| Query | In how many Days can we expected the order for withdrawal of appeal from ITAT & CIT .. So that we can file form -4 of VSV Scheme |
| Answer | Please refer Circular No 9 of 2020 dated 22-4-2020 Q. No 43 . and answer by the CBDT wherein the CBDT clarified that , where the assessee has made request for withdrawal and such request is under process , proof of request made shall be enclosed . It is the designated Authority has to issue the certificate . Even for department appeal the assessee has to write to the ITAT giving proof of filling an application under Vsv Scheme . The ITAT will pass an order dismissing the appeal of the revenue and treat the appeal as withdrawn . The querist may refer Bhimaas Engineering and Projects Pvt Ltd v. Dy.CIT ( 20210 430 ITR 500( Mad) (HC) . Normally in Mumbai the ITAT fixes the hearing with in seven days of filing an application before the ITAT and pass the order on same day. As regards the matter pending before the CIT (A) mere acknowledgement showing an application for withdrawal is sufficient .
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| Query | Assessee was assessed u/s 147 read with 143(2) and opted for Scheme, but DA issued Form 3 under terms of FAQ 70 by referring the assessment as search case.. is there any development on the cause??? |
| Answer | According to us the interpretation of the CBDT is not in accordance with provision of the VSV Act. A Writ petition is filed before the Bombay High Court in Sushil Bhatia HUF v .PCIT ( WPNO. (L) (No. 4666of 2021 dt 23 -2 -2021 . Before the Bombay High Court Delhi High Court order in Ashsih Saraf v .PCIT dt 15 -2 -2021 was relied . The matter is adjourned to 17 -3 -2021 . We hope the Court may decide on 17 -3 -2021 . Similar petitions are filed before the Delhi High Court In Prime India Pvt Ltd v .PCIT and ors WP NO. 2579/ 2021 the interim order was passed on 25 -2 -2021 , the matters are kept for hearing on 4 -5 -2021 . The assessee may file writ before the High Court .
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| Query | I have filed form 1 and 2 and also got form 3 from the department. I have paid the part liability before filing of form 1 & 2. But while filing form 1 due to oversight mistake I did not disclosed the part payment paid by me. So as now I am filing form 4 I mentioned the previous challan details paid by me and also I paid remaining liability. But now when I am filing Form 4 an error is appearing stating that “date of payment of tax should not be before filing of Form 1 & 2”. So what should I do because I have paid 60% of the liability before filing of Form 1 & 2 but system is not accepting the payment before filing Form 1. Is there any remedy. Please help. |
| Answer | Please refer CBDT circular Q. No. 89 and answer given by the CBDT . As per the clarification issued by the CBDT ,Declaration filed by the CBDT can be revised any number of times before the DA issues a certificate under section 5(1) of Vivad se. Vishwas . It may be desirable to file revised declaration .
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| Query | I had applied for VSV scheme and it was rejected stating that no appeal is pending as on 31.01.2020, however I had filed an appeal with condonation of delay and I had received notice from NEC Delhi also either to opt for VSV Scheme or attend the hearing. Since my Appeal is admitted as I received the Notice, then why my Application was rejected? pl help |
| Answer | Please refer Circular No 21 /2020 dt 4 -12 -2020 Q. No 59 and answer given by the CBDT . According to CBDT if delayed appeal is filed and appeal was admitted before 4-12 -2020 before filing of the declaration , such appeal will be deemed to be pending as on 31 st January 2020. On the facts of the Querist , it seems the CIT (A) has not passed an order condoning the delay. The querist may have to approach the High Court by filing Writ petition .
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| Query | We’re in receipt of Form 3, wherein both, assessee’s and income-tax department’s appeals are being settled. In order to file Form 4, proof of withdrawal of appeal is required. We can withdraw our appeal pending at ITAT, how to attach proof of withdrawal of income-tax department’s appeal? Is is required to be settled by the assessee only? |
| Answer | Please refer Circular No 9 of 2020 dated 22-4-2020 Q. No 43 . and answer by the CBDT wherein the CBDT clarified that , where the assessee has made request for withdrawal and such request is under process , proof of request made shall be enclosed . It is the designated Authority has to issue the certificate . Even for department appeal the assessee has to write to the ITAT giving proof of filling an application under Vsv Scheme . The ITAT will pass an order dismissing the appeal of the revenue and treat the appeal as withdrawn . The querist may refer Bhimaas Engineering and Projects Pvt Ltd v. Dy.CIT ( 20210 430 ITR 500( Mad) (HC)
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| Query | Can i opt out / withdraw from VSV scheme after issuance of certificate / order in form 3 ? OR have to pay tax as per form 3 compulsorily ? |
| Answer | The querist can opt out, however if taxes under the Vsv Act the assessee will not get the refund. Please refer circular No . 9 /2020 dt 22-4 -2020--Q, No . 42 and answer given by the CBDT, which state that any amount paid in pursuance of a declaration made under the Vivad Se Vishawas shall not be refundable under any circumstances .
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| Query | One of the cleint is Surveyed as per the notice issued by the department on date of survey. On same day, the house of the Director and also the business premises of the associate concerns was searched. |
| Answer | Querist case has to be treated as case of survey and not search . We presume there was neither any warrant in the name of the assessee nor the notice was issued under section 153C of the Act . Please refer Circular No . 21 of 2020 dt .4-12 -2020 , Q. No 70 and Answer given by the CBDT. Q. 70. If the assessment order has been framed in the case of a taxpayer under section 143 (3) /144 of the Act based on the Search executed in some other tax payers’s case , whether it is to be considered as a search case or non -search case under Vivad se Vishwas ? Ans . Such case is to be considered as a Search Case . According to us the interpretation of the CBDT is not in accordance with provision of the VSV Act. A Writ petition is filed before the Bombay High Court in Sushil Bhatia HUF v .PCIT ( WPNO. (L) (No. 4666of 2021 dt 23 -2 -2021 . Before the Bombay High Court Delhi High Court order in Ashsih Saraf v .PCIT dt 15 -2 -2021 was relied . The matter is adjourned to 17 -3 -2021 . We hope the Court may decide on 17 -3 -2021 .
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| Query | Form is asking appeal reference no/ acknowledgement no. But, the appeal was not filed. What is to be filled in this column in this case? |
| Answer | As per section 2 (1)(a) of The Direct Tax Vivad Se Vishawas Act , 2020 , the appellant means whose appeal is pending as on specified date , ie 31 st Day of January 2020 . Please also refer Circular No 9 /2020 dt 22 -4 -2020 Q. No .1 and answer given by the CBDT . As per the Vsv Act , the appeals which are pending before the specified Authority as on specified date i.e. 31 – 1-2020 is only eligible for taking the advantages of the scheme . If appeal was not filed by the assessee they are not eligible to file declaration under the Scheme .
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| Query | What is the remedy when the designated Authority determined wrong amount of Disputed Tax and amount payable under DTVSV Act 2020 in Form No. 3. |
| Answer | Please refer question No Circular No. 9 /2020 dt 22 -4 2020 Q.No. 46 . Whether DA can amend his order to rectify any patent errors . Ans . Yes , DA shall be able to amend his order under section 5 to rectify any apparent errors . Please also refer CBDT circular Q. No. 89 and answer given by the CBDT . As per the clarification issued by the CBDT ,Declaration filed by the CBDT can be revised any number of times before the DA issues a certificate under section 5(1) of Vivad se. Vishwas .
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| Query | In one of my clients case assessment was u/s 143(3) was completed and demand was createda sunder : Less : Taxes Paid Final Details : Total tax and The Disputed Tax QUESTION : |
| Answer | The Tax calculated by the Designated Authority seems to be wrong . The Assessee can make an application for rectification or may file revised declaration . Please refer question No Circular No. 9 /2020 dt 22 -4 2020 Q.No. 46 . Whether DA can amend his order to rectify any patent errors . Ans . Yes , DA shall be able to amend his order under section 5 to rectify any apparent errors . Please also refer CBDT circular Q. No. 89 and answer given by the CBDT . As per the clarification issued by the CBDT ,Declaration filed by the CBDT can be revised any number of times before the DA issues a certificate under section 5(1) of Vivad se. Vishwas .
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