can I appeal to ITAT.
As going to High court is very costly for salaried class.
If nothing good will come out of fighting the case.
Then can we go for V se V now to save 2 lakhs atleast of penalty and interest.
Thank you
Hoping for advice
Answer Our sympathy is with you , however , the assessee  neither   file an appeal before the Income Tax Appellate Tribunal nor  take advantages of the scheme .  Against the rejection of rejection of order under Section 264 , only remedy is file Writ before the High Court. For Availing  the benefit of the Vivad Se… (read more)
Query

How to make payment under Vivad Se Vishwas
Answer 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)
Query

if the show cause notice u/s 279(1) is not served to the assesse then, can still the prosecution be initiated against him ?
Answer When an Assessing Officer takes a decision to initiate proceedings or when a Commissioner grants for such proceedings, he has to apply his mind and on the basis of the circumstances and the facts on record he has to come to the conclusion  whether prosecution is necessary and advisable in a particular case or not… (read more)
Query

SIR, WE HA FILE FORM 1 , 2 AND 4 FOR VSV SCHEME BUT STILL WE ARE NOT GETTING FORM 5, UNDER ACTION COLUMN IT IS SHOWING AS FORM 5 IS AWAITING, CAN YOU GUIDE FURTHER STEP FOR THIS

Answer The form may be in process, you may get in due course of time .If the assessee does not get with in a week  , it may be desirable to approach the Designated Authority .   (read more)
Query

In my case I have not filed any appeal before any forum till the date, can I file DTVSV Form 1 with in prescribed due date
Answer Please refer Circular No 9 / 2020 dt 22 -4 -2020 . Q No 1 and Ans. The Board has clarified that where the order has been passed  but the time limit for filing appeal under the Income -tax Act , 1961 has not expired as on specified date are also covered . The specified… (read more)