Re: Availing benefit under Vivad Se Vishwas Scheme?

I want to settle my case under VSVS . I want to know if I settle my case under VSVS will that year income be counted as earned money of that year in my ITR?
My CA told me the income will not be generated if we settle the case under the VSVS.
Can I rectify my ITR after availing the benefit of VSVS or Should I settle the case appealing to the tribunal?

VSVA is only with respect to settlement of disputed and not an amnesty scheme. It only provides an option to settle appeals on contentious issues that are neither accepted by the Department nor the assessee.  stating that the accounting entries will be independent and would not be saved by the scheme. The Assessee cannot rectify its ITR after VSVA. The CBDT Circular No 21/20 dt 4-12-2020 Q No 81 reads as under ;  In respect of some loan, addition was made U/S 68 of the Act. Appeal ispending beforeCIT(A) and the assessee is eligible for opting Vivad seVlshwas. After making the payment of tax under Vivad se Vishwas, can the assessee make entries in his books by crediting the said loan in his capital account?

No, Vivad seVishwasis not an amnesty scheme. It only provides an option to settle appeals on contentious issues that are neither accepted by the Department nor the assessee.

It is fair to assume that the accounting entries by itself would not attract the income tax under the regular provisions of the Income Tax Act. However the liability to MAT u/s 115JB for that year would require to be contested if such tax is levied. The issue under the Companies Act and SEBI laws and the listing agreements and of the corporate governance and also of the CSR spends would require to be deeply examined. There are no immunity as  per the scheme.

 

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