The assessee order u/s 147 rw143(3) for Ay 2012-13 was passed in Dec 19 and demand of Rs 82 lacwith interest( 72 Lac with out Interest created Further refund for Ay 2017-18 has been determined in Jan 20 for 72 Lacs

Assessee has another disputed demand pending for Ay 2016-17 order passed in Dec 18

The assessee wants to go for scheme for Ay 2012-13 and get refund adjusted with this demand and applied the same online in CPC and a application was given to AO in first week of March No confirmation of adjustment
of refund

Is refund can be adjusted only with demand created first or with any demand

whether first demand should be adjusted only then we can apply or we can apply and ask again the AO to adjust with refund Please guide

1. The CIT(A) has given part relief in an appeal. The department is in appeal for that portion before ITAT, however the assessee has not preferred appeal for against the issues decided against him.

2. The AO has levied penalty on the total additions and against which the assessee is in appeal before CIT(A).

3. Now the assessee wishes the settle the quantum in the scheme by paying 50% of the tax on the disputed additions.

Query:

As per the scheme and FAQ 8, it is important to note that

“If both quantum appeal covering disputed tax and appeal against penalty levied on such disputed tax for an assessment year are pending, the declarant is required to file a declaration form giving details of both disputed tax appeal and penalty appeal. However, he would be required to pay relevant percentage of disputed tax only. Further, it would not be possible for the appellant to apply for settlement of penalty appeal only when the appeal on disputed tax related to such penalty is still pending.”

As per FAQ 38, it is important to note that

“Under Vivad se Vishwas, interest and penalty will be waived only in respect of the issue which is disputed in appeal and for which declaration is filed. Hence, for the undisputed issue, the tax, interest and penalty shall be payable”.

Query:

In the above circumstances the assessee is being put in a jeopardy, which will cause undue hardship as the assessee will have to now pay the penalty on issues decided against the assessee for which he is not in appeal.

Please enlighten us on the violation of Article 14 in the above case as well sir.

I would be more than obliged.

Appeal against penalty order as filed with CIT(A) after delay of 10 days. CIT(A) dismiss condonation of delay. We are at appeal in ITAT against the order of CIT(A)for condonation of delay. whether we can opt for VSV Scheme against the penalty order passed by the AO.

My client was required to file appeal in Feburary,2016 but appeal was filed in Feb.,2018 whetehr the same will be considered in the Vivad Se Vishwas Scheme if the client is willing to settle the dispute

Quantum appeal pending before ITAT filed by Assessee against adverse order passed by CIT(A). Pursuant to order of CIT(A), penalty proceeding initiated u/s 271(1)(c) and levied. Assessee paid the penalty. No appeal filed against penalty order and time limit elapsed. On opting of VSV scheme for quantum appeal, whether penalty already paid will be refunded?

Quantum Appeal is pending before ITAT. Meanwhile penalty u/s 271(1)(c) was levied by AO in respect of additions contested before ITAT and appeal against the same is also pending before CIT(A). Thereafter, AO passed order levying interest u/s 220 in respect of demand outstanding (Tax + Interest + Penalty). Waiver petition against the order levying interest u/s 220 is pending before Pr. CIT.

Now, while reporting in declaration in form 1 under VSV, whether the interest charged on disputed tax (Part F, Schedule-I, Column G) shall include interest u/s 220 along with int. u/s 234A/B/C?

Whether interest levied u/s 220 shall also be waived?

Facts: – Assessee had paid demand of say Rs. 100 under protest during the appellate proceedings before CIT(A). CIT(A) gave substantial relief and Assessee did not challenge the order before the ITAT. In the appeal effect order, the AO adjusted say Rs. 25 against the undisputed demand and refunded Rs. 60 (Short – Rs. 15). Thereafter, department preferred an appeal on two issues against the order of CIT(A) before the ITAT. On one of the issues, the demand was upheld by ITAT and on other issue ITAT has set-aside to AO for fresh investigation. The Assessee has filed an appeal before the High Court for both the issues i.e. disallowance and set-aside, and is now desirous of opting for VsV Scheme.
Issues: –
i. In point (ii) of Part E of Form 1 – details of challan paid has to be given in case taxes (either in full/ in part) have already been paid. How does one show the details of Rs. 15 (partial unadjusted challan) there?

ii. Further, since on one of the issues, order was set-aside to the AO with specific directions to examine and verify the evidence afresh and the matter is currently pending with the AO, would tax be payable on this issue, if the Assessee opts for the VsV Scheme? If yes, would it be 100% /50%/Nil? [It may be noted that this issue was adjudicated in favour of the Assessee by the CIT(A)]. Reference is invited to Question no. 7 and Question no. 27 of the FAQs issued by CBDT on March 4, 2020.

iii. Which section Assessee must select under column (2) Part B of Form 1 – Section under which order has been passed? (254 or 143(3) r.w.s 254)

One of my clients has been passed assessment order protectively. He has gone on appeal and the appeal is pending as on 31.01.2020 with CIT Appeal. If my client wants to go for the scheme what is your advice

As per FAQ 25, if any rectification is pending before AO as on 31st January, 2020 then the same will be given effect while calculating disputed tax. In a case where there is some apparent mistake, however, rectification for the same was not pending as on 31st January, 2020 will the error be corrected? Will filing of rectification now help assessees?

If the Revision Order under section 263 has been passed on 21st Jan, 2020 and the matter has been set-aside to the file of the AO with a specific direction where he has to freshly examine a claim of the assessee like deduction made under section 54F amounting to Rs. X. The order of the AO is pending. Can the assessee avail the benefit of Vivad se Vishwas Scheme?