| Query | The Assessment order received for AY 13-14, revises the Total Income to Rs -8706142 from -14499445; after adding 2 incomes under sec 69C to the return filed by the assessee. A notice of demand is also received showing outstanding tax to be paid on those 2 incomes. An appeal has already been filed against the same. Kindly suggest as to what can be done regarding this notice under Vivad se vishwas scheme in form 1. Will the additional tax be payable even though the Total Income is -ve as per order? |
| Answer | As per Rule 9 of VSV Rules, 2020, i.e. Manner of computing disputed tax in cases where loss or unabsorbed depreciation is reduced. Where the dispute in relation to an assessment year relates to reduction in loss or unabsorbed depreciation to be carried forward under the Income-tax Act, the declarant shall have an option to –… (read more) |
Answers to queries on Vivad Se Vishwas Scheme
| Query | Form 1 & 2 has been filed after giving effect to the rectification order passed by the AO. However, in the said Form we could not find any column to the mention the details as per the rectification order. But the designated authority did not consider the rectification order and determine the amount payable under DTVSV as per the original assessment order u/s 143(3) and thus issued the Form 3. Kindly, advice what is required to do this context. |
| Answer | Make an rectification before the designated authority to rectify the mistake . The assessee can also file revised form . In case the Designated authority does not rectify the assessee can file a writ before the High Court (read more) |
| Query | Assessment Order for AY 2013-14 u/s.143(3) dt. 29-02-2016 passed after making addition of Rs.55,53,560/- to the returned income of Rs.1,86,000/-. Honb’le ITAT vide order pronounced on 31-01-2020 has set aside the matter back to the AO. AO has not started the assessment proceeding till date. Whether the assessee is ellligible under Vivad Se Vishwas Scheme? |
| Answer | The assessee may not eligible for VSVA as there is no appeal pending on the specified date. However as the period of filing an appeal before High court was not over , one may contend that the provision as deemed appeal , hence it can be tried by filing an application before the competent authority . Please… (read more) |
| Query | If by any reason the process of verification of Form 4 is failed or say if later it comes to knowledge that there was a technical error is filling VSV form. However if the assesee has made the payment of taxes by that time. My question is whether the said payment of tax will be refundable/ adjustable or it will be no refundable/adjustable at all if the VSV process becomes invalid due to some technical reason |
| Answer | As per section 7 of VSVA, any amount paid in pursuance of a declaration made under section 4 of VSVA shall not be refundable under any circumstances. Therefore, it is advisable to rectify Form 4 and contact your designated Authority under VSVA .In case no response is received by the assessee from the designated authority… (read more) |
| Query | A -ve return had been filed by the assessee for AY 2010-2011 having carry forward loss. The assessee received an order, disallowing all expenses claimed in the CY as well as PY b/f losses, and also to pay tax on 8% of gross receipts. A CIT appeal had been filed against the tax on profits(taken by AO as 8% of gross receipts) and the disallowance of brought forward losses of PGBP. The same was partly allowed ( B/F loss allowed). After allowing of the same, the tax on Total Income becomes -ve. |
| Answer | If the assessee desires to settle the issue , the assessee may have to pay the tax in dispute after considering the appeal effect of the order of the CIT (A) . Choice is with the assessee whether he desires to file as per schedule D or A. It may have to be decided considering… (read more) |
| Query | 1) CIT Appeal filed against quantum order for Tax & Interest. |
| Answer | As per Question No. 8 of CBDT Circular No. 9 of 2020 dated April 22, 2020, if both quantum appeal covering disputed tax and appeal against penalty levied on such disputed tax for an assessment year are pending, the declarant is required to file a declaration form covering both disputed tax appeal and penalty appeal. However, he… (read more) |
| Query | Respected Sir, |
| Answer | Yes , the legal heir can file the declaration however the tax has to be paid on the disputed amount , the interest will be waived . The Form can be filled and at the time of verification of the Form, your capacity can be disclosed. In the event of any hardship it is advisable… (read more) |
| Query | If the Assessing Officer fails to rectify error apparent on record, whether a writ can be preferred on the premise that no alternate efficacious remedy is available and the assessee will not be able to file VSVS application if rectification is not permitted. What would be the answer in case, the rectification is summarily disposed off |
| Answer | An appeal is pending before CIT(A), however, the AO did not rectify a mistake apparent on record. As per FAQ 25 of CBDT Circular No. 9 of 2020 dated April 22, 2020, where the rectification order passed by the AO may have an impact on determination of disputed tax, if there is reduction or increase in the… (read more) |