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

Although CIT(A) has accepted & acknowledged my appeal withdrawal letter but due to change in their jurisdiction, they have forwarded to their HO for necessary action. Should I wait for revert from their HO for a copy confirming withdrawal of appeal or file its acknowledged copy with form 4 or should I query this to my AO ?Thanks
Answer In respect of matter 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 CIT(A), if the appeal is pending before CIT (A). If the appeal is pending before the ITAT the assessee… (read more)
Query

Dear Sir/ Mam

I have a query regarding the following;

1. No of days which CIT takes to approve Form 1 and 3

2. Is it necessary to request the department to drop the case before the acceptance of Form-1 of VSV scheme, because as on the due date VsV scheme is still not accepted.
Answer The Designated Authority has to pass  the order within reasonable time .   It is not necessary to inform till the receipt of the certificate from the competent authority.   (read more)
Query

ITAT has disposed the appeal without discussing one of the grounds of appeal in the year 2016.MA was files in 2016 u/s 254(4) which is pending till date. Now the question is whether the adsense can log for VSVS
Answer Please refer   Q. .No 61 . The MA can be settled under the Scheme only if the same is dismissed in limine i.e. at the beginning of the proceedings. This has been clarified at FAQ No. 61 of CBDT Circular No. 21 of 2020 dated December 4, 2020.  Rectification u/s 254 (2) is continuation of appeal… (read more)
Query

In a case where search assessment is originally completed under section 143(3) rws 153A no additions were made. Subsequently the asseassment was reopened on basis of information recd from Inv Wing reg bogus penny stock. The addition is made in reassessment and appeal againt this reasst is pending. The assessee is falling in definition of search case. what will be the rate of tax 100 or 125%?
Answer According to us the reassessment is on account of reassessment and nothing to do with search proceedings hence the  rate of tax will be 100% and not 125% (read more)
Query

Quantum appeal was decided against the assessee and some enhancement was also made by the CIT (a). now appeal filed before ITAT. In the mean time penalty was also levied by AO on the instruction of CIT. Appeal filed before ITAT. How to file VS and also advise whether two separate application needs to be filed.

Answer One application will have to be made for settling the quantum of appeal and the assessee has to give the information of also penalty . Once the quantum appeal is settled the penalty will also be waived (read more)
Query

Quantum appeal is pending but assessee has not filed appeal against penalty order. Assessee is preferring to go for V to V for quantum appeal. Then what is the outcome for the penalty demand
Answer Once the quantum is settled penalty levied  which are related to quantum appeal , will also be waived . (read more)
Query

it is not a search case and so in those columns we have noted as ZERO
but error is
Fill Tax payable amount in search case payable before 31.03.2020 and after 31.03.2020.
Answer There seems to be technical error .  You may try again to fil the form . In case difficulty , please contact the designated authority  they will guide immediately . (read more)
Query

THE ORIGINAL ASST WAS COMPLETED U/S 143(3) AND REFUND WAS DETERMINED IN THE YEAR 2016.HOWEVER REFUND WAS NOT PAID.
THEREAFTER 154 WAS SOUGHT FOR MISTAKE APPARENT ON RECORD. THE 154 ORDER IS ALSO ACCEPTED AND REFUND WITH INTEREST 244A IS DETERMINED. SINCE THE REFUND IS MORE THAN ONE LAKH, IT IS SENT TO JCIT OFFICE FOR APPROVAL. THE ASSESSEE NEEDS TO FILE UNDER VSV SCHEME.
IF THE ASSESSEE FILES THE APPLICATION UNDER VSV, WILL THE INTEREST 244A DETERMINED U/S 154 BE ANNULIFIED, SINCE THE VSV CONTEMPLATES, NO INTEREST WILL BE GIVEN FOR TAXES ALREADY PAID
Answer The Act is silent on this issue; it can be assumed that the interest does not have to be refunded. As the collection only refers to disputed tax amount and waiver of  interest. If the interest is wrongly granted the revenue may pass an order for refund of interest .   (read more)
Query

MATTER RELATES TO AY 2011-12
THE SAME WAS DISMISSED ON 23/12/2020
ARE WE ELIGIBLE FOR 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

There is an item in the Assessment order under Appeal which is apparently incorrect and is eligible for Rectification under section 154. However since the Appeal has been filed contesting all additions no rectification was preferred. Is it possible to correct obvious mistakes in the Assessment order while applying for the VsV scheme ?
Answer The assessee may have to request  the  Assessing the Officer to pass the rectification order . In case the rectification order is not  passed the  Assessee may  approach  High Court by filing writ petition . It may  be desirable to file the Application  by correcting the obvious mistakes . In case the designated authority rejects… (read more)