{"id":14657,"date":"2020-03-05T18:01:56","date_gmt":"2020-03-05T12:31:56","guid":{"rendered":"http:\/\/itatonline.org\/info\/?p=14657"},"modified":"2020-03-07T11:02:12","modified_gmt":"2020-03-07T05:32:12","slug":"download-cbdt-clarifications-faqs-on-the-direct-tax-vivad-se-vishwas-bill-2020","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/download-cbdt-clarifications-faqs-on-the-direct-tax-vivad-se-vishwas-bill-2020\/","title":{"rendered":"Download CBDT Clarifications (FAQs) On The Direct Tax Vivad se Vishwas Bill, 2020"},"content":{"rendered":"<p>The CBDT has vide Circular No.7\/2020 dated 4th March, 2020 provided clarification on a number of controversial issues relating to the Direct Tax Vivad se Vishwas Bill, 2020<\/p>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- responsive --><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-6440093791992877\"\n     data-ad-slot=\"6406297397\"\n     data-ad-format=\"auto\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script> <\/p>\n<div class=\"journal2\"><a href=\"https:\/\/itatonline.org\/info\/cbdt-circular-vivad-viswas\/#blurbdl\">Click here to download Circular No.7\/2020 dated 4th March, 2020<\/a><\/div>\n<blockquote>\n<p align=\"center\">Government of India <br \/>\n  Ministry of Finance<br \/>\n  Department of Revenue<br \/>\n  Central Board of Direct Taxes<\/p>\n<p>&nbsp;&nbsp; &nbsp; <br \/>\n  New Delhi, 5th March,   2020 <\/p>\n<p align=\"center\"><u>&nbsp;<\/u><\/p>\n<p align=\"center\"><u>PRESS RELEASE<\/u><\/p>\n<p align=\"center\"><strong>CBDT issues FAQs on Direct Tax Vivad se Vishwas  Scheme, 2020<\/strong><\/p>\n<p>The &lsquo;Vivad se Vishwas&rsquo; Scheme was announced during the Union  Budget, 2020, to provide for dispute resolution in respect of pending income tax  litigation. Pursuant to the Budget announcement, the Direct Tax Vivad se  Vishwas Bill, 2020 (hereinafter called <strong><em>Vivad se Vishwas<\/em><\/strong>) was introduced in  the Lok Sabha on 5th of February, 2020 and passed by it on 4th of March, 2020. <\/p>\n<p>The objective of <strong><em>Vivad se Vishwas<\/em><\/strong> is to <em>inter alia<\/em> reduce pending income tax  litigation, generate timely revenue for the Government and benefit taxpayers by  providing them peace of mind, certainty and savings on account of time and  resources that would otherwise be spent on the long-drawn and vexatious  litigation process. <\/p>\n<p>Subsequently, based on the representations received from the  stakeholders regarding its various provisions, official amendments to <strong><em>Vivad  se Vishwas <\/em><\/strong>have been proposed. These amendments seek to widen the scope  of <strong><em>Vivad  se Vishwas <\/em><\/strong>and reduce the compliance burden on taxpayers.<a name=\"_Hlk32356843\" id=\"_Hlk32356843\"><\/a><\/p>\n<p>After  introduction of <strong><em>Vivad se Vishwas <\/em><\/strong>in Lok Sabha, several queries  have been received from the stakeholders seeking clarifications in respect of  various provisions contained in the Scheme. <\/p>\n<p>After considering various queries received from  stakeholders, CBDT has clarified the same in the form of answers to frequently  asked questions (FAQs) vide Circular No.7\/2020 dated 04.03.2020. <\/p>\n<p>The FAQs contain clarifications on  scope\/eligibility, calculation of disputed tax, procedure related to payment of  disputed tax and consequential benefits to the declarant. These FAQs are  available on the official website of the Income Tax Department at <a href=\"https:\/\/www.incometaxindia.gov.in\/communications\/circular\/circular_no_7_2020.pdf\">https:\/\/www.incometaxindia.gov.in\/communications\/circular\/circular_no_7_2020.pdf<\/a>. <\/p>\n<p><strong>It  is reiterated that these clarifications are, however, subject to approval and  passing of <em>Vivad se Vishwas<\/em> by the Parliament and receiving assent of  the Hon&rsquo;ble President of <\/strong><strong>India<\/strong><strong>.&nbsp; <\/strong><strong> <\/strong><\/p>\n<p align=\"center\">(Surabhi Ahluwalia)<br \/>\n  Commissioner of Income Tax<br \/>\n  (Media &amp; Technical Policy)<br \/>\n  Official Spokesperson, CBDT.<\/p>\n<\/blockquote>\n<blockquote><p>Circular No.7\/2020<br \/>\nF. No. IT(A)\/1I2020-TPL<br \/>\nGovernment of India<br \/>\nMinistry of Finance<br \/>\nDepartment of Revenue<br \/>\nCentral Board of Direct Taxes<br \/>\n****<br \/>\nDated: 4th March, 2020<br \/>\nSub.: Clarifications on provisions of the Direct Tax Vivad se Vishwas Bill, 2020 &#8211; reg.<br \/>\nDuring the Union Budget, 2020 presentation, the &#8216;Vivad se Vishwas&#8217; Scheme was<br \/>\nannounced to provide for dispute resolution in respect of pending income tax litigation. Pursuant to<br \/>\nBudget announcement, the Direct Tax Vivad se Vishwas Bill, 2020 (Vivad se Vishwas) was<br \/>\nintroduced in the Lok Sabha on 5th Feb, 2020. The objective of Vivad se Vishwas is to inter alia<br \/>\nreduce pending income tax litigation, generate timely revenue for the Government and benefit<br \/>\ntaxpayers by providing them peace of mind, certainty and savings on account of time and resources<br \/>\nthat would otherwise be spent on the long-drawn and vexatious litigation process. Subsequently,<br \/>\nbased on the representations received from the stakeholders regarding its various provisions, official<br \/>\namendments to Vivad se Vishwas have been proposed. These amendments seek to widen the scope<br \/>\nof Vivad se Vlshwus and reduce the compliance burden on taxpayers.<br \/>\n2. After introduction of Vivad se Vishwas in Lok Sabha, several queries have been received from<br \/>\nthe stakebolders seeking clarifications in respect of various provisions contained therein.<br \/>\nGovernment has considered these queries and decided to clarify the same in form of answers to<br \/>\nfrequently asked questions (FAQs). These clarifications are, however, subject to approval and<br \/>\npassing of Vivad se Vishwas by the Parliament and receiving assenLllLthc_H-&#8216;ln&#8217;hleJ&#8217;n:sidenLnf_<br \/>\nIndia.<br \/>\n&#8220;QUESTIONS ON SCOPE\/ ELIGIBILITY (Q. No.1 &#8211; 24)&#8221;<br \/>\nQuestion No.<br \/>\nAuswer:<br \/>\n1. Which appeals are covered under the Vivad se Vishwas?<br \/>\nAppeals pending before the appellate forum [Commissioner (Appeals),<br \/>\nIncome Tax Appellate Tribunal (!TAT), High Court or Supreme Court],<br \/>\nand writ petitions pending before High Court (HC) or Supreme Court<br \/>\n(SC) or special leave petitions (SLPs) pending before SC as on the 31,t<br \/>\nday of January, 2020 (specified date) are covered. Cases where the<br \/>\norder has been passed but the time limit for filing appeal under the<br \/>\nIncome-tax Act, 1961 (the Act) against the order has not expired as on<br \/>\nthe specified date are also covered. Similarly, cases where objections<br \/>\nfiled by the assessee against draft order are pending with Dispute<br \/>\nResolution Panel (DRP) or where DRP has given the directions but the<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nAssessing Officer (AO) has not yet passed the finai order on or before<br \/>\nthe specified date are also covered. Cases where revision application<br \/>\nunder section 264 of the Act is pending before the Principal<br \/>\nCommissioner or Commissioner are covered as well. Further, where a<br \/>\ndeclarant has initiated any proceeding or given any notice for<br \/>\narbitration, conciliation or mediation as referred to in clause 4 of the Bill<br \/>\nis also covered.<br \/>\n2. If there is no appeal pending but the case is pending in arbitration,<br \/>\nwill the taxpayer be eligible to apply under Vivad se Vishwas? If yes<br \/>\nwhat will be the disputed tax?<br \/>\nAn assessee whose case is pending in arbitration is eligible to apply for<br \/>\nsettlement under Vivad se Vishwas even if no appeal is pending. In such<br \/>\ncase assessee should fill the relevant details applicable in his case in the<br \/>\ndeclaration form. The disputed tax in this case would be the tax<br \/>\n(including surcharge and cess) on the disputed income with reference to<br \/>\nwhich the arbitration has been filed.<br \/>\n3. Whether Vivad se Vishwas can be availed for proceedings pending<br \/>\nbefore Authority of Advance Ruling (AAR)? If a writ is pending<br \/>\nagainst order passed by AAR in a He will that case be covered and<br \/>\nhow disputed tax to be calculated?<br \/>\nVivad se Vishwas is not available for disputes pending before AAR.<br \/>\nHowever, if the order passed by AAR has determined the total income<br \/>\nof an assessment year and writ against such order is pending in HC, the<br \/>\nappellant would be eligible to apply for the Vivad se Vishwas. The<br \/>\ndisputed tax in that case shall be calcnlated as per the order of the AAR<br \/>\nand accordingly, wherever required, consequential order shall be passed<br \/>\nby the AO. However, if the order of AAR has not determined the total<br \/>\nincome, it would not be possible to calculate disputed tax and hence<br \/>\nsuch cases would not be covered. To illustrate, if AAR has given a<br \/>\nruling that there exists Permanent Establishment (PE) in India but the<br \/>\nAO has not yet determined the amount to be attributed to such PE, such<br \/>\ncases cannot be covered since total income has not yet been determined.<br \/>\n4. An appeal has been filed against the interest levied on assessed tax;<br \/>\nhowever, there is no dispute against the amount of assessed tax. Can<br \/>\nthe benefit ofthe Vivad se Vishwas be availed?<br \/>\nDeclarations covering disputed interest (where there is no dispute on tax<br \/>\ncorresponding to such interest) are eligible under Vivad se Vishwas. It<br \/>\nmay be clarified that if there is a dispute on tax amount, and a<br \/>\ndeclaration is filed for the disputed tax, the full amount of interest levied<br \/>\nor leviable related to the disputed tax shall be waived.<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestiou No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\n5. What if the disputed demand including interest has been paid by the<br \/>\nappellant while being in appeal?<br \/>\nAppeals in which appellant has already paid the disputed demand either<br \/>\npartly or fully are also covered. If the amount of tax paid is more than<br \/>\namount payable under Vivad se Vishwas, the appellant will be entitled<br \/>\nto refund without interest under section 244A of the Act.<br \/>\n6. Can the benefit of the Vivad se Vishwas be availed, if a search and<br \/>\nseizure action by the Income-tax Department has been initiated<br \/>\nagainst a taxpayer?<br \/>\nCase where the tax arrears relate to an assessment made under section<br \/>\n143(3) or section 144 or section 153A or section 153C of the Act on the<br \/>\nbasis of search initiated under section 132 or section 132A of the Act<br \/>\nare excluded if the amount of disputed tax exceeds five crore rupees in<br \/>\nthat assessment year.<br \/>\nThus, if there are 7 assessments of an assessee relating to search &#038;<br \/>\nseizure, out of which in 4 assessments, disputed tax is five crore rupees<br \/>\nor less in each year and in remaining 3 assessments, disputed tax is<br \/>\nmore than five crore rupees in each year, declaration can be filed for 4<br \/>\nassessments where disputed tax is five crore rupees or less in each year.<br \/>\n7. If assessment has been set aside for giving proper opportunity to an<br \/>\nassessee on the additions carried out by the AO. Can he avail the<br \/>\nVivad se Vishwas with respect to such additions?<br \/>\nIf an appellate authority has set aside an order (except where assessment<br \/>\nis cancelled with a direction that assessment is to be framed de novo) to<br \/>\nthe file of the AO for giving proper opportunity or to carry out fresh<br \/>\nexamination of the issue with specific direction, the assessee would be<br \/>\neligible to avail Vivad se Vishwas. However, the appellant shall also be<br \/>\nrequired to settle other issues, if any, which have not been set aside in<br \/>\nthat assessment and in respect of which either appeal is pending or time<br \/>\nto file appeal has not expired. In such a case disputed tax shall be the tax<br \/>\n(including surcharge and cess) which would have been payable had the<br \/>\naddition in respect of which the order was set aside by the appellate<br \/>\nauthority was to be repeated by the AO.<br \/>\nIn such cases while filling the declaration form, appellant can indicate<br \/>\nthat with respect to the set-aside issues the appeal is pending with the<br \/>\nCommissioner(Appeals).<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\n8. Imagine a case where an appellant desires to settle concealment<br \/>\npenalty appeal pending before CIT(A), while continuing to litigate<br \/>\nquantum appeal that has travelled to higher appellate forum.<br \/>\nConsidering these are two independent and different appeals, whether<br \/>\nappellant can settle one to exclusion of others? If yes, whether<br \/>\nsettlement ofpenalty appeal will have any impact on quantum appeal?<br \/>\nIf both quantum appeal covering disputed tax and appeal against penalty<br \/>\nlevied on such disputed tax for an assessment year are pending, the<br \/>\ndeclarant is required to file a declaration form giving details of both<br \/>\ndisputed tax appeal and penalty appeal. However, he would be required<br \/>\nto pay relevant percentage of disputed tax only. Further, it would not be<br \/>\npossible for the appellant to apply for settlement of penalty appeal only<br \/>\nwhen the appeal on disputed tax related to such penalty is still pending.<br \/>\n9. Is there any necessity that to qualifY under the Vivad se Vishwas, the<br \/>\nappellant should have tax demand in arrears as on the date offiling<br \/>\ndeclaration?<br \/>\nVivad se Vishwas can be availed by the appellant irrespective of<br \/>\nwhether the tax arrears have been paid either partly or fully or are<br \/>\noutstanding.<br \/>\n10. Whether 234E and 234Fappeals are covered?<br \/>\nIf appeal has been filed against imposition of fees under sections 234E<br \/>\nor 234F of the Act, the appellant would be eligible to file declaration for<br \/>\ndisputed fee and amount payable under Vivad se Vishwas shall be 25%<br \/>\nor 30% of the disputed fee, as the case may be.<br \/>\nIf the fee imposed under section 234E or 234F pertains to a year in<br \/>\nwhich there is disputed tax, the settlement of disputed tax will not settle<br \/>\nthe disputed fee. If assessee wants to settle disputed fee, he will need to<br \/>\nsettle it separately by paying 25% or 30% of the disputed fee, as the<br \/>\ncase may be.<br \/>\n11. In case where disputed tax contains qualifying tax arrears as also<br \/>\nnon-qualifying tax arrears (such as, tax arrears relating to assessment<br \/>\nmade in respect of undisclosedforeign income):<br \/>\n(i) Whether assessee is eligible to the Vivad se Vishwas itself?<br \/>\n(ii) If eligible, whether quantification of disputed tax can<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nexclude\/ignore non-qualifying tax arrears?<br \/>\nIf the tax arrears include tax on issues that are excluded from the Vivad<br \/>\nse Vishwas, such cases are not eligible to file declaration under Vivad se<br \/>\nVishwas. There is no provision nuder Vivad se Vishwas to settle part of<br \/>\na pending dispute in relation to an appeal or writ or SLP for an<br \/>\nassessment year. For one pending appeal, all the issues are required to<br \/>\nbe settled and if anyone of the issues makes the declaration invalid, no<br \/>\ndeclaration can be filed.<br \/>\n12. If a writ has been filed against a notice issued under section 148 ofthe<br \/>\nAct and no assessment order has been passed consequent to that<br \/>\nsection 148 notice, will such case be eligible to file declaration under<br \/>\nVivad se Vishwas?<br \/>\nThe assessee would not be eligible for Vivad se Vishwas as there is no<br \/>\ndetermination of income against the said notice.<br \/>\n13. With respect to interest under section 234A, 234B or 234C, there is no<br \/>\nappeal but the assessee has filed waiver application before the<br \/>\ncompetent authority which is pending as on 31 Jan 2020? Will such<br \/>\ncases be covered under Vivad se Vishwas?<br \/>\nNo, such cases are not covered. Waiver applications are not appeal<br \/>\nwithin the meaning of Vivad se Vlshwas.<br \/>\n14. Whether assessee can avail of the Vivad se Vishwas for some of the<br \/>\nissues and not accept other issues?<br \/>\nRefer to answer to question no II. Picking and choosing issues for<br \/>\nsettlement of an appeal is not allowed. With respect to one order, the<br \/>\nappellant must chose to settle all issues and then only he would be<br \/>\neligible to file declaration.<br \/>\n15. Will delay in deposit of TDSITCS be also covered under Vivad se<br \/>\nVishwas?<br \/>\nThe disputed tax includes tax related to tax deducted at source (TDS)<br \/>\nand tax collection at source (TCS) which are disputed and pending in<br \/>\nappeal. However, if there is no dispute related to TDS or TCS and there<br \/>\nis delay in depositing such TDSITCS, then the dispute pending in appeal<br \/>\nrelated to interest levied due to such delay will be covered under Vivad<br \/>\nse Vishwas.<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQnestion No.<br \/>\nAnswer:<br \/>\nQuestion No<br \/>\nAnswer:<br \/>\n16. Are cases pending before DRP covered? What if the assessee has not<br \/>\nfiled objections with DRP and the AO has not yet passed the final<br \/>\norder?<br \/>\nYes, a person who has filed his objections before the DRP under section<br \/>\nl44C of the Act and the DRP has not issued any direction on or before<br \/>\nthe specified date as well as a person in whose case the DRP has issued<br \/>\ndirections but the AO has not passed the final assessment order on or<br \/>\nbefore the specified date, is eligible under Vivad se Vishwas.<br \/>\nIt is further clarified that there could be a situation where the AO has<br \/>\npassed a draft assessment order before the specified date, Assessee<br \/>\ndecides not to file objection with the DRP and is waiting for final order<br \/>\nto be passed by the AO against which he can file appeal with<br \/>\nCommissioner(Appeals). In this situation even if the final assessment<br \/>\norder is not passed on or before the specified date, the assessee would<br \/>\nbe considered as the appellant and would be eligible to settle his dispute<br \/>\nunder Vivad se Vishwas, Disputed tax in such case would be computed<br \/>\nbased on the draft order. In the declaration form, the appellant in this<br \/>\nsituation should indicate that time to file objection with DRP has not<br \/>\nexpired,<br \/>\n17. If Cl&#8217;I'(Appeuls} has given an enhancement notice, can the appellant<br \/>\navail the Vivad se Vishwas after including proposed enhanced income<br \/>\nin the total assessedincome?<br \/>\nThe amendment proposed in the Vivad se Vishwas allows the<br \/>\ndeclaration even in cases where CIT (Appeals) has issued enhancement<br \/>\nnotice on or before 31st January, 2020. However, the disputed tax in<br \/>\nsuch cases shall be increased by the amount of tax pertaining to issues<br \/>\nfor which notice of enhancement has been issued.<br \/>\n18. Are disputes relating to wealth tax, security transaction tax,<br \/>\ncommodity transaction tax and equalisation levy covered?<br \/>\nNo. Only disputes relating to income-tax are covered.<br \/>\n19. The assessment order under section 143(3) of the Act was passed in<br \/>\nthe case of an assessee for the assessment year 2015-16. The said<br \/>\nassessment order is pending with ITAT. Subsequently another order<br \/>\nunder section 147\/143(3) waspassedfor the same assessmentyear and<br \/>\nthat is pending with CIT (Appeals)? Could both or one of the orders<br \/>\nbe settled under Vivad se Vishwas?<br \/>\nThe appellant in this case has an option to settle either of the two<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion no<br \/>\nAnswer:<br \/>\nQnestion no<br \/>\nAnswer:<br \/>\nQnestion no<br \/>\nAnswer:<br \/>\nappeals or both appeals for the same assessment year. If he decides to<br \/>\nsettle both appeals then he has to file only one declaration form, The<br \/>\ndisputed tax in this case would be the aggregate amount of disputed tax<br \/>\nin both appeals.<br \/>\n20. In a case there is no disputed tax. However, there is appeal for<br \/>\ndisputed penalty which has been disposed off by CIT (Appeals) on 5&#8217;h<br \/>\nJanuary 2020. Time to file appeal in ITAT ugainst the order of<br \/>\nCommissioner(Appeals) is still available but the appeal has not yet<br \/>\nbeen filed. Will such case be eligible to avail the benefit?<br \/>\nYes, the appellant in this case would also be eligible to avail the benefit<br \/>\nof Vivad se Vishwas. In this case, the terms of availing Vivad se<br \/>\nVishwas in case of disputed penalty\/interest\/fee are similar to terms in<br \/>\ncase of disputed tax. Thus, if the time to file appeal has not expired as<br \/>\non specified date, the appellant is eligible to avail benefit of Vivad se<br \/>\nVishwas. In this case the appellant should indicate in the declaration<br \/>\nfonn that time limit to file appeal in ITAT has not expired.<br \/>\n21. In a case ITAT has quashed the assessment order based on lack of<br \/>\njurisdiction by the AO. The department has filed an appeal in HC<br \/>\nwhich is pending. Is the assessee eligible to settle this dispute under<br \/>\nVivad se Vishwas and ifyes how disputed tax be calculated as there is<br \/>\nno assessment order?<br \/>\nThe assessee in this case is eligible to settle the department appeal in<br \/>\nHC. The amount payable shall be calculated at half rate of 100%,110%,<br \/>\n125% or 135%, as the case may be, on the disputed tax that would be<br \/>\nrestored if the department was to win the appeal in HC.<br \/>\n22. In the case of an assessee prosecution has been instituted and is<br \/>\npending in court. Is assessee eligiblefor the Vivad se Vishwas?<br \/>\nNo. However, where only notice for initiation of prosecution has been<br \/>\nissued with reference to tax arrears, the taxpayer has a choice to<br \/>\ncompound the offence and opt for Vivad se Vishwas.<br \/>\n23. If the due date offiling appeal is after 31.1.2020 the appeal has not<br \/>\nbeenfiled, will such case be eligiblefor Vivad se Vishwas?<br \/>\nYes<br \/>\n24. If appeal is .filed before High Court and is pending for admission as<br \/>\non 31.1.2020, whether the case is eligiblefor Vivad se Vishwas?<br \/>\nYes<br \/>\n&#8220;QUESTIONS RELATED TO CALCULATION (Q. No. 25-40)&#8221;<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\n25. In a case appeal or arbitration is pending on the specified date, but a<br \/>\nrectification is also pending with the A0 which if accepted will reduce<br \/>\nthe total assessed income. Will the calculation of disputed tax be<br \/>\ncalculated on rectified total assessed income?<br \/>\nThe rectification order passed by the AO may have an impact on<br \/>\ndetermination of disputed tax, if there is reduction or increase in the<br \/>\nincome and tax liability of the assessee as a result of rectification. The<br \/>\ndisputed tax in such cases would be calculated after giving effect to the<br \/>\nrectification order passed, if any.<br \/>\n26. Refer to question number 5. How will disputed tax be calculated in a<br \/>\ncase where disputed demand including interest has been paid by the<br \/>\nassessee while being in appeal?<br \/>\nPlease refer to answer to question no. 5. To illustrate, consider a nonsearch<br \/>\ncase where an assessee is III appeal before<br \/>\nCommissionertAppeals). The tax on returned income (including<br \/>\nsurcharge and cess) comes to Rs. 30,000 and interest under section<br \/>\n234B of Rs.l,OOO. Assessee has paid this amount of Rs. 31,000 at the<br \/>\ntime of filing his tax return. During assessment an addition is made and<br \/>\nadditional demand of Rs. 16,000 has been raised, which comprises of<br \/>\ndisputed tax (including surcharge and cess) of&#8217;Rs. 10,000 and interest on<br \/>\nsuch disputed tax of Rs.6000. Penalty has been initiated separately.<br \/>\nAssessee has paid the demand of Rs. 14,000 during pendency of appeal;<br \/>\nhowever interest under section 220 of the Act is yet to be calculated.<br \/>\nAssessee files a declaration, which is accepted and certificate is issued<br \/>\nby the desiguated authority (DA). The disputed tax of Rs 10,000 (at<br \/>\n100%) is to be paid on or before 31&#8243; March 2020. Since he has already<br \/>\npaid Rs. 14,000, he would be entitled to refund of Rs. 4,000 (without<br \/>\nsection 244A interest). Further, the interest leviable under section 220<br \/>\nand penalty leviable shall also be waived.<br \/>\n27. Refer to question no 7. How will disputed tax be computed in a case<br \/>\nwhere assessment has been set aside for giving proper opportunity to<br \/>\nan assessee on the additions carried out by the AO?<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nPlease refer to answer to question no. 7. To illustrate, return of income<br \/>\nwas filed by the assessee, The tax on returned income was Rs 10,000<br \/>\nand interest was Rs 1,000. The amount of Rs 11,000 was paid before<br \/>\nfiling the return. The AO made two additions of Rs 20,000\/- and Rs<br \/>\n30,000\/-. The tax (including surcharge and cess) on this comes to Rs<br \/>\n6,240\/- and Rs 9,360\/- and interest comes toRs.2,500 and Rs.3,500<br \/>\nrespectively. Commissioner(Appeals) has confirmed the two additions.<br \/>\nITAT confirmed the first addition (Rs 20,000\/-) and set aside the second<br \/>\naddition (Rs 30,000\/-) to the file of AO for verification with a specific<br \/>\ndirection. Assessee appeals against the order of ITAT with respect to<br \/>\nfirst addition (or has not filed appeal as time limit to file appeal against<br \/>\nthe order has not expired). The assessee can avail the Vivad se Vlshwas<br \/>\nif declaration covers both the additions. In this case the disputed tax<br \/>\nwould be the sum of disputed tax on both the additions i.e. Rs. 6240\/plus<br \/>\nRs. 9,360\/-.<br \/>\nIn such cases while filling the declaration form, appellant can indicate<br \/>\nthat with respect to the set-aside issues the appeal is pending with the<br \/>\nCommissioner(Appeals).<br \/>\n28. What amount of tax is required to be paid, if an assessee wants to<br \/>\navail the benefit ofthe Vivad se Vishwas?<br \/>\nUnder the Vivad se Vlshwas, declarant is required to make following<br \/>\npayment for settling disputes:<br \/>\nA. In appeals \/ writ \/ SLP \/ DRP objections \/ revision application under<br \/>\nsection 264 \/ arbitration filed by the assessee &#8211;<br \/>\n(a) In case payment is made till 31&#8243; March, 2020-<br \/>\n(i) 100% of the disputed tax (125% in search cases) where<br \/>\ndispute relates to disputed tax (excess amount over 100%<br \/>\nlimited to the amount of interest and penalty levied or<br \/>\nleviable), or<br \/>\n(ii) 25% of the disputed penalty, interest or fee where dispute<br \/>\nrelates to disputed penalty, interest or fee only.<br \/>\n(b) In case payment is made after 31st March, 2020 &#8211;<br \/>\n(i) 110% of the disputed tax (135% in search cases) where<br \/>\ndispute relates to disputed tax (excess amount over 100%<br \/>\nlimited to the amount of interest and penalty), or<br \/>\n(ii) 30% of the disputed penalty, interest or fee in case of<br \/>\ndispute related to disputed penalty, interest or fee only.<br \/>\nHowever, if in an appeal before Commissioner(Appeals) or in<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nobjections pending before DRP, there is an issue on which the appellant<br \/>\nhas got favourable decision from ITAT (not reversed by HC or SC) or<br \/>\nfrom the High Court (not reversed by SC) in earlier years then the<br \/>\namount payable shall be half or 50% of above amount<br \/>\nSimilarly, if in an appeal before ITAT, there is an issue on which the<br \/>\nappellant has got favourable decision from the High Court (not reversed<br \/>\nby SC) in earlier years then the amount payable shall be half or 50% of<br \/>\nabove amount<br \/>\nB. In appeals Iwrit 1SLP filed by the Department &#8211;<br \/>\n(a) In case payment is made till 31&#8243;March, 2020-<br \/>\n(i) 50% of the disputed tax (62.5% in search cases) in case of<br \/>\ndispute related to disputed tax or<br \/>\n(ii) 12.5% of the disputed penalty, interest or fee in case of<br \/>\ndispute related to disputed penalty, interest or fee only.<br \/>\n(b) In case payment is made after 31&#8243;&#8216; March, 2020 &#8211;<br \/>\n(i) 55% of the disputed tax (67.5% in search cases) in cases of<br \/>\ndispute related to disputed tax, or<br \/>\n(ii) 15% of the disputed penalty, interest or fee in case of<br \/>\ndispute related to disputed penalty, interest or fee only.<br \/>\n29. Whether credit for earlier taxes paid against disputed tax will be<br \/>\navailable against the payment to be made under Vivad se Vishwas?<br \/>\nThe amount payable by the declarant under Vivad se Vishwas shall be<br \/>\ndetermined by the DA under clause 5. Credit for taxes paid against the<br \/>\ndisputed tax before filing declaration shall be available to the declarant<br \/>\nPlease refer to example at question no. 26 above. If in that example<br \/>\nagainst disputed tax ofRs. 10,000 an amount ofRs. 8,000\/- has already<br \/>\nbeen paid, the appellant would be required to pay only the remaining<br \/>\nRs. 2,000\/- by 31&#8243;&#8216; March 2020.<br \/>\n30. Where assessee settles TDS appeal or withdraws arbitration (against<br \/>\norder U\/S 201) as deductor of TDS, will credit ofsuch tax be allowed to<br \/>\ndeductee?<br \/>\nIn such cases, the deductee shall be allowed to claim credit of taxes in<br \/>\nrespect of which the deductor has availed of dispute resolution under<br \/>\nVivad se Vishwas. However, the credit will be allowed as on the date of<br \/>\nsettlement of dispute by the deductor and hence the interest as<br \/>\napplicable to deductee shall apply.<br \/>\n31. Where assessee settles TDS liability as deductor of TDS under Vivad<br \/>\nse Vishwas (i.e against order u\/s 201), when will he get consequential<br \/>\nreliefofexpenditure allowance under proviso to section 40(a)(i)\/(ia)?<br \/>\nAnswer:<br \/>\nQnestion No.<br \/>\nIn such cases, the deductor shall be entitled to get consequential relief of<br \/>\nallowable expenditure under proviso to section 40(a)(i)\/(ia) in the year<br \/>\nin which the tax was required to be deducted.<br \/>\nTo illustrate, let us assume that there are two appeals pending; one<br \/>\nagainst the order under section 201 of the Act for non-deduction ofTDS<br \/>\nand another one against the order under section 143(3) of the Act for<br \/>\ndisallowance under section 40(a)(i)\/(ia) of the Act. The disallowance<br \/>\nunder section 40 is with respect to same issue on which order under<br \/>\nsection 20I has been issued. If the dispute is settled with respect to<br \/>\norder under section 20I, assessee will not be required to pay any tax on<br \/>\nthe issue relating to disallowance under section 40(a)(i)\/(ia) of the Act,<br \/>\nin accordance with the provision of section 40(a)(i)\/(ia) of the Act.<br \/>\nIn case, in the order under section 143(3) there are other issues as well,<br \/>\nand the appellant wants to settle the dispute with respect to order under<br \/>\nsection 143(3) as well, then the disallowance under section 40(a)(i)\/(ia)<br \/>\nof the Act relating to the issue on which he has already settled liability<br \/>\nunder section 20 I would be ignored for calculating disputed tax.<br \/>\nIf the assessee has challenged the order under section 20 I on merits and<br \/>\nhas won in the Supreme Court or the order of any appellate authority<br \/>\nbelow Supreme Court on this issue in favour of the assessee has not<br \/>\nbeen challenged by the Department on merit (not because appeal was<br \/>\nnot filed on account of monetary limit for filing of appeal as per<br \/>\napplicable CEDT circular), then in a case where disallowance under<br \/>\nsection 40(a)(i)\/(ia) of tbe Act is in consequence of such order under<br \/>\nsection 20I and is part of disputed income as per order under section<br \/>\n143(3) in his case, such disallowance would be ignored for calculating<br \/>\ndisputed tax, in accordance with the proviso to section 40(a)(i)\/(ia) of<br \/>\nthe Act.<br \/>\nIt is clarified that if the assessee has made payment against the addition<br \/>\nrepresenting section 40(a)(i)\/(ia) disallowance, the assessee shall not be<br \/>\nentitled to interest under section 244A of the Act on amount refundable,<br \/>\nif any, under Vivad se Vishwas.<br \/>\nIt is further clarified that if the assessee wish to settle disallowance<br \/>\nunder section 40(a)(i)\/(ia) in a search case on the basis of settlement of<br \/>\nthe dispute under section 201, he shall be required to pay higher amount<br \/>\nas applicable for search cases for settling dispute in respect of that TDS<br \/>\ndefault under section 201.<br \/>\n32. When assessee settles his own appeal or arbitration under Vivad se<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nVishwas, will consequential relief be available to the deductor in<br \/>\ndefault from liability determined under TDS order U\/S 201?<br \/>\nWhen an assessee (being a person receiving an income) settles his own<br \/>\nappeal or arbitration under Vivad se Vishwas and such appeal or<br \/>\narbitration is with reference to assessment of an income which was not<br \/>\nsubjected to TDS by the payer of such income (deductor in default) and<br \/>\nan order under section 201 of the Act has been passed against such<br \/>\ndeductor in default, then such deductor in default would not be required<br \/>\nto pay the corresponding TDS amount. However, he would be required<br \/>\nto pay the interest under sub-section (IA) of section 201 of the Act. If<br \/>\nsuch levy of interest under sub-section (IA) of section 201 qualifies for<br \/>\nVivad se Vishwas, the deductor in default can settle this dispute at 25%<br \/>\nor 30% of the disputed interest, as the case may be, by filing up the<br \/>\nrelevant schedule of disputed interest.<br \/>\n33. Where DRP order passed on or after 1st July, 2012 and before 1st<br \/>\nJune, 2016 have given relief to assessee and Department has filed<br \/>\nappeal, how assessed tax to be calculated?<br \/>\nIf department appeal is required to be settled, then against that appeal<br \/>\nthe appellant is required to pay only 50% of the amount that is otherwise<br \/>\npayable if it was his appeal.<br \/>\n34. Appeals against assessment order and against penalty order are filed<br \/>\nseparately on same issue. Hence there are separate appeals for both.<br \/>\nIn such a case how disputed tax to be calculated?<br \/>\nPlease see question no. 8. Further, it is clarified that if the appellant has<br \/>\nboth appeal against assessment order and appeal against penalty relating<br \/>\nto same assessment pending for the same assessment year, and he<br \/>\nwishes to settle tbe appeal against assessment order (with penalty appeal<br \/>\nautomatically covered), he is required to give details of both appeals in<br \/>\none declaration form for that year. However, in the annexure he is<br \/>\nrequired to fill only the schedule relating to disputed tax.<br \/>\n35. If there is substantive addition as well as protective addition in the<br \/>\ncase of same assessee for different assessment year, how will that be<br \/>\ncovered? Similarly if there is substantive addition in case of one<br \/>\nassessee and protective addition on same issue in the case of another<br \/>\nassessee, how will that be covered under Vivad se Vishwas?<br \/>\nIf the substantive addition is eligible to be covered under Vivad se<br \/>\nVlshwas, then on settlement of dispute related to substantive addition<br \/>\nAO shall pass rectification order deleting the protective addition relating<br \/>\nto the same issue in the case of the assessee or in the case of another<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No<br \/>\nAnswer:<br \/>\nQuestion uo<br \/>\nAnswer:<br \/>\nQuestion no<br \/>\nassessee.<br \/>\n36. In a case ITAT has passed order giving relief on two issues and<br \/>\nconfirming three issues. Time to file appeal has not expired as on<br \/>\nspecified date. The taxpayer wishes to file declaration for the three<br \/>\nissues which have gone against him. What about the other two issues<br \/>\nas the taxpayer is not sure ifthe department will file appeal or not?<br \/>\nThe Vlvad se Vishwas allow declaration to be filed even when time to<br \/>\nfile appeal has not expired considering them to be a deemed appeal.<br \/>\nVivad se Vishwas also envisages option to assessee to file declaration<br \/>\nfor only his appeal or declaration for department appeal or declaration<br \/>\nfor both. Thus, in a given situation the appellant has a choice, he can<br \/>\nonly settle his deemed appeal on three issues, or he can settle<br \/>\ndepartment deemed appeal on two issues or he can settle both. If he<br \/>\ndecides to settle only his deemed appeal, then department would be free<br \/>\nto file appeal on the two issues (where the assessee has got relief) as per<br \/>\nthe extant procedure laid down and directions issued by the CBDT.<br \/>\n37. There is no provision for 50% concession in appeal pending in HC on<br \/>\nan issue where the assessee has got reliefon that issue from the SC?<br \/>\nIf the appellant has got decision in his favour from SC on an issue, there<br \/>\nis no dispute now with regard to that issue and he need not settle that<br \/>\nissue. If that issue is part of the multiple issues, the disputed tax may be<br \/>\ncalculated on other issues considering nil tax on this issue.<br \/>\n38. Addition was made uls 143(3) on two issues whereas appealfiled only<br \/>\nfor one addition. Whether interest and penalty be waived for both<br \/>\nadditions.<br \/>\nUnder Vivad se Vishwas, interest and penalty will be waived only in<br \/>\nrespect of the issue which is disputed in appeal and for which<br \/>\ndeclaration is filed. Hence, for the undisputed issue, the tax, interest and<br \/>\npenalty shall be payable.<br \/>\n39. DRP has issued directions confirming all the proposed additions in<br \/>\nthe draft order and the A0 has passed the order accordingly. The<br \/>\nissues confirmed by DRP include an issue on which the taxpayer has<br \/>\ngot favourable order from ITAT (not reversed by HC or SC) in an<br \/>\nearlier year. The time limit tofile appeal in ITAT is still available. The<br \/>\ntaxpayer is eligible for Vivad se Vishwas treating the situation as<br \/>\ntaxpayer&#8217;s deemed appeal in ITAT. In this case how will disputed tax<br \/>\nbe calculated? Will it be 100% on the issue allowed by ITAT in earlier<br \/>\nyears or 50%?<br \/>\nAnswer:<br \/>\nIn this case, on the issue where the taxpayer has got relief from ITAT in<br \/>\nan earlier year (not reversed by He or SC) the disputed tax shall be<br \/>\ncomputed at half of normal rate of 100%, 110%, 125% or 135%, as the<br \/>\ncase maybe.<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\n40. Where there are two appealsflIed for an assessment year- one by the<br \/>\nappellant and one by the tax department, whether the appellant can<br \/>\nopt for only one appeal? If yes, how would the disputed tax be<br \/>\ncomputed?<br \/>\nThe appellant has an option to opt to settle appeal filed by it or appeal<br \/>\nfiled by the department or both. Declaration form is to be filed<br \/>\nassessment year wise i.e. only one declaration for one assessment year.<br \/>\nFor different assessment years separate declarations have to be filed. So<br \/>\nthe appellant needs to specify in the declaration form whether he wants<br \/>\nto settle his appeal, or department&#8217;s appeal in his case or both for a<br \/>\nparticular assessment year. The computation of tax payable would be<br \/>\ncarried out accordingly.<br \/>\n&#8220;QUESTIONS RELATED TO PROCEDURE (Q. No. 41-50)&#8221;<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\n41.<br \/>\n42.<br \/>\n43.<br \/>\nHow much time shall be availablefor paying the taxes after filing a<br \/>\ndeclaration under the Vivad se Vishwas?<br \/>\nAs per clause 5 of Vivad se Vishwas, the DA shall determine the<br \/>\namount payable by the declarant within fifteen days from the date of<br \/>\nreceipt of the declaration and grant a certificate to the declarant<br \/>\ncontaining particulars of tbe tax-arrear and the amount payable after<br \/>\nsuch determination. The declarant shall pay the amount so determined<br \/>\nwithin fifteen days of the date of receipt of the certificate and intimate<br \/>\nthe details of such payment to the DA in the prescribed form.<br \/>\nThereafter, the DA shall pass an order stating that the declarant has<br \/>\npaid the amount. It may be clarified that 15 days is outer limit. The<br \/>\nDAs shall be instructed to grant a certificate at an early date enabling<br \/>\nthe appellant to pay the amount on or before 31st March, 2020 so that<br \/>\nhe can take benefit of reduced payment to settle the dispute.<br \/>\nIf taxes are paid after availing the benefits of the Vivad se Vishwas<br \/>\nand later the taxpayer decides to take refund of these taxes paid,<br \/>\nwould it be possible?<br \/>\nNo. Any amount paid in pursuance of a declaration made under the<br \/>\nVivadse Vishwas shall not be refundable under any circumstances.<br \/>\nWhere appeals are withdrawn from the appellate forum, and the<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAuswer:<br \/>\n44.<br \/>\n45.<br \/>\n46.<br \/>\ndeclarant is declared to be ineligible under the Vlvad se Vishwas by<br \/>\nDA at the stage of determination of amount payable under section<br \/>\n5(1) or, amount determined by DA is at variance ofamount declared<br \/>\nby declarant and declarant is not agreeable to DA&#8217;s determination of<br \/>\namount payable, then whether the appeals are automatically<br \/>\nreinstated or a separate application needs to be filed for reinstating<br \/>\nthe appeal before the appellate authorities<br \/>\nUnder the amended procedure no appeal is required to be withdrawn<br \/>\nbefore the grant of certificate by DA. After the grant of certificate by<br \/>\nDA under clause 5, the appellant is required to withdraw appeal or<br \/>\nwrit or special leave petition pending before the appellant forum and<br \/>\nsubmit proof of withdrawal with intimation of payment to the DA as<br \/>\nper the same clause. Where assessee has made request for withdrawal<br \/>\nand such request is under process, proof of request made shall be<br \/>\nenclosed.<br \/>\nSimilarly in case of arbitration, conciliation or mediation, proof of<br \/>\nwithdrawal of arbitration\/conciliation\/mediation is to be enclosed<br \/>\nalong with intimation ofpayment to the DA.<br \/>\nClause 5(2) requires declarant to pay amount determined by DA<br \/>\nwithin 15 days of receipt of certificate from DA. Clarification is<br \/>\nrequired on whether declarant is to also intimate DA about fact of<br \/>\nhaving made payment pursuant to declaration within the period of<br \/>\n15 days?<br \/>\nAs per clause 5(2), the declarant shall pay the amount determined<br \/>\nunder clause 5(1) within fifteen days of the date of receipt of the<br \/>\ncertificate and intimate the details of such payment to the DA in the<br \/>\nprescribed form and thereupon the DA shall pass an order stating that<br \/>\nthe declarant has paid the amount.<br \/>\nWill DA also pass order granting expressly, immunity from levy of<br \/>\ninterest and penalty by the A() as well as immunity from<br \/>\nprosecution?<br \/>\nAs per clause 6, subject to the provisions of clause 5, the DA shall not<br \/>\ninstitute any proceeding in respect of an offence; or impose or levy<br \/>\nany penalty; or charge any interest under the Income-tax Act in<br \/>\nrespect of tax arrears. This shall be reiterated in the order under<br \/>\nsection 5(2) passed by DA.<br \/>\nWhether DA can amend his order to rectify any patent errors?<br \/>\nYes, the DA shall be able to amend his order under clause 5 to rectify<br \/>\nQuestion No.<br \/>\nAuswer:<br \/>\nQuestiou No<br \/>\nAnswer:<br \/>\nQuestion no<br \/>\nAnswer:<br \/>\nQuestion no<br \/>\nAnswer:<br \/>\n47.<br \/>\n48.<br \/>\n49.<br \/>\n50.<br \/>\nany apparent errors.<br \/>\nWhere tax determined by DA is not acceptable can appeal be filed<br \/>\nagainst the order of designated authority before [TAT, Iligh Court<br \/>\nor Supreme Court?<br \/>\nNo. As per clause 4(7), no appellate forum or arbitrator, conciliator or<br \/>\nmediator shall proceed to decide any issue relating to the tax arrears<br \/>\nmentioned in the declaration in respect of which order is passed by the<br \/>\nDA or the payment of sum determined by the DA.<br \/>\nThere is no provision for withdrawal of appeal\/writ\/Sl.P by the<br \/>\ndepartment on settlement ofdispute<br \/>\nOn intimation of payment to the DA by the appellant pertaining to<br \/>\ndepartment appeal\/writ\/SLP, the department shall withdraw such<br \/>\nappeal\/writ\/SLP.<br \/>\nOnce declaration is filed under Vivad se Vishwas, and for financial<br \/>\ndifficulties, payment is not made accordingly, will the declaration be<br \/>\nnull and void?<br \/>\nYes it would be void.<br \/>\nWhere the demand in case ofan assessee has been reduced partly or<br \/>\nfully by giving appeal effect to the order of appellate forum, how<br \/>\nwould the umount payable under Vivad se Vishwas be adjusted?<br \/>\nIn such cases, after getting the proof of payment of the amonnt<br \/>\npayable under Vivad se Vishwas, the AO shall pass order under the<br \/>\nrelevant provisions of Vivad se Vishwas to create demand in case of<br \/>\nassessee against which the amount payable shall be adjusted.<br \/>\n}<br \/>\n&#8220;QUESTIONS RELATED TO CONSEQUENCES (Q. No. 51-55)&#8221;<br \/>\nQuestiou No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\n51.<br \/>\n52.<br \/>\nWill there be immunity from prosecution?<br \/>\nYes, clanse 6 provides for immunity from prosecution to a declarant in<br \/>\nrelation to a tax arrears for which declaration is filed under Vivad se<br \/>\nVishwas and in whose case an order is passed by the DA that the<br \/>\namount payable under Vivad se Vishwas has been paid by the<br \/>\ndeclarant.<br \/>\nWill the result of this Vivad se Vishwas be applied to same issues<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAnswer:<br \/>\nQuestion No.<br \/>\nAuswer<br \/>\n53.<br \/>\n54.<br \/>\n55.<br \/>\npending before AO?<br \/>\nNo, only the issues covered in the declaration are settled in the dispute<br \/>\nwithout any prejudice to same issues pending in other cases. It has<br \/>\nbeen clarified that malcing a declaration under this Act shall not<br \/>\namount to conceding the tax position and it shall not be lawful for the<br \/>\nincome-tax authority or the declarant being a part in appeal or writ or<br \/>\nin SLP to contend that the declarant or the income-tax authority, as the<br \/>\ncase may be, has acquiesced in the decision on the disputed issue by<br \/>\nsettling the dispute.<br \/>\nIf loss is not allowed to be adjusted while calculating disputed tax,<br \/>\nwill that loss be allowed to be carriedforward?<br \/>\nAs per the amendment proposed in Vivad se Vishwas, in a case where<br \/>\nthe dispute in relation to an assessment year relates to reduction of<br \/>\nMinimum Alternate Tax (MAT) credit or reduction of loss or<br \/>\ndepreciation, the appellant shall have an option either to (i) include the<br \/>\namount of tax related to such MAT credit or loss or depreciation in the<br \/>\namount of disputed tax and carry forward the MAT credit or loss or<br \/>\ndeprecation or (ii) to carry forward the reduced tax credit or loss or<br \/>\ndepreciation. CBDT will prescribe the manner of calculation in such<br \/>\ncases.<br \/>\nIf the taxpayer avails Vivad se Vishwas for Transfer Pricing<br \/>\nadjustment, will provisions of section 92CE of the Act apply<br \/>\nseparately?<br \/>\nYes, secondary adjustment under section nCE will be applicable.<br \/>\nHowever, it may be noted that the provision of secondary adjustment<br \/>\nas contained in section 92CE of the Act is not applicable for primary<br \/>\nadjustment made in respect of an assessment year commencing on or<br \/>\nbefore the I&#8221; day of April 2016. That means, if there is any primary<br \/>\nadjustment for assessment year 2016-17 or earlier assessment year, it<br \/>\nis not subjected to secondary adjustment under section nCE of the<br \/>\nAct.<br \/>\nThe appellant has settled the dispute under Vivad se Vishwas in an<br \/>\nassessment year. Whether it is open for Revenue to take a stand that<br \/>\nthe additions have been accepted by the appellant and hence he<br \/>\ncannot dispute it in future assessment years?<br \/>\nPlease refer answer to question no 52. It has been clarified in<br \/>\nExplanation to clause 5 that making a declaration under Vivad se<br \/>\nVishwas shall not amount to conceding the tax position and it shall not<br \/>\n~<br \/>\n(Ankur Goyal)<br \/>\nUnder Secretary to the Govt. of India<br \/>\nbe lawful for tbe income-tax authority or the declarant being a part in<br \/>\nappeal or writ or in SLP to contend that the declarant or the incometax<br \/>\nauthority, as the case may be, has acquiesced in the decision on the<br \/>\ndisputed issue by settling the dispute.<br \/>\nCopy to:<br \/>\n1. PS to FM\/ OSD to FM\/ PS to MoS(F)\/ OSD to MoS(F)<br \/>\n2. PPS to Secretary (Revenue)<br \/>\n3. Chairman, CEnT &#038; All Members, CBDT<br \/>\n4. All PI&#8221;. DGsIT! PI&#8217;. CsIT<br \/>\n5. All Joint Secretaries! CsITI Directors\/ Deputy Secretaries! Under Secretaries ofCBDT<br \/>\n6. The C&#038;AG of India<br \/>\n7. The JS &#038; Legal Adviser, Ministry of Law &#038; Justice, New Delhi<br \/>\n8. CIT (M&#038;TP), Official SpokespersonofCBDT<br \/>\n9, 0\/0 PI&#8217;.DOlT (Systems) for uploading on offlcial website<br \/>\n10. JCIT (Database Cell) for uploading on wwwirSQfficersonlinc.gov-in<br \/>\n011.0 .&#8217;).0-.0.<br \/>\n(Ankur Goyal)<br \/>\nUnder Secretary to the Govt. of India<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The CBDT has vide Circular No.7\/2020 dated 4th March, 2020 provided clarification on a number of controversial issues relating to the Direct Tax Vivad se Vishwas Bill, 2020<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/download-cbdt-clarifications-faqs-on-the-direct-tax-vivad-se-vishwas-bill-2020\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-14657","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/14657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=14657"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/14657\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=14657"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=14657"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=14657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}