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

Will 234d interest will be waived off while calculating amount payable under vsvs 2000?
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… (read more)
Query

I am secretary of credit co-operative society. The society eligible for the deduction under 80P(2)(a)(i) .Net profit of the society is Rs 50,00,000/- for the Financial year 2019-20. After giving effect of disallowance of Rs 6,00,000/- under section 40A(3) and another disallowance of Rs 4,00,000/- under section 40a(ia),the gross total income comes to 60,00,000/-.
What will be my eligible deduction under section 80P(2)(a)(i) of the income tax act?
Whether it is of Rs 50,00,000/- or 60,00,000/-? is it liable to pay taxes on disallowances?
Answer Reference is drawn to the decision of the Hon’ble ITAT Kolkata Bench in the case of Goghat Thana Large Sized Primary Cooperative Agricultural Marketing Society Ltd. v. ACIT [2018] 100 taxmann.com 460 (Kolkata - Trib.)[30-11-2018] where the Tribunal relied on CBDT Circular No. 37 of 2016, dated November 02, 2016 in the context of enhanced claim of deduction under section 80IA… (read more)
Query

One assessee has submitted an appeal before the Commissioner of Income Tax (Appeals) against the order u/s 144 of the IT Act. After submission of the appeal, the assessee was waiting for the date of hearing. Meanwhile, the Income Tax Officer issued a notice under section 154 of the Income Tax Act and increase the demand previously created under the head interest. There was no compliance of notice under section 154 of the IT Act issued by the Income Tax Officer. Now the question is German in respect of the amount of total demand which has to be filed in the prescribed form of Vivad Se Vishwas No 1. Whether the interest increased by virtue of rectification, subsequently after furnishing of appeal can be the subject matter of the Vivad Se Vishwas. There shall be a mismatch in demand reflected in the appeal and actual demand because in the appeal the amount of tax and interest has to be mentioned. Whereas the present demand is more than the original because the demand has been increased by way of the order passed under section 154 of the IT Act.
The part of increased interest is related to 115 BBE and even in the ground of appeal, this ground has been taken.
Hope you will let me know your esteem opinion.
With regards
Sumitra Maru
Answer Under VSVA, interest and penalty are waived and the declarant has to only settled the disputed tax amount. Therefore, the assessee has to pay only the disputed tax amount. (read more)
Query

If case was pending as on 31.01.2020 ,case was argued and head before itat on 06th feb and decided against .whether we can apply under vivad e vishwash scheme

Answer As per FAQ No. 56 of CBDT Circular No. 21 of 2020 dated December 4, 2020. The assesssee is eligible for VSVA. (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. There was a delay in filing the petition.
4. The petition was filed along with an application for condonation in delay.
5. The said petition was pending on the date of announcement of VSV Scheme.
6. 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

A request to kindly suggest a solution available to the assessee.
Answer  As per FAQ No. 59 of CBDT Circular No. 21 of 2020 dated December 4, 2020. The assesssee should eligible for VSVA.  Merely filing of a condonation of delay application will not suffice, the same has to be condoned . Therefore the assessee may approach the authority concerned  and request in writing to pass the order.… (read more)
Query

I have filed form-1, as per which , i’m suppose to get the refund (as i have already paid the demand amount & later on opted for Vivad se Vishwaas Scheme). What is the procedure to get the refund amount. What details i have to fill in form-4 to get such refund.

Answer Once the form 3 is issued which will confirm the declaration submitted by the declarant. After adjusting the tax to be paid the refund will be issued . In case refund is not granted the assessee can file writ before High Court . (read more)
Query

While passing order u/s 143(3) the AO was not TDS credit.I have filed rectification request for the same.but no revised order has been received yet.Can file declaration after deducting TDS
Answer (read more)
Query

While passing order u/s 143(3) the AO was not TDS credit.I have filed rectification request for the same.but no revised order has been received yet.Can file declaration after deducting TDS
Answer From what we understand, the assessee wishes to file for VSVA after giving TDS credit.  Please request the Assessing Officer to pass  rectification order . In case the rectification order is not passed , the assessee may have to pay the tax on the amount of tax in dispute As and when the rectification order… (read more)
Query

I filed itr for asst year 2008 09 of i incone of Rs 226614.assd u/s (143)

Income assd by different ito u/s 144/147 on Rs 1250000.00 in respect of bogus purchases of rs 1250000.00 no mention of income of rs 226614.00 However final income assesed by ito on rs 1250000.00 after filling revision u/s 264 who remanded case to ito who again assd on rs 1250000.00 u/s 154 as directed by cit
Assesse filed appeal to cit (A) against order u/s 154 .cit (A) rejected appeal against which appeal filed before ITAT which is pending

Question. What income should be shown in application form
Vad se vishwas scheme

Rs 1250000.00as assesd
How to corelate original income of Rs 226614.00 as this has no mention in asst order or any order as reffered above
In IT 30 ito has also deducted the tax assd u/s 143(1)

A k jain 9810033737
Regards
Answer Appeal pending before ITAT i.e. Appeal against CIT(A) order has to be settled under VSVA.  Tax is dispute which is pending before ITAT has to be settled , subject to pendency of appeal as on 31 -1 -2020 . (read more)
Query

Refund issued under section 143(1). While making 143(3) interest allowed under section 244A was withdrawn and 234D was charged on refund enjoyed by assessee. Whether interest u/s 244A and 234D will be charged by Assessing Officer while giving effect of Form 5 or these interests shall be waived.
Tax u/s 143(1) 100000
tds 120000
REFUND 20000
INTEREST 244A 2000

TAX U/S 143(3) 140000
234ABC 5000
244A(3) 2000
234D 500

Amount payable under VSV will be 40000 (140000 – 100000) or it would be 42500 (40000+2000+500)
Answer We presume the valid appeal is pending before Competent authority as on 31 -1 -2020 .  Amount payable will be on the amount on amount of tax disputed in appeal .  Once the amount is settled the interest will be waived and other consequences will follow as per the law . Please read Section 7… (read more)