Guided by “Sabka Saath, Sabka Vikas, Sabka Vishwas”, the Finance Minister Smt. Nirmala Sitharaman had introduced a new No Dispute but Trust Scheme – ‘Vivad Se Vishwas’ in the Budget 2020 in the Lok Sabha on 5th February, 2020. As per the combined reading of the amended The Direct Tax Vivad se Vishwas Bill, 2020 introduced on 14.02.2020 and Clarifications issued by CBDT vide Circular No. 07/2020 on 04.03.2020, the issues regarding the set aside matters were squarely resolved as under:
- In case of an order passed by any Appellate Authority with the direction to set aside a matter back to the file of the Assessing Officer [excluding the matters for which fresh assessment i.e. denovo assessment is to be carried on] for giving proper opportunity to the assessee or to carry out fresh examination of the issue with specific direction, the assessee can opt under Vivaad se Vishwas Scheme and pay the disputed tax.
- The disputed tax shall be the same tax (including surcharge and cess) calculated on the addition in respect of which the set-aside order was passed as if it was added again by AO.
It is to be noted that issues which are not covered in the Order of the Appellate Authority and therefore are not directed to be set-aside to the file of the Assessing Officer are eligible to be duly settled as per the general provision of this Act.
For better clarification regarding determination of the amount of disputed tax let us understand it through the following example:
|Sr. No.||Particulars||Scenario 1||Scenario 2|
|I||Addition by AO||Rs.50000/-||Rs. 75,000/-|
(Including Surcharge & Cess)
|IV||Decision of CIT(A)||Addition Confirmed||Addition Confirmed|
|V||Decision of ITAT||Addition Confirmed||Matter set aside to Assessing officer|
|VI||Option To opt Vivaad Se Vishwas Scheme||Can avail Scheme only if further appeal is filled or time limit to file appeal against the order has not expired||Can avail the scheme after paying the amount of disputed Tax of Rs. 23,400/-|
- In such cases assessee while filing the declaration form can indicate that with respect to the set-aside issues the appeal is pending with the Commissioner (Appeals).
Conclusion- The issues regarding the matters which are set aside to the file of Assessing officer by any Appellate authority can opt the scheme of ‘Vivad se Vishwas’ and simplify the Tax Litigation burdens and get quick redressal .
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