Re: RECTIFICATION APPLICATION REJECTED AND EFFECT THEREOF ON TAX COMPUTED UNDER VSV
IN OUR CASE AN ORDER IS PASSED U/S. 201(1) DETERMINING AN AMOUNT OF RS. 2,05,00,000/- ON WHICH TAX SHOULD BE DEDUCTIBLE U/S. 195 OF THE ACT. WE HAVE FILED A RECTIFICATION APPLICATION WITH NECESSARY EVIDENCE BEFORE AO POINTING OUT MISTAKE IN THE FIGURE ADOPTED BY THEM AND IN ALTERNAE ALSO REQUESTED TO PROVIDE THE DOCUMENTS BASED ON WHICH SUCH FIGURE ARE WORKED OUT. IN THE MEAN TIME ALSO FILED FORM NO. 1 UNDER THE SCHEME. AO HAS REJECTED OUR APPLICATION WITHOUT ANY BASE AND ALSO NOT PROVIDED THE DOCUMENTS BASED ON WHICH FIGURE OF RS. 2,05,00,000/- IS ARRIVED. CAN WE CHALLANGE THE REJECTION ORDER FOR RECTIFICATION BEFORE CIT (A) AND ALSO OPT FOR VSV SCHEME. IF LATER ON CIT(A) HELD IN OUR FAVOUR FOR 154 REJECTION AND WE PAY THE AMOUNT AS DETERMINED BY DA WITHOUT CONSIDERING OUR RECTIFICATION THEN WHETHER SUCH EXCEES AMOUNT WILL BE REFUDABLE TO US?
Please refer circular No . 9 /2020 dt 22-4 -2020--Q, No . 42 and answer given by the CBDT, which state that any amount paid in pursuance of a declaration made under the Vivad Se Vishawas shall not be refundable under any circumstances . The assessee may write to the Designated Authority stating the tax is paid under protest as the appeal is pending before the CIT (A) against the rejection of application under section 154 of the Act. In case the assessee succeed in appeal , the assessee may approach for refund as the amount was paid under protest. In case the refund is not granted the assessee may have to file writ before the High Court.
if no refund is to granted after the appeal from rejection of rectification order is decided then such appeal should not be admissible it appears that such appeal are infrctous from the day it is filed
it appears that if the AO stubbornly refuses to carry out obvious rectification and such order is appealed and appeal is decided in favour the effct of the sameshould be given