In Kachwala Gems v. Jt. CIT (2006) 206 CTR 585 / (2007) 288 ITR 10 / 158 Taxman 71 / 196 Taxation 738 / AIR 2007 SC 487 (SC) the Apex Court held that  even though there is always a certain degree of guess work in a best judgment assessment, the authority should try to make an honest and fair estimate of the income and should not act totally arbitrarily.

 In Malpani House of Stones v. CIT (2017) 395 ITR 385 (Raj.) (HC) the Court held that , when income is estimated other additions cannot be made on the basis of entries in the books of account. Also refer , CIT v. Modern Rubber Industries (2013) 218 Taxman 70 (Mag.)(All.)(HC)

CIT v. Hind Agro Industries (Chd.)(Trib.); www.itatonline.org ,if  books are rejected and Gross Profit rate is estimated, separate disallowance of expenses cannot be made  such as 40(a)(ia) of the Act

Also refer ,Circular No 21 of 2020 dt 4-12-2020 , No Q. no 83.If appeal involving issue of disallowance under section 40(a)(i)/(ia) of the Act is settled under the Scheme, whether consequential reli~f will be available in proceedings under section 201 of the Act initiated qua the same payment! deduction.  Ans .No.  ?

It may be desirable to contest in appeal .

As per VSVA, in a case where the dispute in relation to an assessment year relates to reduction of Minimum Alternate Tax (MAT) credit or reduction of loss or depreciation, the appellant shall have an option either to (i) include the amount of tax related to such MAT credit or loss or depreciation in the amount of disputed tax and carry forward the MAT credit or loss or depreciation or (ii) to carry forward the reduced tax credit or loss or depreciation. CBDT will prescribe the manner of calculation in such cases.

Please refer  Circular No 9 of 2020 dt 22. 4 .2020 ,Q.  No 12  If a writ has been filed against a notice issued under section 148 of the Act and no assessment order has been passed consequent to that section 148 notice, will such case be eligible to file declaration under Vivad se Vish was?  Ans : The assessee would not be eligible for Vivad se Vishwas as there is no determination of income against the said notice.

Accordingly the assessee may not be able to take advantages of the Scheme

There is no remedies under VSVA. The declarant can file a Writ Petition before the High Court.

If the assessee wishes the Demand as on Jan 31, 2020 i.e. AO order can be settled under VSVA. Please refer Circular No 21 /2020 dt 4 -2 2020 Q. No 56: Appeal or arbitration is pending with appellate authority as on 31 St Jan 2020 (or time for filing has not expired as on 31St Jann 2020). However, subsequent to that date, and before filing of the declaration, the appeal has been disposed by the appellate authority. Whether it is eligible under Vishwas se Vishwas? If yes, how the amount under Vivad Se Vishwas shall be computed? Answer, Yes. Amount payable under Vishwas shall be computed with reference to the position of appeal or arbitration as on 31st January, 2020

In case of any technical difficulty it is advisable to approach your designated authority under the Act.

As per VSVA, in a case where the dispute in relation to an assessment year relates to reduction of Minimum Alternate Tax (MAT) credit or reduction of loss or depreciation, the appellant shall have an option either to (i) include the amount of tax related to such MAT credit or loss or depreciation in the amount of disputed tax and carry forward the MAT credit or loss or depreciation or (ii) to carry forward the reduced tax credit or loss or depreciation. CBDT will prescribe the manner of calculation in such cases.

One need not attach the documents , but the form has to be filed properly .If there is no acknowledgement no , the assessee may refer the date of filing of appeal . In  case the assessee is not able to  host the form , the assessee may approach the Designated Authority .

Since the appeal is pending before CIT(A), the same is deemed to be withdrawn. There is no requirement to file an application of withdrawal of appeal

VSVA is only with respect to settlement of disputed and not an amnesty scheme. It only provides an option to settle appeals on contentious issues that are neither accepted by the Department nor the assessee.  stating that the accounting entries will be independent and would not be saved by the scheme. The Assessee cannot rectify its ITR after VSVA. The CBDT Circular No 21/20 dt 4-12-2020 Q No 81 reads as under ;  In respect of some loan, addition was made U/S 68 of the Act. Appeal ispending beforeCIT(A) and the assessee is eligible for opting Vivad seVlshwas. After making the payment of tax under Vivad se Vishwas, can the assessee make entries in his books by crediting the said loan in his capital account?

No, Vivad seVishwasis not an amnesty scheme. It only provides an option to settle appeals on contentious issues that are neither accepted by the Department nor the assessee.

It is fair to assume that the accounting entries by itself would not attract the income tax under the regular provisions of the Income Tax Act. However the liability to MAT u/s 115JB for that year would require to be contested if such tax is levied. The issue under the Companies Act and SEBI laws and the listing agreements and of the corporate governance and also of the CSR spends would require to be deeply examined. There are no immunity as  per the scheme.

Yes, under VSVA, interest amount is waived, any amount paid would be set off against disputed tax amount. Therefore, the refund amount which has been adjusted against the order under section 143(3) of the Act has to be given effect against the disputed tax amount. Yes, under VSVA, interest amount is waived, any amount paid would be set off against disputed tax amount. Therefore, the refund amount which has been adjusted against the order under section 143(3) of the Act has to be given effect against the disputed tax amount.