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 want to know can the amount of tax under vsvs scheme deposit online vide challan no.280 or any other challan
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

An assessment was made u/s 144 read with s.147 as the assessee did not file any return nor complied to any notices. While determining tax payable the AO did not allow credit for TDS and TCS. The rectification application filed u/s 154 to allow credit is not considered verbally saying that the TCS / TDS is not being allowed to be given credit to in case where no return is filed. The assessee filed VsV declaration for full tax demand and accordingly Form 3 has been issued asking full payment of taxes. When filing Form 4 here also the assessee is not allowed to make claim of credit for TDS / TCS as it allows furnishing details of paid challans only. What is the remedy available to the assessee is such a case ? Kindly guide. Thanks
Answer The assessee  can move the rectification application before the  Designated Authority. The Designated has the power to rectify and issue  fresh demand . Alternatively pay the tax demanded by the designated Authority and claim refund of TDS and TCS  form the tax Department or file writ before the High Court . (read more)
Query

VSVT application of our company resected on ground of late filing of CIT(A). Filed under the limits of VSVT. We Condon the delay at the time of filing of CIT (A). Our VSVT application rejected. Can we file review application and to which authority
Answer Please refer Circular No . 21   dt 4 -12 -2020 Q.         No. 59 and Ans .  If the time limit for filing appeal expired during the period from 1st April 2019 to 31st Jan 2020( both dates included in the period ) , and the application for condonation is filed before the date of issue… (read more)
Query

The assessee had filed the appeal before the ITAT and the ITAT referred the case back to the AO. Now the assessee wants to opt for Vivad Se Vishwas. However, while filling up the form, what details should the assessee put in Part B i.e. details of order against which appeal is filed and details of appeal filed. Please guide
Answer One of the condition is that the  pendency of Appeal before the appellate forum as on 31 -1 -2020 or pendency of deemed appeal .  Refer Circular No 9 dt 22 -4 -2020 Q .N0 1 and Answer.  Please  also refer Circular No 21 dt 4 -12-2020  Q. No. 56 and Answer. As per the… (read more)
Query

Challan already deposited against the appeal is not mentioned in Form 1 and department has also issued Form 3.
What can be done to claim the same? Should we revise Form 1 or File the detail of Challan in Form 4?
If shows in Form 4, will the department considered the challan deposited an year earlier?
Answer Please refer  CBDT Circular No.21 /2020   dt. 4 -12 2020 , Q.No 89 :  Once declaration is filed by assessee u/s 4 of Vivad Se Vishwas can the same be revised ? If yes , at what stage of the proceedings will the same be allowed ? Ans: Yes , declaration can be revised any… (read more)
Query

THE ASSESSEE HAS RECEIVED THE FORM NO 5 FOR DISPUTED DEMAND CAN ASSESSEE FILED THE REVISE DECLARATION FOR REMANAING DEMAND
Answer Please refer  CBDT Circular No.21 /2020   dt. 4 -12 2020 , Q.No 89 :  Once declaration is filed by assessee u/s 4 of Vivad Se Vishwas can the same be revised ? If yes , at what stage of the proceedings will the same be allowed ? Ans : Yes , declaration can be revised… (read more)
Query

Whether assessee can take benefit of this scheme if Search & survey proceeding took place?
Answer One of the condition is that the  pendency of Appeal before the appellate forum as on 31 -1 -2020 or pendency of deemed appeal .  . Refer Circular No 9 dt 22 -4 -2020 Q .N0 1 and Answer. As regards Search and Seizure Refer  Q. No 6 and Answer   . The assessee can avail… (read more)
Query

How to fill form 4 in case of refund??

And in other case proof of withdrawal of CIT appeal…how to get it??
Answer The asssessee has to state the amount of refund due to  as per the computation . The  Verification  will be done the Office of the Designated Authority and thereafter the refund will be issued in due course of time .   The assessee can file the Form No 4 by  enclosing the copy of letter… (read more)
Query

Since 31st January 2021 is the last date for the scheme can we opt out of the scheme after jan 2022
Answer The assessee cannot opt the scheme after January 2021, unless the Government extend the date of the scheme . Refer Circular No 21 dt  4 -12 -2020  and  Circular No 18 /2020 dt 28 -10 -2020   (read more)
Query

the assessee income was reassess for AY 2011-12 for addition on GP on alleged bogus purchase. the matter was in appeal . Subsequently AO again reopens the assessment and this time added entire amount of purchases. the assessee is in appeal again. Now Assessee opted for VSV for 1st appeal. Form 1 by CIT indicate the disputed tax of second appeal. CIT is banking on AO’s recommendation, he refuses to see reason. pl advice

Answer Both appeals  independent . As regards the reassessment the assessee may have to file separate declaration  referring the earlier appeal.  Once the appeal of  the reassessment is settled earlier assessment order may not survive .  According to us  the CIT is right , provided both the appeals were pending as on the appointed date .ie… (read more)