Re: Applicability of Section 69C under VSV

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?

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.

 

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