Ordinance for extension of time limits under Taxation and Benami Act

CA Richa Agarwal
-
0
Ordinance for extension of time limits under Taxation and Benami Act

The Union Finance & Corporate Affairs Minister Smt. Niramla Sitharaman announced several important relief measures taken by the Government of India in view of COVID-19 outbreak vide Press Release dated 24.03.2020, especially on statutory and regulatory compliance matters related to several sectors. In order to give effect to the announcements the government has brought in an Ordinance on 31.03.2020 which provides for extension of various time limits under the Taxation and Benami Acts.

Following are the decisions with respect to matters related to Direct Tax and Benami:

  1. Extension of last date of filing of original as well as revised Income-tax returns for the FY 2018-19 (AY 2019-20) to 30th June, 2020.
  2. Extension of Aadhaar-PAN linking date to 30th June, 2020.
  3. The date for making various Investment/ Payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30th June, 2020. Hence the investment/payment can be made up to 30.06.2020 for claiming the deduction under these sections for FY 2019-20.
  4. The date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been extended to 30th June 2020. Therefore, the investment/ construction/ purchase made up to 30.06.2020 shall be eligible for claiming deduction from capital gains arising during FY 2019-20.
  5. The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also extended to 30.06.2020 for the units which received necessary approval by 31.03.2020.
  6. The date for passing of order or issuance of notice by the authorities under various Direct Taxes & Benami Law has also been extended to 30.06.2020.
  7. It has provided that reduced rate of interest of 9% shall be charged for non-payment of Income-tax (e.g. advance tax, TDS, TCS) Equalization Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which are due for payment from 20.03.2020 to 29.06.2020 if they are paid by 30.06.2020. Further, no penalty/ prosecution shall be initiated for these non-payments.
  8. Under Vivad se Vishwas Scheme, the date has also been extended up to 30.06.2020. Hence, declaration and payment under the Scheme can be made up to 30.06.2020 without additional payment.

A special fund “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” has been set up for providing relief to the persons affected from the outbreak of Corona virus. The donation made upto 30th June 2020 to the PM CARES Fund shall be eligible for 100% deduction under section 80G of the IT Act. Further, the limit on deduction of 10% of gross income shall also not be applicable. Hence, any person including corporate paying concessional tax on income of FY 2020-21 under new regime can make donation to PM CARES Fund up to 30.06.2020 and can claim deduction u/s 80G against income of FY 2019-20 and shall also not lose his eligibility to pay tax in concessional taxation regime for income of FY 2020-21.

Disclaimer: This article doesn’t constitute professional advice. The author does not represent that the said information is correct and complete in all regards. The views contained in this article are personal views of the author and may change depending upon underlying facts and circumstances. Judicial and legal authorities may not subscribe to the views of author and can take different view. Readers of this article are advised to take professional advice before taking any course of action or decision. The author does not assume any responsibility or liability in respect of the information contained in this article or for any decision/ course of action readers may take based on information contained in this article.

Transfer of ITC in case of business reorganization

CA Harshi Modi
-
0
Transfer of ITC in case of business reorganization

Transfer of ITC in case of sale, merger, demerger amalgamation, lease or transfer of business:-

  • As per section 18(3) of CGST Act, 2017 in case of change in the constitution of registered person on account of sale, merger, demerger, amalgamation, lease or transfer of business with specific provision of transfer of liabilities, the transferor shall be allowed to transfer ITC which remains Unutilized in his electronic credit ledger (as on the date of filing GST ITC-02) to the transferee.
  • As per Rule 41(1) of CGST Rules, 2017, the transferor has to file GST ITC -02 on common portal regarding the details of transfer along with a request to transfer the unutilized ITC to the transferee.
  • The transferor shall be at liberty to determine the amount to be transferred under each head (CGST, SGST, IGST and compensation cess) subject to the ITC balance available with the transferor as on effective date of merger and acquisition as clarified in circular No. 133 03/2020-GST.
  • The transferor is required to file GST ITC-02 only in those states where both the transferor and transferee are registered as clarified in Circular No. 133 03/2020-GST. Let’s understand this with the help of an example. ABC is transferor having registration in UP and MP having two assets in each state. XYZ is the transferee having registration in UP and MP. If all the assets of ABC are to be transferred to XYZ’s business unit having registration in UP, whether it would be logical to transfer ITC under Rule 41(1) to both the units of XYZ? As the asset is to be used by XYZ’s business unit having registration in UP so same must be transferred only to XYZ’s business unit having registration in UP not to the XYZ’s business unit having Registration in MP. Thus in the above case, ABC is required to file GST ITC-02 only for his registration in the state of U.P.
  • Proviso to rule 41(1) is applicable for all forms of business organization that results in partial transfer of business assets along with liabilities. In case of demerger, ITC (CGST+SGST+IGST) as available in electronic credit ledger as on date of filing form GST ITC-02 shall be apportioned in the ratio of value of assets of new units as specified in the demerger scheme.

As per the explanation to rule inserted WEF 29.03.2019 “Value of assets” means  the value of  the entire assets of the business (Whether or not ITC has been availed thereon ) as on the appointed date of demerger as specified in demerger Scheme.

Value of assets shall be taken on state level basis and not at the all India level. E.g. A Company ABC is registered in two states of Gujarat and Maharashtra. Its total value of assets is worth Rs.100 crore, while its assets in State of Gujarat and Maharashtra are Rs 60 crore and Rs 40 crore respectively. It demerges a part of its business to company XYZ. As a part of such demerger, assets of ABC amounting to Rs 30 Crore are transferred to company XYZ in State of Gujarat while assets amounting to Rs.10 crore only are transferred to XYZ  in State of Maharashtra (Total assets amounting to Rs 40 crore at all-India level are transferred from ABC to XYZ). The unutilized ITC of ABC in State of Gujarat shall be transferred to XYZ on the basis of ratio of value of assets in State of GUJARAT, i.e. 30/60 = 0.5 and not on the basis of all-India ratio of value of assets, i.e. 40/100=0.4. Similarly, unutilized ITC of ABC in State of Maharashtra will be transferred to XYZ in ratio of value of assets in State of Maharashtra i.e. 10/40 = 0.25.

  • As per rule 41(2), the transferor shall also submit the copy of certificate issued by practicing chartered or cost accountant certifying that such transfer has been done with the specific provision of transfer of liabilities.
  • As per rule 41(3), the transferee shall on the common portal, accept the details submitted by transferor and upon such acceptance, the utilized ITC as specified in ITC-02 shall be credited to his electronic credit ledger.
  • As per rule 41(4),the inputs and capital goods so transferred shall be duly accounted for by the transferee in his books of accounts.

Procedures to be followed in case of death of sole proprietor:

Application for cancellation of registration shall be made in form GST REG-16 by legal heir/successor of the deceased. But before that the transferee/successor shall apply for registration under GST Act in REG-01 only thereafter legal heir can file application for cancellation of registration.

Now if legal heir continue the business it will be considered as transfer of business and credit shall be allowed to be transferred as per section 18(3) of CGST Act, read with rule 41 of CGST Rules.GST ITC-02 should be filed before filing application for cancellation of registration. On acceptance by transferee/Successor, Unutilized ITC as specified in ITC-02 shall be credited to the electronic credit ledger of transferee.

Procedure for filing ITC-02

By Transferor after log in to GSTN portal:-

Services>Returns>ITC Forms> Online preparation of ITC-02> Transferor has to entered the GSTIN of transferee and amount of matched ITC to be transferred> Enter the particulars of certifying chartered /cost accountant > Attach the certificate > Upload the form using DSC or EVC.

By transferee after log in to GST portal:-

Services> ITC02- pending for actions> Click on ARN link> Accept/Reject> File it with DSC or EVC for the acceptance of ITC.  On such Acceptance transferred inputs and capital goods should be properly accounted in the books of accounts.

On Acceptance by the acquiring merged entity (transferee), The ITC will be transferred to the transferee and Electronic credit ledger of (transferee) Acquiring Entity will get updated.

Clarification regarding Set-aside matters under Direct Tax Vivad Se Vishwas Act-2020

Sneh Mehta
-
0
Clarification regarding Set-aside matters under Direct Tax Vivad Se Vishwas Act-2020

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:

  1. 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.
  2. 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/-
II Disputed Tax

(Including Surcharge & Cess)

Rs.15,600/- Rs. 23,400/-
III Interest Rs.6,250/- Rs. 8,750/-
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/-
  1. 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 .

Disclaimer

This article doesn’t constitute professional advice. The author does not represent that the said information is correct and complete in all regards. The views contained in this article are personal views of the author and may change depending upon underlying facts and circumstances. Judicial and legal authorities may not subscribe to the views of author and can take different view. Readers of this article are advised to take professional advice before taking any course of action or decision. The author does not assume any responsibility or liability in respect of the information contained in this article or for any decision/ course of action readers may take based on information contained in this article.

Can assessee avail Vivad se Vishwas scheme for some of the issues and not for other issues in a pending appeal?

CA Nilisha Shah
-
0
Can assessee avail Vivad se Vishwas scheme for some of the issues and not for other issues in a pending appeal?
Under the proposed Vivad Se Vishwas scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty provided he pays by March 31, 2020. Those who avail this scheme after March 31, 2020 will have to pay some additional amount of 10% of disputed tax. The income tax (I-T) department has so far approached 5,627 entities to avail of the Vivad se Vishwas, or direct tax dispute settlement, scheme. Those approached include large taxpayers, mostly foreign banks, which have disputes relating to international taxes. If the tax arrears include tax on issues that are excluded from the Vivad se Vishwas, such cases are not eligible to file declaration under Vivad se Vishwas. There is no provision under Vivad se Vishwas to settle part of a pending dispute in relation to an appeal or writ or SLP for an assessment year. For one pending appeal, all the issues are required to be settled and if anyone of the issues make the declaration invalid, no declaration can be filed. Picking and choosing issues for settlement of an appeal is not allowed. With respect to one order, the appellant must choose to settle all issues and then only he would be eligible to file declaration.  
Disclaimer
This article doesn’t constitute professional advice. The author does not represent that the said information is correct and complete in all regards. The views contained in this article are personal views of the author and may change depending upon underlying facts and circumstances. Judicial and legal authorities may not subscribe to the views of author and can take different view. Readers of this article are advised to take professional advice before taking any course of action or decision. The author does not assume any responsibility or liability in respect of the information contained in this article or for any decision/ course of action readers may take based on information contained in this article.

The taxpayer get a refund under Vivad Se Vishwas Scheme if more tax already paid?

CA Nilisha Shah
-
0
The taxpayer get a refund under Vivad Se Vishwas Scheme if more tax already paid?
Under the proposed Vivad Se Vishwas Scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty provided he pays by March 31, 2020. Those who avail this scheme after March 31, 2020 will have to pay some additional amount of 10% of disputed tax. Under the similar scheme of indirect taxation “Sabka Vishwas”, taxpayer was not allowed refund of amount already paid if tax was paid in excess of the amount payable under the scheme. However, under “Vivad se Vishwas Scheme”, if a tax payer availing the income tax dispute settlement scheme- Vivad se Vishwas – has already paid the disputed tax while litigation is on-going then he/she can get a refund of the amount paid which is in excess of the tax payable under the scheme. Disclaimer This article doesn’t constitute professional advice. The author does not represent that the said information is correct and complete in all regards. The views contained in this article are personal views of the author and may change depending upon underlying facts and circumstances. Judicial and legal authorities may not subscribe to the views of author and can take different view. Readers of this article are advised to take professional advice before taking any course of action or decision. The author does not assume any responsibility or liability in respect of the information contained in this article or for any decision/ course of action readers may take based on information contained in this article.

Amount Payable by Declarant under Vivad se Vishwas Scheme

Khushi Surana
-
0
Amount Payable by Declarant under Vivad se Vishwas Scheme
On February 5, the Honourable Finance Minister Mrs. Nirmala Sitharaman introduced ‘Vivad Se Vishwas’ Bill , within a few days of its announcement of the Finance Budget. It aims to provide for resolution of disputed direct taxes in a speedy manner. Finance Minister had said that “in the past our Government has taken several measures to reduce tax litigations. The Finance Minister had clarified that “under the proposed Vivad Se Vishwas scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty provided he pays by March 31, 2020. Those who avail this scheme after March 31, 2020 will have to pay some additional amount” The provisions of the Bill regarding the amount payable by the declarant is provided as under: Subject to the provisions of this Act, where a declarant files under the provisions of this Act on or before the last date, a declaration to the designated authority in accordance with the provisions of section 4 in respect of tax arrear, then, notwithstanding anything contained in the Income-tax Act or any other law for the time being in force, the amount payable by the declarant under this Act shall be as under. Interpretation of the provisions of the Bill is as follows: The provision says that those declarants who enroll into the scheme on or before 31.03.2020 will be at an advantage of having to pay a lower amount than those who enroll on or after 01.04.2020. The last date of enrolling into the scheme is 30.06.2020. There are 3 kinds of scenarios possible viz: 1.All eligible Cases (except search u/s 132 or s.132A): Tax arrears = Disputed tax + interest chargeable/ charged on such disputed tax + penalty leviable/levied.
On or before 31.03.2020 On or before 01.04.2020
100% of the Disputed tax 110% of the Disputed tax (subject to the maximum amount of the aggregate of tax arrears, interest and penalty)
2. Cases under search u/s 132 or s. 132A: Disputed tax + interest chargeable/ charged on such disputed tax + penalty leviable/levied.
On or before 31.03.2020 On or before 01.04.2020
125% of Disputed tax (subject to the maximum amount of the aggregate of tax arrears, interest on disputed tax and penalty)  135% of Disputed tax (subject to the maximum amount of the aggregate of tax arrears, interest on disputed tax and penalty)
3. Cases without the disputed tax element: Tax arrears = Disputed interest and/or disputed penalty and/or disputed fee.
On or before 31.03.2020 On or before 01.04.2020
25% of disputed interest/ penalty/disputed fee  30% of disputed interest/ penalty/disputed fee
Note:  In case of taxpayers appeal, if any issue is already covered in favor of the taxpayer by the appellate authority, the amount payable is reduced to 50% of the amount stated above.

Disclaimer

This article doesn’t constitute professional advice. The author does not represent that the said information is correct and complete in all regards. The views contained in this article are personal views of the author and may change depending upon underlying facts and circumstances. Judicial and legal authorities may not subscribe to the views of author and can take different view. Readers of this article are advised to take professional advice before taking any course of action or decision. The author does not assume any responsibility or liability in respect of the information contained in this article or for any decision/ course of action readers may take based on information contained in this article.

Restriction in Availment of Credit in terms of sub rule (4) of rule 36 of CGST Rules,2017

Neha Kabra
-
0
Restriction in Availment of Credit in terms of sub rule (4) of rule 36 of CGST Rules,2017
As per CGST Rule 36(4) : Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 % of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A. (Earlier the said restriction was 20% of eligible Invoices). This amendment is effective from 1st January,2020. The said rule had created a lot of confusion among the taxpayers therefore, a clarifying circular as stated below was provided. Various issues relating to implementation of the said sub-rule have been examined and the clarification in Circular No. 123/42/2019 :  
  1. The restriction is not imposed through the common portal and it is the responsibility of the taxpayer that credit is availed in terms of the said rule and therefore, the availment of restricted credit in terms of sub-rule (4) of rule 36 of CGST Rules shall be done on self-assessment basis by the tax payers.
  2. The restriction of availment of ITC is imposed only in respect of those invoices / debit notes. Therefore, taxpayers may avail full ITC in respect of IGST paid on import, documents issued under RCM, credit received from ISD The restriction of 36(4) will be applicable only on the invoices / debit notes on which credit is availed after 09.10.2019.
  3. The taxpayer have to ascertain the ITC from his auto populated FORM GSTR 2A as available on the due date of filing of FORM GSTR-1 under sub-section (1) of section 37. i.e., 11th of the succeeding month for monthly return filers and for quarterly return filers last day of the month succeeding the end of the quarter.
  4. The ITC to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers, shall not exceed 10 per cent (Earlier the said restriction was 20% of eligible Invoices) of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers.
  5. The balance ITC may be claimed by the taxpayer in any of the succeeding months provided details of requisite invoices are uploaded by the suppliers. He can claim proportionate ITC as and when details of some invoices are uploaded by the suppliers provided that credit on invoices, the details of which are not uploaded remains under 20 per cent of the eligible input tax credit, the details of which are uploaded by the suppliers.
  The circular though provided clarification on some questions of taxpayers, it failed to address the situation as to how the credit will be availed where the supplier is Quarterly return filer and the recipient is monthly return filer. This mechanism would have a great impact on the working capital of the taxpayers. Restriction imposed in Rule 36(4) will certainly impact working capital of taxpayers as they must pay more taxes when suppliers file belated returns in Form GSTR-1.Further, the taxpayer would not be able to claim refund of excess tax paid by them due to default of the suppliers. Also, this reconciliation exercise of ITC is going to consume lot of man hours every month. Even after the issuance of a clarificatory circular the questions which remain unanswered seem to be plenty. The practical implementation of this rule looks very challenging and the trade and industry should brace themselves to ensure proper compliance with the rule to avoid uncertainties and litigation to the extent possible. The practical issues to keep GSTR 2A at different dates in soft/hard form and compare the same with the previous ones to take the fresh credits added subsequently and to ensure the cap set under Rule 36 (4) has complied, would make the compliance of this rule cumbersome. The author’s advice for the compliance of this rule is to take the credit as reflecting in GSTR2A by matching it to the invoices as shown in their purchase registers. Disclaimer: This article doesn’t constitute professional advice. The author does not represent that the said information is correct and complete in all regards. The views contained in this article are personal views of the author and may change depending upon underlying facts and circumstances. Judicial and legal authorities may not subscribe to the views of author and can take different view. Readers of this article are advised to take professional advice before taking any course of action or decision. The author does not assume any responsibility or liability in respect of the information contained in this article or for any decision/ course of action readers may take based on information contained in this article.

Clarifications on provisions of the Direct Tax Vivad se Vishwas Bill, 2020

itatorders Admin
-
0
Clarifications on provisions of the Direct Tax Vivad se Vishwas Bill, 2020
The Central Board of Direct Taxes ( CBDT ) has issued clarifications on Direct Tax Vivad se Vishwas Scheme, 2020. During the Union Budget. 2020 presentation, the ‘Vivad se Vishwas’ Scheme was announced to provide for dispute resolution in respect of pending income tax litigation. Pursuant to Budget announcement, the Direct Tax Vivad se Vishwas Bill, 2020 (Vivad se Vishwas) was introduced in the Lok Sabha on 5th Feb 2020. The objective of Vivad se Vishwas is to inter alia 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. Subsequently, based on the representations received from the stakeholders regarding its various provisions, official amendments to Vivad se Vishwas have been proposed. These amendments seek to widen the scope of Vivad se Vishwas and reduce the compliance burden on taxpayers. The CBDT has addressed the several queries have been received from the stakeholders seeking clarifications in respect of various provisions. To read the full text of the Clarifications issued by CBDT Click below. CBDT issue Clarifications on Direct Tax Vivad se Vishwas Scheme, 2020

Filling of Declaration Form and Particulars to be furnished for getting benefit of Vivad se Vishwas Scheme, 2020.

Vivek Jhaveri
-
0
Filling of Declaration Form and Particulars to be furnished for getting benefit of Vivad se Vishwas Scheme, 2020.
On 5th February 2020, the Honourable Finance Minister of India, Mrs. Nirmala Sitharaman introduced The Direct Tax Vivad se Vishwas Bill, 2020 in the Parliament. After introduction of the Bill, a notice for moving amendments to the provisions of the Bill has been proposed to the Parliament on 14th Feb, 2020, which is subject to the approval of and passing by the Parliament and receiving assent of the President. The Procedural requirement of the scheme is as follows.
  1. To avail this benefit the aggrieved taxpayer who is eligible to opt for this scheme has to file a declaration before the designated authority in such form as may be prescribed. The designated authority shall determine the amount payable by the declarant within 15 days of declaration and Grant a Certificate showing tax or amount to be paid and the manner in which it has to be paid.
  2. Upon the filling of declaration form by the aggrieved taxpayer, any appeal which is pending before Income Tax Appellate Tribunal or Commissioner of Income Tax Appeals shall be deemed to have been withdrawn from the date on which certificate is issued by the designated authority. If any appeal of the aggrieved taxpayer is pending before High court or Supreme Court of India against any order in respect of any tax arrears, the withdrawal of such appeal of writ petition with the permission of the relevant court only after submitting the proof of such withdrawal alongwith the intimation of payment to the designated authority.
  3. In regard to above if the aggrieved taxpayer has initiated any proceedings for arbitration, conciliation or mediation or has given notice under any law for the time being in force or has entered into any agreement by India with any other country or territory outside India then that taxpayer shall withdraw the claim, if any after acquiring the certificate from the designated authority and submit proof of such withdrawal alongwith the intimation of payment to the designated authority.
  4. Once certificate mentioning amount payable is issued to the aggrieved taxpayer, the aggrieved taxpayer within 15 days from the receipt of Certificate will have to pay the same & intimate the details of payment along with proof of withdrawal of appeal/writ. Further it is to be noted that the aggrieved taxpayer shall submit an undertaking waiving his or her right with regard to pursue any remedy or any claim in relation to relaxing the tax arrear which may be otherwise available to the taxpayer under any law.
The interesting point to note that is the declaration will be considered never to be made if below mentioned circumstances arise:
  1. If any material particular submitted in the declaration is found to be false at any stage.
  2. If the aggrieved taxpayer violates any of the conditions referred in the said Act.
  3. If the aggrieved taxpayer acts in any manner which violates the undertaking given by him or her.
If the aggrieved taxpayer does not act in accordance with any of the conditions as mentioned above then the withdrawal of appeal in such circumstances would be deemed to have be revived. If everything goes in accordance with the steps mentioned as above then the aggrieved taxpayer will get a final order conclusive against which no matter covered therein will ever be opened or investigated for persuasion . This is a great step initiated by the government to reduce tax from the aggrieved taxpayer. Download the Full copy of THE DIRECT TAX VIVAD SE VISHWAS BILL, 2020 Read with amendments here. Vivad-Se-Vishwas-Bill-FINAL AMENDED as on 03.03.2020 Disclaimer: This article doesn’t constitute professional advice. The author does not represent that the said information is correct and complete in all regards. The views contained in this article are personal views of the author and may change depending upon underlying facts and circumstances. Judicial and legal authorities may not subscribe to the views of author and can take different view. Readers of this article are advised to take professional advice before taking any course of action or decision. The author does not assume any responsibility or liability in respect of the information contained in this article or for any decision/ course of action readers may take based on information contained in this article.

Eligible Person under Vivad se Vishwas Scheme 2020

Shubham Agarwal
-
0
Eligible Person under Vivad se Vishwas Scheme 2020
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. Expectations are that the new scheme will work better than erstwhile similar scheme “The Direct Tax Dispute Resolution Scheme, 2016”, given the kind of cases that are in appeal. As per the combined reading of the The Direct Tax Vivad se Vishwas Bill, 2020 introduced on 05.02.2020 and amendments issued on 14.02.2020, the following person shall be eligible for the benefit under this scheme:  ‘(a) “appellant” means –– (i) a person in whose case an appeal or a writ petition or special leave petition has been filed either by him or by the income-tax authority or by both, before an appellate forum and such appeal or petition is pending as on the specified date;  Analysis: Any person whose appeal is pending before CIT/ITAT/HC/SC, any person whose writ petition is pending before HC/SC, any person whose special leave petition is pending before SC. Here any person also includes person in whose case appeal is filed by department in any of the above forums. The specified date for the Scheme is 31.01.2020. Hence the person/department should have any appeal/Writ/SLP pending before CIT/ITAT/SC/HC as on 31.01.2020. (ii) a person in whose case an order has been passed by the Assessing Officer, or an order has been passed by the Commissioner(Appeals) or the Income Tax Appellate Tribunal in an appeal, or by the High Court in a writ petition, on or before the specified date, and the time for filing any appeal or special leave petition against such order by that person has not expired as on that date; Analysis: The scope of appellant has been widened to include appealable orders as well. Cases where time limit of filing appeal has not expired as on specified date i.e 31.01.2020 have been included in this sub-clause. For example, Mr. X has filed an appeal before First Appeal Authority – CIT(A), and if CIT(A) has dismissed the appeal of Mr. X on 22.01.2020. So in this case, the due date of filing appeal before the Second Appeal Authority- ITAT expires after 60 days from the date of First Appeal Order i.e. 22.03.2020. Hence Mr. X will be termed as an appellant for the purpose of Vivad se Vishwas Scheme. (iii) a person who has filed his objections before the Dispute Resolution Panel under section 144C of the Income tax Act, 1961 and the Dispute Resolution Panel has not issued any direction on or before the specified date;  Analysis: Cases where assessee has filed any objection against draft order before Dispute resolution panel u/s. 144C of the Act are covered here. It is to be noted that objection should have been filed before DRP and Assessing officer both as per Sec 144C(2)(b). If DRP has not issued any direction then such cases are eligible for the scheme. If Dispute Resolution panel has issued any direction then the next clause of the scheme is attracted. (iv) a person in whose case the Dispute Resolution Panel has issued direction under sub-section (5) of section 144C of the Income-tax Act and the Assessing Officer has not passed any order under sub-section (13) of that section on or before the specified date; Analysis: Cases where DRP has issued any direction to Assessing Officer u/s 144C (5) upon receipt of objections from assessee under Sec 144C (2) and Assessing Officer has not passed the assessment order u/s. 144C (13) of the Act are covered here. (v) a person who has filed an application for revision under section 264 of the Income-tax Act and such application is pending as on the specified date. Analysis: Cases where application for revision has been filed before CIT/PCIT under section 264 of the Act are eligible under this clause. However this scheme would be applicable only when such application is pending on 31.01.2020. Further Sec 264 excludes all the order to which section 263 applies, hence the same is excluded from the benefit of the scheme indirectly. Conclusion- ‘Vivad se Vishwas’ will undisputedly benefit the interest of taxpayers looking for an expeditious and rapid settlement of their tax claims raised by the Department. It is an advantageous scheme for both the taxpayer and the revenue department.  You may Download the full Copy of THE DIRECT TAX VIVAD SE VISHWAS BILL, 2020 Read with amendments here. Vivad-Se-Vishwas-Bill-FINAL AMENDED as on 03.03.2020 Disclaimer This article doesn’t constitute professional advice. The author does not represent that the said information is correct and complete in all regards. The views contained in this article are personal views of the author and may change depending upon underlying facts and circumstances. Judicial and legal authorities may not subscribe to the views of author and can take different view. Readers of this article are advised to take professional advice before taking any course of action or decision. The author does not assume any responsibility or liability in respect of the information contained in this article or for any decision/ course of action readers may take based on information contained in this article.
1...282930...32Page 29 of 32