| Query | I submitted my appeal with CIT (A) 28.01.2020 for Ay 2017-18 |
| Answer | Since the CIT(A) is pending as on 31 January 2020, the same is eligible for VSV settlement. However, only one ground out of two were taken in appeal filed on 28 January 2020. In this case, the taxpayer can take a chance by filing additional ground before the CIT(A). Taxpayer should follow-up with the CIT(A) for admission… (read more) |
Answers to queries on Vivad Se Vishwas Scheme
| Query | If assessment order passed on 24.12.2019 ex-parte u/s 144 and same was delivered on email not accessed by assessee and hard copy of the order returned back to AO due to wrong address, certified copy received on 15.3.2020, can such assessee go for VSV? |
| Answer | The assessee has accepted that the order was forwarded by e mail on the mailing address provided by him but he had failed to access the e mail in time . The service of an order electronically by an e-mail is a valid service as per s.282 , particularly clause( c ) of sub-section(1) and… (read more) |
| Query | Assessee had been running an industry which was locked out and fuel material lying unusable was sold in cash in period prior to ‘note bandhi’ was held as non genuine by AO and addition has been made u/s 68. Appeal is pending. For the sake of settling dispute if party chooses VSV then in that event whether it will be justified to revise books of accounts reversing cash sales not accepted and its effect into inventory of goods (i.e adding back quantity sold earlier not accepted as genuine) and such revalued stock in revised accounts can be allowed to be treated opening stock next year. Is there any other problem in doing so? |
| Answer | From our understanding, if the amount was disclosed in sales and tax has been paid on profit earned, the same cannot be taxed again under section 68 of the Act. Therefore, prima facie the case seems to have merit. If the assessee avails the benefit of the scheme. Whether consequential entries in the books of account can be… (read more) |
| Query | MY QUERY IS AS UNDER MY CLIENTS APPEAL FOR A.Y 13-14 IS PENDING BEFORE TRIBUNAL AND HE DONT WANT TO TAKE BENEFITS UNDER VSV AND WANT TO CONTINUE THE APPEAL, BUT PENALTY ORDER FOR A.Y 13-14 WAS PASSED BY ITO AND SAME IS PENDING BEFORE CIT (A) AND HE WANT TO TAKE BENEFIT IN VSV FOR ONLY PENALTY ORDER CAN HE TAKE BENEFIT, PLEASE GUIDE AND IF ANS IN FAQ PLEASE SHARE, YOUR REPLY IS HIGHLY APPRECIATE, WITH BIG THANKS WITH BEST REGARDS |
| Answer | As per Question No. 8 of CBDT Circular No. 9 of 2020 dated April 22, 2020, it would not be possible for the appellant to apply for settlement of penalty appeal only when the appeal on disputed tax related to such penalty is still pending.? Q .8 reads as under imagine a case where an appellant desires to settle concealment penalty pending… (read more) |
| Query | Which are the cases the assessee should opt for the scheme ? |
| Answer | There cannot be general guidelines , one has to take the decision considering the facts of each case . One may consider following issues may be worth settling ; -Honourable Tribunal in many of the matters held that no disallowance u/s 14A of the Act can be made in respect strategic investments however the Honourable Supreme… (read more) |
| Query | For instance, the statutory period for filing of appeal has not completed as on January 31, 2020, making the appeal a deemed appeal for the purpose of VSVA, but the assessee was not able to file the appeal within the stipulated time on account of COVID-19. What would be the situation them? |
| Answer | It is pertinent to refer to the decision of the Hon’ble Supreme Court in the case of Suo Motu Writ Petition (Civil) No(s).3/2020 dated March 23, 2020 www.itatonline.org wherein it has been held that to ease the difficulties faced by the litigants and their lawyers across the country in filing their petition/ applications/ suits/ appeals, irrespective of the… (read more) |
| Query | ITAT has set aside the matter partly to the CIT (A) and one issue before the AO. The AO gave effect to the order of the Tribunal, and confirmed the addition against which separate appeal is pending before the CIT (A). The asseessee desires to avail the benefit of the scheme in respect of only the issues set aside to the CIT (A), matter is not taken up for hearing. Can the Assessee avail the benefit of the scheme? |
| Answer | In such a scenario, the assessee should be permitted to treat the matter set aside to the CIT(A) as different from the appeal against the order of the Ld. AO as both appeals emanate from different orders of the AO. The assessee can avail an option to declare either of the two appeals or both under the VSVA.… (read more) |
| Query | An assessee seeks to file a declaration for settlement of his dues payable out of the orders of penalties levied u/s 271D and 271E for violation of the provisions of s. 269SS and 269T. The assesssee has filed appeals against such order before the specified date. |
| Answer | Clause (i) of s. 2 defined the term ‘disputed penalty’ to mean a penalty determined in any case under the provisions of the Act where such penalty is not levied in respect of disputed income or tax and an appeal has been filed in respect of such penalty. The penalties in question satisfy the requirement… (read more) |
| Query | A Declaration filed by the assessee under the scheme for settlement of tax arrear arising out of the assessment of income under an order passed u/s 143(3) is rejected by the authorities on the ground that he was prevented from filing such a declaration under the scheme by virtue of clause (ii) of s.9(a) which disentitles an assessee where a prosecution is initiated u/s 276B for violation of TDS provisions for the said assessment year. Please advise |
| Answer | An assessee is disentitled under clause (ii) of s.9(a) to file a declaration where a prosecution is initiated on or before the date of declaration. On an apparent reading of the clause(ii) in isolation nto in the context one would agree with the authorities however, on a closer reading of s.9 one would gather that it is… (read more) |
| Query | In an appeal, the Commissioner(Appeals) has allowed the claim of the assessee that his income be taxed at the concessional rate u/s 112A instead of the MMR as was done by the AO. The appeal by the Income tax Department to the Tribunal is pending for disposal. The assessee wishes to settle the dispute under VSVS and seeks your advise about the manner of computing the tax payable by him under the scheme. |
| Answer | The case of the assessee satisfies all the conditions of the scheme . The tax payable under the scheme by the assessee us should be reduced by one-half as per the Proviso to s.3 of the Scheme. In other words the assessee would be entitled to get a further concession in rates to the concessional already… (read more) |