| Question And Answer | |
|---|---|
| Subject: | Reopening under section 263 |
| Category: | Income-Tax |
| Querist: | alagammai |
| Answered by: | Dr .K. Shivaram Senior Advocate |
| Tags: | 2020, Revision, Revision of assessment, The Direct Tax Vivad Se Vishwas Act |
| Date: | March 8, 2022 |
Client Assessment was completed under 143(3) and appeal was filed and later opted for Vivad se vishwas scheme. Taxes paid. Now PCIT issues SCN under section 263 for reopening of Assessment for the same issue higher quantum. Is it permitted?
Once the taxes are paid and accepted by the Designated Authority and also certificate is issued u/s 5(1)) of the Vivad se Vishwas Act , 2020 , revision of the said order is not permitted . As per section 6 of The Direct Tax Vivad Se Vishwas Act , 2020 ,gives immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases . After the issue of certificate the order of the Assessing Officer merges with the order of the Designated Authority . Under section. 263 there is no power the revise the order of the Designated Authority . In Uma Corporation v. ACIT & Ors. (2006) 204 CTR 282 / 284 ITR 67 (Bom.)(HC) held that Income disclosed under VDIS for which certificate is issued by the authority. Reassessment proceeding in respect of such disclosed income is not valid. The said ratio is applicable to revision provision proceeings u/s 263 of the Act .