| Query | Cases where the High Court has passed an order in an appeal u/s 260A of the Act and time limit to file SLP has not expired. Whether such cases are covered? |
| Answer | Yes can be filed. Refer Q1 of FAQ dt 4 March 2020 (beneficial view should be taken) (read more) |
Answers to queries on Vivad Se Vishwas Scheme
| Query | In a case time limit for filing of appeal expired before 31 January 2020; and assessee has filed belated appeal post 31 January 2020 with a request to condone the delay in filing of appeal, whether the assessee is entitled to avail the benefit of the Scheme in such a case? Also, what will be eligibility status of the assessee who has filed belated appeal which is pending for admission as on 31 January 2020? Whether in such case assessee would be eligible even if appellate authority has dismissed the appeal as being time-barred by an order passed after 31 January 2020? |
| Answer | If appeal filed before 31 January 2020 along with condonation and condonation is accepted before 31 January 2020 If condonation of delay is accepted before 31 Janaury 2020, then the same will be covered under the VSV scheme If appeal filed before 31 January 2020 along with condonation and condonation is rejected before 31… (read more) |
| Query | Assessment order is set aside under section 263 due to revision order passed by CIT and consequential order is not passed by the AO. ITAT appeal has been filed against the CIT 263 order and is pending as on 31 January 2020. Whether scheme can be availed for settling issues in the following scenarios: a) Where order u/s 263 has been passed by the CIT with specific directions – b) CIT 263 order has been passed with general directions from CIT – c) CIT 263 order has been passed with general directions from CIT and the consequential AO order has been passed on 15 February 2020 (ie before filing the declaration) – |
| Answer | (a)Where order u/s 263 has been passed by the CIT with specific directions ? Ans :It should be possible to avail VSV scheme for such order as ‘disputed tax’ can be determined. There are many other situations stated in VSV or FAQ which are eligible to opt for VSV and for which workable manner of determination… (read more) |
| Query | In a case, where section 263 revision notice is issued to the taxpayer and no revision order has been passed till 31 January 2020 but is passed later (say 15 February 2020 ie before filling the VSV declaration). Whether such an order is eligible for settlement under the VSV scheme? |
| Answer | Notice under section 263, is specifically not covered within definition of Appellant under section 2(1)(a) of the VSV, Act (read more) |
| Query | Whether taxpayer is eligible to avail VSV where decision was orally pronounced by Court as on 31 January 2020, but formal appellate order was passed post 31 January 2020? |
| Answer | Where the matter is decided by the Court as on 31 January 2020 and order is pronounced, the said matter is no longer pending before that Court. However, time limit to file appeal before the higher appellate forum is pending and same will be considered as deemed appeal as on 31 Janaury 2020 [not applicable in… (read more) |
| Query | a) Whether taxpayer is eligible to avail VSV where matter was fully heard by appellate forum as on 31 January 2020, but appellate order passed post 31 January 2020 but before filing the declaration? Whether FAQ 50 (for giving effect to appellate order passed for comuting disputed tax liability) and FAQ 25 (for giving effect to rectification order passed for comuting disputed tax liability), will be applicable in this scenario as well? |
| Answer | There is ambiguity in the FAQ’s in respect of this aspect. Intention of the legislature looks to be that if hearing is concluded before or after 31 January 2020 and the order is received after 31 January 2020 but before filing the declaration, then Since appeal is pending as on 31 January 2020; Therefore, disputed… (read more) |
| Query | Where draft order has been passed by the AO and no objections have been preferred to the DRP and time limit to pass the final assessment order has not expired. Whether such cases are covered? |
| Answer | Yes. Disputed tax to be computed based of draft assessment order and time limit to file objection with DRP is not expired should be mentioned in declaration. (read more) |
| Query | 5. Assessee wishes to settle year 1 and 2 under the appeal. Where year 1 is settled under VSV scheme it will result into refund (due to taxes paid earlier) and there is a demand in year 2. |
| Answer | There is no clarification available in amended Act/ FAQ. Our suggestions In such situation, flexibility may be given to the taxpayer to file single declaration for multiple assessment years so that demand and refund under VSV may be adjusted. Further, where taxpayer has filed separate declaration for each assessment year, facility may… (read more) |
| Query | In case of taxpayer, an addition has been made, whereby demand of Rs.10 lakh is raised including interest of Rs.3 lakh. The taxpayer has filed appeal before CIT(A), which is pending as on 31 January 2020. The taxpayer has paid the entire demand including interest due. If the taxpayer settles the matter under VSV Scheme and tax due under VSV is settled against the demand already paid by taxpayer, whether taxpayer will be eligible to get refund of tax (including interest)?? |
| Answer | Though taxpayer has paid entire tax and interest, the appeal is eligible for settlement under VSV. It appears that there will be no separate challan for VSV payment but the same tax payment challan is to be used. It is likely that direction may be given to the field officers to update the tax records. Where… (read more) |