Question And Answer
Subject: credit of payment of taxes under IDS to declaration under DTVSVS
Querist: Ruchi Bhansali
Answered by:
Tags: ,
Date: November 3, 2021
Query asked by Ruchi Bhansali
  1. The assessee  is an individual and derives income from the business promoter builder.
  2. The assessee has disclosed an income of Rs.15,50,000/- under the Income Declaration Scheme (IDS) 2016. The assessee has paid two installments under IDS -2016. However, assesse has not paid the third installment of tax on such declared income under IDS, 2016 due to reasons beyond his control. The total amount paid under IDS was 3,48,752/-
  3. The assessment for the year under consideration was reopened u/s 147 of the Act by issue of notice u/s 148 of the Act dt 30.03.2018 and duly served to the assessee.
  4. AO has passed order u/s 144 r.w.s 147 and assessed the income at Rs.38,22,910/- by making an addition of Rs.15,50,000/- on the ground that the assessee had made a disclosure under IDS 2016 amounting to Rs.15,50,000/- however, has not complied with the conditions and therefore this income is chargeable to tax for A.Y 2016-17.
  5. AO has also passed penalty order levying penalty u/s 271(1)(c) amounting to Rs.6,97,500/- on 28.05.2019. On receipt of the said penalty order Petitioner came to know that in his case assessment order was also passed u/s 144.
  6. The assessee then filed an appeal before the CIT(A) against the assessment order passed U/Sec. 144 of the Act and also against the penalty order levied U/Sec. 271(1) (c) of the Act on 22.06.2019. Both these appeals are pending before the CIT(A).
  1. Petitioner then uploaded an application in Form Number 1 and 2 under Direct Tax Vivad Se Viswas Act on 22.03.2020 determining the gross tax payable under DTVSV Act, at Rs. 6,97,500/- and after taking the credit of Taxes paid amounting to Rs. 5,07,140.00 , the net amount payable was at Rs. 1,90,360.00. However the payment made by the assessee under IDS declaration  were remained to be claimed in the said application.
  2. The PCIT has issued the  form 3 under VSVS-Act, on 27.09.2021, asking the petitioner to pay Rs. 1,90,000.00 on or before 30.09.2021 and Rs. 2,59,750.00 after 30.09.2021. However assessee could not verify the same due to errors in the Portal.
  3. Accordingly, the assessee  voluntarily paid Rs. 2,09,400.00 on 30.10.2021 by considering the net amount payable as per Form No. 1 and 2 at Rs. 1,90,360/- plus 10% of this amount (190360*10% of 190360/- = 2,09,396/-) and also intimated that petitioner has paid Rs. 2,09,400.00.
  4. The Petitioner has considered the net amount payable , where as PCIT  has considered the Gross amount payable while calculating the amount payable while added additional 10% when the amount payable under DTVSV Act, is to be paid in the extended period up to 31.10.2020.
  5. The petitioner has paid Rs. 51000.00 on 1.11.2021 voluntarily.
  6. The petitioner has requested the PCIT to give credit of taxes paid under IDS-2016 amounting to Rs. 348752/- against the liability under DTVSVS vide letter dated 2.11.2021 in view of recent Bombay High Court decision in the case of Pinnacle Vastunirman Pvt. ltd. vs UOI (TS-805-HC-2021).
  7. PCIT is not accepting the request of the assessee of giving credit of taxes paid under IDS against the liability under DTVSVS and considering that application made  under DTVSVS is invalid  since the assessee has not made payment under DTVSVS in full,
  8. please guide .


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Answer given by

The assessee may have to file writ before the High Court. There is no other remedy

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