| Query | The Assessment order received for AY 13-14, revises the Total Income to Rs -8706142 from -14499445; after adding 2 incomes under sec 69C to the return filed by the assessee. A notice of demand is also received showing outstanding tax to be paid on those 2 incomes. An appeal has already been filed against the same. Kindly suggest as to what can be done regarding this notice under Vivad se vishwas scheme in form 1. Will the additional tax be payable even though the Total Income is -ve as per order? |
| Answer | As per Rule 9 of VSV Rules, 2020, i.e. Manner of computing disputed tax in cases where loss or unabsorbed depreciation is reduced. Where the dispute in relation to an assessment year relates to reduction in loss or unabsorbed depreciation to be carried forward under the Income-tax Act, the declarant shall have an option to – (i) include the tax, including surcharge and cess, payable on the amount by which loss or unabsorbed depreciation is reduced in the disputed tax and carry forward the loss or unabsorbed depreciation by ignoring such amount of reduction in loss or unabsorbed depreciation; or (ii) carry forward the reduced amount of loss or unabsorbed depreciation. Therefore, the declaration may be filled according to the above options.
|
| Query | Form 1 & 2 has been filed after giving effect to the rectification order passed by the AO. However, in the said Form we could not find any column to the mention the details as per the rectification order. But the designated authority did not consider the rectification order and determine the amount payable under DTVSV as per the original assessment order u/s 143(3) and thus issued the Form 3. Kindly, advice what is required to do this context. |
| Answer | Make an rectification before the designated authority to rectify the mistake . The assessee can also file revised form . In case the Designated authority does not rectify the assessee can file a writ before the High Court |
| Query | Assessment Order for AY 2013-14 u/s.143(3) dt. 29-02-2016 passed after making addition of Rs.55,53,560/- to the returned income of Rs.1,86,000/-. Honb’le ITAT vide order pronounced on 31-01-2020 has set aside the matter back to the AO. AO has not started the assessment proceeding till date. Whether the assessee is ellligible under Vivad Se Vishwas Scheme? |
| Answer | The assessee may not eligible for VSVA as there is no appeal pending on the specified date. However as the period of filing an appeal before High court was not over , one may contend that the provision as deemed appeal , hence it can be tried by filing an application before the competent authority . Please refer Definition as per Section 2 (1) (a) , (ii) a person in whose case an order has been passed by the Assessing Officer, or an order has been passed by the Commissioner (Appeals) or the Income Tax Appellate Tribunal in an appeal, or by the High Court in a writ petition, on or before the specified date, and the time for filing any appeal or special leave petition against such order by that person has not expired as on that date. |
| Query | If by any reason the process of verification of Form 4 is failed or say if later it comes to knowledge that there was a technical error is filling VSV form. However if the assesee has made the payment of taxes by that time. My question is whether the said payment of tax will be refundable/ adjustable or it will be no refundable/adjustable at all if the VSV process becomes invalid due to some technical reason |
| Answer | As per section 7 of VSVA, any amount paid in pursuance of a declaration made under section 4 of VSVA shall not be refundable under any circumstances. Therefore, it is advisable to rectify Form 4 and contact your designated Authority under VSVA .In case no response is received by the assessee from the designated authority , the assessee may file a writ before the High Court |
| Query | A -ve return had been filed by the assessee for AY 2010-2011 having carry forward loss. The assessee received an order, disallowing all expenses claimed in the CY as well as PY b/f losses, and also to pay tax on 8% of gross receipts. A CIT appeal had been filed against the tax on profits(taken by AO as 8% of gross receipts) and the disallowance of brought forward losses of PGBP. The same was partly allowed ( B/F loss allowed). After allowing of the same, the tax on Total Income becomes -ve. |
| Answer | If the assessee desires to settle the issue , the assessee may have to pay the tax in dispute after considering the appeal effect of the order of the CIT (A) . Choice is with the assessee whether he desires to file as per schedule D or A. It may have to be decided considering the facts of the case |
| Query | Respected Sir, |
| Answer | Yes , the legal heir can file the declaration however the tax has to be paid on the disputed amount , the interest will be waived . The Form can be filled and at the time of verification of the Form, your capacity can be disclosed. In the event of any hardship it is advisable to contact your Designated Authority under VSVA.
|
| Query | If the Assessing Officer fails to rectify error apparent on record, whether a writ can be preferred on the premise that no alternate efficacious remedy is available and the assessee will not be able to file VSVS application if rectification is not permitted. What would be the answer in case, the rectification is summarily disposed off |
| Answer | An appeal is pending before CIT(A), however, the AO did not rectify a mistake apparent on record. As per FAQ 25 of CBDT Circular No. 9 of 2020 dated April 22, 2020, where the rectification order passed by the AO may have an impact on determination of disputed tax, if there is reduction or increase in the income and tax liability of the assessee as a result of rectification. The disputed tax in such cases would be calculated after giving effect to the rectification order passed, if any. If the AO is not passing the rectification order, the assessee can file the writ petition , with the prayer an disposal of rectification application, High Court may direct the AO to pass order at the earliest . However, in case of an adverse order under section 154 of the Act, the assessee has no recourse, apart from settling the appeal pending before CIT(A). VSVA is a scheme for declaration and the merits are not taken into consideration. An appeal is pending before CIT(A), however, the AO did not rectify a mistake apparent on record. As per FAQ 25 of CBDT Circular No. 9 of 2020 dated April 22, 2020, where the rectification order passed by the AO may have an impact on determination of disputed tax, if there is reduction or increase in the income and tax liability of the assessee as a result of rectification. The disputed tax in such cases would be calculated after giving effect to the rectification order passed, if any. If the AO is not passing the rectification order, the assessee can file the writ petition , with the prayer an disposal of rectification application, High Court may direct the AO to pass order at the earliest . However, in case of an adverse order under section 154 of the Act, the assessee has no recourse, apart from settling the appeal pending before CIT(A). VSVA is a scheme for declaration and the merits are not taken into consideration. |