Re: Protective Assessment

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

One may refer : Clarifications on provisions of the Direct Tax Vivad se Vishwas Bill, 2020 - reg. dt 4-03 -2020  issued by CBDT ,Q.No 35 Reads as under ;   Q.No 35 :  If there is substantive addition as well as protective addition in the  case of same assessee for different assessment year, how will that be covered? Similarly if there is substantive addition in case of one assessee and protective addition on same issue in the case  of another assessee, how will that be covered under Vivad se Vishwas? 

Answer: If the substantive addition is eligible to be covered under Vivad se Vishwas, then on settlement of dispute related to substantive addition AO shall pass rectification order deleting the protective addition relating to the same issue in the case of the assessee or in the case of another  assessee.  

Considering the intention of the legislature ,  if the assessee against whom  the order is passed protectively , and the appeal is pending as on 31-01 -2020,  the assessee can avail the benefit of  Vivad se Vishwas Scheme. The order against  whom the substantial addition is made have to be deleted . One may file rectification  application or may point out in appeal proceedings . Normally the appeal relating to substantial addition and protective addition are  always heard together . If the appeals are not fixed together the assessee may have to make an application to fix the appeals together at the time of withdrawal of appeal 

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