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

When assessment is pending before ITAT and if opted for VSV scheme, whether interest raised under 220 is also exempted?
Answer Interest will be waived . Section 6 of The  Direct Tax Vivad Se Vishwas Act , 2000  grants immunity from penalty as well as interest. (read more)
Query

I have submitted FORM 1 and 2 under Vivad se Vishwas Scheme for which i have received Form 3 on 23/12/2020.

I want to know the time till which i have to file Form 4

Moreover, Govt has released notification on 27/10/2020 increasing the time limit to make payment till 31/03/2021

So altogether read with notification please suggest me the time till when i can file Form 4
Answer It is desirable to file the form at the  earliest , however tax can be paid on or before 31 0-03 -2021. As per  CBDT Circular No 18 of 2020 dt 28 -10 -2020  the  Cut -off  date for beneficial payment  under the VSV Act , 2020  is extended up to  31 -3-2021 (read more)
Query

If an assessee has been imposed interest on refund that under section 234D, can he get this amount waived if he adopts dtvsv scheme?
Answer Please refer S. 234D (2) which says that where as a result of an order u/s 154 or 155 or 250 or 254 or 260 or 262 or 263 or 264 etc is passed the amount of refund granted under Sub section 143(1) is held to be correctly allowed, either in whole or in part… (read more)
Query

APPEAL CAN BE WITHDRAWN ONLY UPON ISSUANCE OF CERTIFICATE IN FORM 3 BY DESIGNATED AUTHORITY. IN THE MEANTIME IF OUR APPEAL FIXES BEFORE ITAT, CAN IT BE DISPOSED OFF OR WILL IT BE TREATED AS DEEMED WITHDRAWL?
Answer When the matter is fixed before the ITAT, the assessee has to inform the Honourable Bench about filing of the application under the Scheme . The ITAT passes  an order stating that ,the assessee has filed an application ,hence the appeal is disposed off  , subject to the qualification that , in case the application… (read more)
Query

I had gone on an appeal to ITAT against the order CIT(A) which was passed in Aug 2018. ITAT passed an order in the month of Nov 2020. Can I apply under Vivad se Vishwas scheme

Answer Please reefer Q.No 56 and answer  Circular No 21 /2020 dt 4 -2 2020 Q. No 56: Appeal or arbitration is pending with appellate authority as on 31 St Jan 2020 (or time for filing has not expired as on 31St Jann 2020). However, subsequent to that date, and before filing of the declaration, the appeal… (read more)
Query

By mistake I have paid self tds 2014-15 in favour of banks TAN in place of my PAN number. Can I fill vivad se vishwas form to correct same. I have already rejected demand generated by cpc and sent applications to A.O. For corrections, but from 4years it’s pending and new demand raised by cpc.
Please suggest how to solve the issue?

Answer The assessee can avail the advantages of the Scheme only if the appeal is pending before the Competent Authority as on 31 -1-2020 , which is the specified date . It seems there is no appeal is pending , hence  the assessee cannot avail the benefit of the VVS .  The assessee may have to… (read more)
Query

Referring to Question 49 of FAQ dated 22 April 2020, where Question is “Once declaration is filed under Vivad se Vishwas, and for financial difficulties, payment is not made accordingly, will the declaration be null and void?” Answer given is “Yes it would be void.”
In continuation to the question, sub-section 2 of Section 4 states that “Upon the filing the declaration, any appeal pending before the Income-tax Appellate Tribunal or Commissioner (Appeals), in respect of the disputed income or disputed interest or disputed penalty or disputed fee and tax arrear shall be deemed to have been withdrawn from the date on which certificate under sub-section (1) of section 5 is issued by the designated authority.”
My Query is ‘Will our appeal be reinstated if we cannot make payment due to financial difficulties or can we make fresh appeal?’

Answer Appeal will be reinstated  if it is already withdrawn .  When an application is made before the ITAT   the Honourable members always state in the order , that in case the application is not accepted due to any reason, the assessee has right to reinstate the appeal.  It may be desirable to write in the… (read more)
Query

We have filed an Appeal before the CIT (A) with 4 Grounds of appeal. We want to make an application for only One ground of appeal under the Scheme. Can we do so ?

Answer Please refer,  Circular No 9 /2020 dt 22-4 -2020 , Q. No 11 and Q. No 14  “  Whether assessee can avail of the Vivad se Vishwas for some of the issues and  not accept other issues? “ Ans : “Refer to answer to question no 11 . Picking and choosing issues for settlement of… (read more)
Query

DEMAND UNDER SECTION 154 CAN APPLY FOR VIVAD SE VISHWAS

Answer If the appeal is pending before the  specified authority , the assessee can avail the benefit of the scheme . (read more)
Query

If the assessee received an order wherein there were 4 additions made to the Total income. The Appeal filed in CIT is also against all 4 additions made in the order. Can the assessee avail the benefits of the Vivad se vishwas scheme for any one or two (i.e, part) of the total additions made by the order?
Kindly guide.
Answer Please refer,  Circular No 9 /2020 dt 22-4 -2020 , Q. No 11 and Q. No 14  “  Whether assessee can avail of the Vivad se Vishwas for some of the issues  not accept other issues? “ Ans : “Refer to answer to question no 11 . Picking and choosing issues for settlement of an… (read more)