| Query | Whether the settlement is qua issue or qua appeal? Whether there should be tax payable by taxpayer in order to avail the scheme? How to compute disputed tax in loss cases? |
| Answer | The settlement can be done only qua appeal and not issue wise. As clarified by FAQ no 9 of CBDT Circular dated 4 March 2020, taxpayer can opt for VSV scheme, irrespective of whether tax arrear has been paid either partly or fully or are outstanding. In cases where taxpayer has incurred losses, he… (read more) |
Answers to queries on Vivad Se Vishwas Scheme
| Query | Department appeal is disposed of on account of low tax effect. The Cross objection is pending for disposal as on 31-1-2020, can an assessee take benefit of issues pending in cross objection? |
| Answer | In ACIT v. Ajay Kalia (2016) 157 ITD 187 (Delhi) (Trib) held that though the cross objection of the revenue is dismissed because of low tax effect, the cross objection could not be dismissed. Cross objection survives and considered as an appeal. In Badru (Since Deceased) through L.R. and Ors. v. NTPC Ltd and Ors. AIR 2019 SC 3385 the Apex… (read more) |
| Query | Appeal is pending before ITAT as on 31-1-2020, one of the issue raised in the appeal is the issue which was not raised before the CIT (A), Can the assessee avail the benefit of the scheme in respect of entire appeal which is pending before the ITAT ? |
| Answer | Yes . In Jehangir H.C . Jehangir v ITO ( 2015) 229 Taxman 392 ( Bom) (HC) held that issue specifically taken before the AO could not be refused to be considered by Tribunal merely because the CIT (A) did not have any view on it . Order of Tribunal was set aside. Accordingly, the Querist can avail the benefit of VSVA.… (read more) |
| Query | While computing the tax arrear as per S.2 (o) of the Vivad Se Vishwas Act , 2020, whether TDS paid relating to the assessment has to be considered? |
| Answer | Yes , TDS paid has to be considered, dealing with IDS scheme the Delhi High Court held that there is no bar for an assessee or declarant to claim credit of advance tax and TDS paid previously relating to assessment years for which it seeks benefit under. Kumudam Publications P. Ltd. v. CBDT (2017) 393 ITR 599… (read more) |
| Query | The Tribunal has passed the order against, which the rectification is pending, can an assesee avail the benefit of the scheme? Rectification application was pending for hearing as on 30 -01 -2020 |
| Answer | Rectification u/s 254 (2) is continuation of appeal proceedings before the ITAT, hence one may take the view that even when rectification application is pending it can be construed as pending. let us take an example if rectification is allowed the appeal is restored , it relate back the date of filing of an appeal. Hence the… (read more) |
| Query | Appeal before the Income tax Appellate Tribunal (‘ITAT’) was heard on 27th December 2019 and the order is pronounced on 2nd February, can the assessee approach under the scheme |
| Answer | As per Rule 34 (4) of the ITAT Rules, 1963, after hearing the appeal the order has to be pronounced and signed in the Court. Till the order is pronounced and signed the appeal is considered as pending before the Tribunal. Accordingly, the assessee can avail the benefit. The Hon’ble Supreme Court, in the case of Chattisgarh… (read more) |
| Query | The assessee has filed a petition before the Settlement commission, which is pending for admission as on 31st January, 2020, can the assessee avail the benefit of the Scheme? |
| Answer | As per Section 2 (1) b) of the VSVA “appellate forum” means the Supreme Court or the High Court or the Income Tax Appellate Tribunal or the Commissioner (Appeals), Settlement Commission is not covered. As per Section 2(1) v) of the VSVA, a person who has filed an application for revision under section 264 of the… (read more) |
| Query | Department has filed Writ against the order passed by the Settlement Commission, can an assessee file declaration under the Scheme.? If yes how to compute the tax is dispute? |
| Answer | As per definition of S.2(1)(a) , “appellant” means— (i) a person in whose case an appeal or a writ petition or special leave petition has been filed either by him or by the income-tax authority or by both, before an appellate forum and such appeal or petition is pending as on the specified date; Further,As per… (read more) |
| Query | All appeals are covered? What about Writs? |
| Answer | Yes. All appeals are covered by the scheme. Even Writs are covered. (read more) |