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

WHILE FILLING V V APPLICATION FORM THERE IS A DROPDOWN WINDOW FOR INDICATING UNDER WHICH SECTION ORDER IS MADE.BUT 234E AND 206 ARE THERE.BUT IN FAQ 234E IS INCLUDED.HOW TO PROCEED
Answer Please write to designated authority asking for clarification or to make necessary changes in the  form or portal .  If no response is received within reasonable time  one may approach the High Court by filing writ petition . (read more)
Query

Respected Sir,
I am facing an issue in filing Form 1 of Vivad se Vishwas Scheme.
As per FAQ’s released by CBDT on 22.04.2020, it was clarified by Q 29 that credit for earlier taxes paid against disputed tax shall be allowed. After giving effect to taxes paid against disputed tax, net amount payable/ (refundable) by the declarant is determined.
In Form 1 – Part E, details related to payments against tax arrears are required to be filled. For the same, we need to fill the date of payment of tax, BSR Code and amount.
In my case there is TDS credit which can be adjusted against disputed tax. However, there is no option available in the Form to fill the TDS Credit. It cannot be filled in Part E as there is no date of payment or BSR Code for TDS credit.
Thus, I wanted to know under which Schedule details of TDS credit can be filled. Can TDS credit be adjusted while mentioning disputed tax in Schedule I of the Form.?
Answer If form no 26AS shows the credit , the assessee can adjust the credit . It may  desirable  to  approach the designated authority asking for clarification . If designated authority does not respond  with in  a resobale time the assessee may approach High Court by filing Writ petition.    (read more)
Query

We have to file an application under vivad se vishwas scheme for demand in TDS cases. Order u/s 200A/201(1)/201(1A), and Penalty order u/a 271C, but when we file the application these sections are appearing in portal(means where it is asked to furnish the details of order passed under section….there these sections are not available. How should we proceed.

Answer The assesee or its representative should approach their respective designated authority. In case no response  is received one may approach the High Court by filing writ petition . (read more)
Query

Can I still go for Vivad se Vishwas scheme when the CIT (A) has passed the order in May, 2020. Appeal was filed in 2015.

Since the Appeal was pending with CIT(A) on the designated date, i.e., 31-01-2020.

Kindly clarify.
Answer If the CIT (A) has passed the ex parte order without giving an opportunity of hearing , the assessee should file an  rectification application before the CIT(A) to rectify the order . The assessee can also file an appeal to Tribunal on the grounds of violation of principle of natural justice and make an application for… (read more)
Query

Recently, FM announced that the date of payment of disputed tax etc. without extra payment under the scheme has been extended till 31.12.2020. My question is whether the date of filing of online Form 1 has also been extended or that remains till June 30?
Answer The date of filing & beneficial payment under VSVA was extended to June 30, 2020 vide Finance Ministry issues Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated March 24, 2020; However, as per the press release dated May 13, 2020, the extension to of beneficial payment is extended to December 31, 2020. As  the scheme… (read more)
Query

While uploading encountering error, Furnish Valid amount in case of search cases” where i am furnishing declaration relating to non-search case.

What values are required to be submitted as it is neither accepting Zero nor Blank.

Thanks
Answer Please contact the designated authority , they will clarify . Many such difficulties are faced by the assesses the authorities may rectify the mistake or may issue the clarification at the earliest. (read more)
Query

The assessee fulfills all the criterias for filing of declaration under VSV Act.
However, in Feb, 2020 assessee received a summon from SEBI Special Court Mumbai for same issue which was involved in appeal. As per the notice the his attendance was enforced to answer a charge u/s 26(1) r.w.s 24(10 and section 27 of SEBI Act, 1992 r.w.s.193 of Code of Criminal Procedure for Violation of section 129A) of SEBI Act and Regulation 3(a), (b) , (c), (d) and Regulation 4(2)(a), (e) of SEBI (Prohibition of Fraudulent and unfair trade practices).
Will assessee still be eligible for the scheme or will he be covered by exceptions as provided in section 9 of DTVSV Act, 2020

Answer As we understand, the assessee fulfils all the criteria to be eligible under VSVA. Section 9 of VSVA is an exhaustive list to whom the Act shall not apply. As the case of the assesee does not fall under any of the criterion under section 9 of VSVA.  The assessee can avail the benefit of… (read more)
Query

One of my relatives has assessment completed ex-parte. Unfortunately, none of his tax advisors have represented his case before CIT(A) and ITAT, eventhough appeals were filed before them in time.

HON’BLE ITAT has passed order ex-parte with a direction that the matter may be heard again if the assesses proves genuineness of not being able to represent facts and plead his case before ITAT.

He has filed MA before ITAT with affidavit from his tax consultant confessing negligence on his part for nor effectively handling all the tax related litigation before authorities. Such MA is pending to be disposed of by ITAT as on the cut off date.

Can he take benefit under this scheme in so far as disputed tax involved in the order which is subject matter of the MA,
Answer If the ITAT has set aside the matter to CIT (A) to decide the matter on merit  the  appeal is pending as on the specified date.ie 31-1-2020 . If the appeal is set a side to the AO , it is desirable to file an Miscellaneous application before the Tribunal and pray for recalling of the order.… (read more)
Query

If my client has not opned the traces site for one year and ex party order is given by CIT-A and came to know after 31/1/20 , hence could not able to file appeal In ITAT. Wants to go in VsV.
Answer It is desirable to  file an appeal before the Appellate Tribunal with condonation of delay . Request the Honourable vice president to fix the appeal for hearing only on condonation of delay. Once the delay is condoned it relates back  and the assessee  can avail the benefit of the VSVA.  (read more)
Query

One of My client has received an Order from AO U/s. 143(3) and the timelimit for filing appeal as on 31-01-2020 has not expired.But Appeal has not been filied till date.Will this case be eligible for the scheme.
Answer There is no clarification for cases where deemed appeal is not filed. However, going by the language of VSVA strictly; The case is eligible for VSVA and there is no express language dictating otherwise. However , it is desirable to file an appeal now with application for condonation of delay. The assesses should request the… (read more)