Re: Initiation of Sec 263

Whether Sec 263 can be initiated against the assessee in respect of matter decided under Vivad Se Vishwas Scheme

Please refer Section 5 (3) of the  Direct  Tax Vivad Se Vishwas Act , 2020, every order passed under  sub section 5(1) , determining the amount payable under this Act  shall be conclusive as to the matter stated therein and no matter covered by such order reopened in any proceedings under the Income -tax  Act -------Also refer  Laherchand Dhanji v. UOI [1982] 135 ITR 689 ( Bom) (HC)  dealing with VDIS 1976 the  Court held that once the certificate is issued the same cannot be with drawn . in   Uma Corporation v. ACIT & Ors. (2006) 204 CTR 282 / 284 ITR 67 (Bom.)(HC)  the Court 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. Also refer  Killick Nixon Ltd. v. Dy. CIT (2002) 258 ITR 627 / 125 Taxman1055/(2003)172Taxation373 / 178 CTR 387 (SC)  the Court held that once declaration is accepted  reassessment is not permissible .Accordingly after issue of certificate in respect of tax in dispute  revision u/ s 263  is not permissible .

 

 

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