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

Sir, I forgot to get claim of section 54 in relation to one of my property,due to document misplace(uncontrollable circumstances),deductable amount is Rs. 45,00,000.00, so can I get the deduction same in vivad se Vishwas scheme
Answer Vsv Scheme  is  not an amnesty scheme . By  filing the declaration under the  Scheme , the assessee cannot  get the benefit . It may be  desirable to file an application under section  264 of the Act  , or file rectification  before the Assessing Officer .    As per   Article. 265 of the Constitution of India… (read more)
Query

1. The petitioner had filed a revision application u/s 264 of the act before CIT against penalty order u/s 271(1)(c) of the Act.
2. The date of order was 29.04.2013 .
3. The date of petition was 22.03.2017.
4. There was a delay in filing the petition.
5.. The petition was filed along with an application for condonation in delay.
6.. The said petition was pending on the date of announcement of VSV Scheme.
7.. The petitioner filed a declaration under VSVS but the same was rejected by Pr.CIT on the ground that the petition filed u/s 264 of the Act was not in time, The delay has not been condoned and therefore, the application of the assessee was not processed and as on 31/01/2020 no petition is pending.
8. No order has been passed by passed by the PCIT for not condoning the delay or rejection of the petition till the date of announcement of VSVS or submission of application under VSVS by the assessee.
A request to kindly suggest a solution available to the assessee.
Answer It may be desirable to file a writ petition before High Court .  Please refer   unreported judgement of Bombay High Court  Awantika Pratap Singh Morarji v Ashwin Kumar (CIT ) WP No 1691 of 2005 dt 9-07 -2014 dealing with KVSS  honourable High Court has directed the designated authority to grant the benefit of the… (read more)
Query

Dear Sir,

We have gone for an CIT(A) for adding back the directors loan as undisclosed income We have shown all the proof the oder was passed ignoring the 3rd director The AO computed the total income again with ef to CIT(A) ref we filed for rectification u/s 154 .we did notreceived any communication from department should we go for VSV scheme Its is a pvt lt company kindly reply

Answer It seems the  asseessee is in a position to prove the identity , capacity and genuineness  of the  transaction by filing  confirmation  from the Director . it may be desirable to make an application under Rule 46A of the Act , and enclosing all the relevant materials .  The CIT (A)  may get the remand… (read more)
Query

We can not upload the form because of following errors
1. Please enter valid amount under DTVSV in search/non search case on or before/after 31/03/2021 of schedule AI.

Kindly guide.
Answer It may be desirable to approach the designated Authority . Number of declarants are facing similar problems . (read more)
Query

Assessee filed quantum appeal and a penalty appeal for the same assessment year can I opt DTVSV for penalty appeal only. Kindly guide me

With warm regard
Answer As per the scheme and FAQ 8, Circular No 9.  Dt. 22 -4 2020   , which reads as under ;   8.Q. Imagine a case where an appellant desires to settle concealment penalty appeal pending before CIT (A) ,while continuing  to litigate  quantum appeal that has travelled to higher appellate forum . Considering these are… (read more)
Query

We have raised appeal for f.y. 2014-15 before 31 jan 20 I want to apply for vsvs scheme before 31st dec 20 due date if I can’t able to pay amount before 31st March 20 what will income tax dept do this appeal will be continued with income tax or we must pay to the income tax
Answer 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 .As per  CBDT Circular No 18 of 2020 dt 28 -10 -2020  the  Cut -off  date for beneficial payment  under the VSV Act ,… (read more)
Query

Sir,
In the case of my client,in the asstt.year 2011-12 Rs.7,00,000.00 appx. was disallowed on account of loss on sale and purchase of particular shares in the course of her business in trading in shares and demand was created. Transactions were made through Shares broker and all transactions were reflected in Bombay stock exchange for which all contract notes of sale and purchase of shares were produced before the assessing officer. My client is a trader in shares from last 20 years. There were so many transactions in numerous shares and on the closing of the FY the loss of the business was carried over to the subsequent year. Now my query is that if my client pays this demand to settle the litigation of this asstt. year, will she be allowed to carry forward the loss in the subsequent Years which she has done, otherwise she has to pay the taxes in the subsequent years also in which this loss has been given effect? Please advice me.
Regards
Answer It seems the loss is  disallowed on account of genuineness  of transaction . Once the loss is held to be non -genuine the loss will not be allowed to be carried forward . The assessee will not be able to set off the loss in subsequent  years . If the transactions are genuine it may… (read more)
Query

I have filled all the details in Schedule AI. My case is a non-search case and I have filled the tax payable in non-search case before 31.03.2021 (100% tax) and also for tax payable after 31.03.2021 (110% tax). But while submitting the form it shows an error that the tax payable in search cases is not filled.
Kindly help.
Thanks
Answer There seems to be technical error . It is desirable to approach the Designated Authority they will be able to guide and solve the issue . (read more)
Query

One of the client has filed an appeal before the CIT for A Y 2009-2010. The hearing is still pending as the case was remanded back to the AO.
Through oversight application u/s. 154/155 was not made within the prescribed limit of 4 years.
LTCG and BP Income are taxed at the same rate by the AO. The said point alongwith others is taken in appeal.
Rectification is made in November, 2020, though it was time barred.
Q1 : Whether any alternative is available to the client as they want to go for VSVS as the difference between BP Tax and LTCG Tax is much higher.
Answer If the issue is taken in appeal the CIT (A) has  to grant the relief .  If the said ground is not taken in appeal , you may raise the additional ground before the CIT( A), which is bound to consider . As per   Article. 265 of the Constitution of India  which provides that “No… (read more)
Query

Appeal Dismissed by ITAT on 10/01/2020 on account of adjournment of hearing. How to file Vsv. While filing Vsv under whom we can treat it as deemed to be pending

Answer Yes, a deemed appeal is pending as on the specified date i.e. January 31, 2020. Therefore, the assessee is eligible for VSVA. VSVA has not laid any provision to compel actual filing and the same cannot be assumed. Please reefer Q.No 56 and answer  Circular No 21 /2020 dt 4 -2 2020 Q. No 56: Appeal… (read more)