Re: Treatment of refund granted under 143(1) and Interest u/s 234D

Hi,

What will be the treatment of refund earlier granted as per intimation u/s 143(1)(a) in VsV Act, 2020?

Also, whether the interest levied under section 234D will also be waived if the assessee opt for VsV Scheme.

Please refer S. 234D (2) which says that where as a result of an order u/s 154  or 155 or 250 or 254 or 260 or  262  or 263 or 264 etc is passed the amount of refund granted under Sub section 143(1) is held to be correctly allowed , either in whole or in part as the case may be then interest chargeable , if any ,under section sub -section (1) shall be reduced accordingly. Accordingly once the issue is settled under VSVSchme , the AO has to pass consequential order reducing the interest .   

 

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