| Query | Scrutiny assessment was completed u/s 143(3) based on information from Inv wing (Penny STock case). The Form3 has been received calculating Tax under VSV @ 125%. Does the Circular issued on 23rd mar clarify the FAQ 70 for levying 100/125% tax. The designated CIT is of the view that even after the circular 125% should be levied. WHats the latest update on this matter. |
| Answer | CBDT issued Circular No. 04 /2021 dt 23 rd March 2021 they have clarified that , answer given in Q. No .70 is applicable to Search cases only . The assessee need not pay 125% . The CBDT has modified their earlier answer . The Assessee may write to the Designated Authority to send revised challan as per the new circular dated 23 -3 -2021 .
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| Query | can we put TDS default in vivad se vishwas scheme Can compnay accountant directly file vivad se vishwas scheme form |
| Answer | VSV Scheme is ended on 31 -3 -2021 hence the question became academic . The form has to be signed by the person who is competent to file the return . Accountant cannot sign the form on behalf of the Company . It has to be signed by Managing Director . In case there is no Manging Director any Director can sign the declaration under VSV Act. |
| Query | I have received form 5 wherein refundable amount, when department will issue refund anount or do i need to take any action to get the refund |
| Answer | The assessee need not take any action .The assessee may have to verify whether the amount is correctly determined or not , if there is any mistake the assessee may write to the concerned authority for rectification of mistake .
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| Query | The Company has paid taxes under MAT. Even after accepting the disputed income tax is payable under MAT. While settling the disputed income under Vsv the company inadvertently not filled up Schedule -D and instead fill schedule A with tax liability NIL. Effectively the as taxes were payable under MAT provision no tax under normal provisions were required to be paid. while merely MATC was required to be reduced. Now DA has issued FORM -3 with a demand. |
| Answer | Please refer CBDT Circular No 21 /2020 dt 4-12-2020 dt Q. No 89 and Answer given by the CBDT , which clearly state that , declarant can revise the declaration any number of times before DA issues a certificate under section 5(1) of the Act . It may be desirable file rectification application . The Designated Authority has power to rectify the form .3. The assessee may approach the Designated Authority .
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| Query | Dear Sir/Madam, our case was pending with CIT (A) for additions made by AO. for those years which is pending with CIT (A) 234A, B & C Interest was not paid. so Interest should be paid only 25% or Full Interest to be paid. please advise |
| Answer | We presume that the assessee has filed an application under the VSVAct against quantum of appeal . Once the quantum appeal is settled the assessee need not pay the interest .However if only interest appeal is pending the assesssee may have to settle at 25%. .Now it became only academic , as the scheme is closed on 31 -03 -2021 . |
| Query | Assessee submitted valuation report as per Rule 11UA determining valuation of share at Rs.32/- per share. The Assessing Officer calculated Value of share as under: – A + B divided by number of shares (c). The value came to Rs.22. The Assessing Officer made addition of Rs.10 i.e Rs.32- Rs.22 in the hands of the company on the number of shares allotted by the company u/s 56(2)(viib). Please let us know whether the addition is justified. Any case law in support of the assessee. Please guide us how to proceed further. |
| Answer | The assessee can follow Discounted Free Cash Flow Method or Net Asset Value method . Unless the AO the Assessing Officer had not pointed out any flaw in the method of calculation of the value of shares the AO cannot change the method . CIT v. VVA Hotels Pvt Ltd (2020)429 ITR 69/( 2021) 276 Taxman.330 (Mad)(HC) In ITO v. Ashoka Industries Ltd. (2020) 185 ITD 629 (Cuttack) (Trib.) ), the Tribunal held that , it is prerogative of assessee to estimate fair market value of shares issued by it by adopting one method out of two methods i.e. discounted cash flow method or book value method, and that revenue authorities cannot force assessee to adopt particular method for valuing fair market value of share . It seems the addition made by the AO is not in accordance with law.
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| Query | Hello sir any notifications or is there of any chances extension of payment of amount under vivad se vishwas scheme due to the lockdown and other issues faced or any sort of payment extension we can expect? |
| Answer | The CBDT may not extend the date further. If payments are made after 30-4 -2021 , the assessee may have to extra amount as per the scheme . Last date for payment of tax with extra amount is not yet notified . |
| Query | Respected Sir, Submitted form 4 and made payment in Jan 2021 first week. Status showing form 5 awaited from CIT. Met compliance officer in early March and was told 2-3 weeks as form 5 yet to be issued to all. Add to it section 250 notice from CIT Appeal NFAC received 5th time asking for form 5. Questions: 1 Unable to meet officer due to lockdown. what to do ? Can follow up letter be sent via portal (to whom) or via email (from where to get) or any other option you suggest? 2. What if they do not issue form 5 at all ? Is it possible? What is legal remedy – worst come worst scenario after written follow up with CIT and chief commissioner CBDT? Please elaborate in detail. Request your help and guidance in this matter. |
| Answer | The Designated Authority will issue Form 5 in due course of time . The assessee may write to the Chairman CBDT Shri Pramod Chandra Mody e mail is , chairmanabcbdt@nic.in . The assessee has only legal remedy is file writ petition before High Court .
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