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

This section is now closed. Please ask your questions at our new Q&A section
The answers given below are in response to queries asked by other people.
Query

An addition u/s.69 has been made in respect of an assessee and assessee opted for vsv scheme. Whether any non quantum bases penalty will be attracted or not in case of assessee. Kindly guide
Answer As per FAQ No. 80 of CBDT Circular No. 21 of 2020 dated December 4, 2020. The assesssee is not eligible for waiver of penalty under section 271B, 271BA, 271DA etc. They have to be settled separately. It can be understood that penalty imposed on account of non-compliance are not waived along with quantum appeal and… (read more)
Query

whether to withdraw the CIT-Appeal filed by the assessee if yes then how ? If I selected N.A in the option still the form wants the attachment of the proof of withdrawn CIT-Appeal please guide me
Answer In respect of matter before the ITAT & CIT(A) there is no requirement to submit a proof of withdrawal. It is only after getting certificate from the designated authority, the assessee has to intimate to the CIT(A), if the appeal is pending before CIT (A). If the appeal is pending before the ITAT the assessee… (read more)
Query

We have opted for Vivad se Vishwas scheme and want to pay the Tax. What challan should we choose for payment of tax.
Answer :   It will be regular assessment tax challan , with minor head 400 . Write properly the PAN  NO and Assessment year . There is no separate Challan  has been prescribed .   (read more)
Query

is the cash siezed by department under seizer laying with department in PD Account, can be adjusted against amount payable under Vivad Se Vishwas scheme if the assessee informs to adjust it
Answer Finance Act , 2013 has inserted Explanation 2 to section 132B , which reads as under -: “For the removal of doubts , it is thereby declared that the “ existing liability “ does not include advance tax payable in accordance with the provisions pf part C of Chapter XVII “ . As pert the… (read more)
Query

Is there time limit of payment of Disputed tax under Vivad se Viswah. If I received order in Form -3 on 09/02/2021 I can pay it now before 31/08/2021
Answer Last date for payment of tax with extra amount is not yet notified . The assessee can  make payment ,  however the assessee has to pay extra amount  . Please refer CBDT Circular No 9 dt 22-4 -2020 (2020) 422 ITR 131 (St.),   Q . No. 28 and answer given by the CBDT , it… (read more)
Query

Sir my query is, is the application still possible under VSV Scheme ? There is currently no Tab showing at the new Portal. What is the latest position for fresh application ?

Answer Scheme is  not available . NOTIFICATION S.O. 964(E) [NO. 09/2021/F.NO. IT(A)/01/2020-TPL], DATED 26-2-2021 the scheme was extended up tp 31 st March , 2021  ( 2021) 432 ITR 13 (St)    .  However  for the  payment of tax  at concessional rate the period was extended up to 30 th June 2021      (read more)
Query

Dear Sir,

We were not given full credit of taxes paid in Form 3 issued by Deptt. A rectification application was filed and discussions with AO were held wherein the facts were duly explained to his/her satisfaction. However, we understand that as of now there is no provision for revised form 3 to be issued by Deptt. Pls clarify how to get the corrections done so that the process of payment of balance tax be initiated well before 31.08.2021.
Answer The assseee may   write to the CBDT  and also may  file writ before High Court . (read more)
Query

Dear Sir, We have Filed Vivaad Se Vishwas Scheme on 26 December 2020 for reduction of losses and opted for non payment of taxes.

Thereafter, Form 3 has been issued with payment of taxes on 29 December 2020. However, no email communication was received in this case.

How to get Form 3 rectified.
Answer Assessee  may write  to the   Designated Authority for rectification .  If there is any  mistake in calculation   the  Designated Authority may  rectify the same ,  before issue of final certificate u/s 5 (1) of Vivad Se Vishwas .  Assessee  may also write to the Chairman CBDT explaining the  difficulty,   they will be able to guide… (read more)
Query

My vishwaas se vivaad scheme form is still pending on the side of the department..the department is demanding the order for the condonation of delay in filling the appeals.. as the order is not generally send by the departments..I am not having the order for the condonation of delay in filling the appeal…how my vivaad se vishwaas scheme form can be accepted by the department?
Answer Please refer CBDT Circular No .21 /2020 dt 4-12 -2020   Q. 59 . and  Ans . wherein the CBDT has clarified that , if the time limit for filing appeal during the period from 1 st April 2019 to 31 st Jan , 2020 ( both dates included in such period ) and the application… (read more)
Query

Sir I want to fill fresh new form no 1 and 2 declaration form under VSV scheme butin new there is no tab available.
I asked many professional they say that vsv scheme declaration form filling has got over on 31st March 2021 and thereafter time extension is only for payment and not filing new form to close appeal case.
I am confused. Please guidehelp and reply.
Please guide me in this new portal how to fill form no1and 2and submit under VSV scheme.
Answer Please refer  CBDT Circular No 21/ 2020 .  dt  4-12 -2020 .  Q. No 89 and answer given by CBDT . Q.89 . Once declaration is filed by assessee u/s 4 of Viivad Se Vishwas  can the same be revised ? If yes , at what stage of the proceedings will the same be allowed… (read more)