Official Amendments to Vivad Se Vishwas Scheme

Amendments to Vivad Se Vishwas Scheme are compiled here:

The Government has issued official amendments to Direct Tax Vivad se Vishwas Bill, 2020. Here are the salient features of the proposed amendments.

1. New definition of appellant in amended Vivad se Vishwas scheme

“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 [ Which will remain 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;

(iii) a person who has filed his objections before the Dispute Resolution Panel under section 144C of the Incometax Act, 1961 and the Dispute Resolution Panel has not issued any direction on or before the specified date;

(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; (v) a person who has filed an application for revision under section 264 of the Incometax Act and such application is pending as on the specified date.

2. New definition of disputed tax

“Disputed tax”, in relation to an assessment year or financial year, as the case may be, means theincome-tax, including surcharge and cess(hereafter in this clause referred to as the amount of tax) payable by the appellant under the provisions of the Income-tax Act, 1961, as computed hereunder:-

(A) in a case where any appeal, writ petition or special leave petition is pending before the appellate forum as on the specified date, the amount of tax that is payable by the appellantif such appeal or writ petition or special leave petition was to be decided against him;

(B) in a case where an order in an appeal or in writ petition has been passed by the appellate forum on or before the specified date, and the time for filing appeal or special leave petition against such order has not expired as on that date, the amount of tax payable by the appellant after giving effect to the order so passed;

(C) in a case where the order has been passed by the Assessing Officer on or before the specified date, and the time for filing appeal against such order has not expired as on that date, the amount of tax payable by the appellant in accordance with such order;

(D) in a case where objection filed by the appellant is pending before the Dispute Resolution Panel under section 144C of the Income-tax Act as on the specified date, the amount of tax payable by the appellant if the Dispute Resolution Panel was to confirm the variation proposed in the draft order;

(E) in a case where Dispute Resolution Panel has issued any direction under sub-section (5) of section 144C of the Income-tax Act and the Assessing Officer has not passed the order under sub-section (13) of that section on or before the specified date, the amount of tax payable by the appellant as per the assessment order to be passed by the Assessing Officer under sub-section (13) thereof;

(F) in a case where an application for revision under section 264 of the Income-tax Act is pending as on the specified date, the amount of tax payable by the appellant if such application for revision was not to be accepted.

In a case where Commissioner (Appeals) has issued notice of enhancement under section 251 of the Incometax Act on or before the specified date, the disputed tax shall be increased by the amount of tax pertaining to issues for which notice of enhancement has been issued.

Where the dispute in relation to an assessment year relates to reduction of tax credit under section 115JAA or section 115D of the Income-tax Act or any loss or depreciation computed thereunder, the appellant shall have an option either to include the amount of tax related to such tax credit or loss or depreciation in the amount of disputed tax,or to carry forward the reduced tax credit or loss or depreciation,in such manner as may be prescribed

3. Tax payable in search cases

125% of disputed tax. Where such 25 % exceeds interest and penalty then amount of tax including interest and penalty to be paid. No declaration allowed in search cases where the amount of disputed tax exceeds Rs. 5 crore.

4. Relief in special cases

As per original bill the assessee is liable to pay 100 per cent of disputed tax [125 percent where declaration filed after 31.03.2020] or 25 percent [ 30 percent where declaration filed after 31.03.2020] of disputed fee or penalty.

(a) where an appeal or writ petition or special leave petition is filed by the income-tax authority on any issue before the appellate forum, the amount payable shall be one half of the amount (i.e 100 per calculated on such issue, in such manner as may be prescribed.

(b)Wherean appeal is filed before the Commissioner (Appeals) or objections is filed before the Dispute Resolution Panel by the appellant on any issueon which he has already got a decision in his favour from Income Tax Appellate Tribunal (where the decision on such issue is not reversed by the High Court or the Supreme Court) or the High Court (where the decision on such issue is not reversed by the Supreme Court), the amount payable shall be one-half of the amount in the Table above calculated on such issue, in such manner as may be prescribed

(c) Where an appeal is filed by the appellant on any issue before Income Tax Appellate Tribunal on which he has already got a decision in his favour from the High Court (where the decision on such issue is not reversed by the Supreme Court), the amount payable shall be one-half of the amount in the Table above calculated on such issue, in suchmanner as may be prescribed.”

5. Appeal to be withdrawn once declaration accepted

It is now provided that where the declarant has filed any appeal before the appellate forum or any writ petition before the High Court or the Supreme Court against any order in respect of tax arrear, he shall withdraw such appeal or writ petition with the leave of the Court wherever required after issuance of certificate under sub-section (1) of section 5 and furnish proof of such withdrawal alongwith the intimation of payment to the designated authority under subsection (2) of section 5.

Earlier it was required that declarant shall withdraw appeal after filing of declaration under the Bill.

6. Filing of declaration not to affect the declarant Making a declaration

Under this Act shall not amount to conceding the tax position and it shall not be lawful for the income-tax authority or the declarant being a party in appeal or writ petition or special leave petition to contend that the declarant or the income-tax authority, as the case may be, has acquiesced in the decision on the disputed issue by settling the dispute.

7. Refund of taxes paid

Where the declarant had, before filing the declaration, paid any amount under the Income tax Act in respect of his tax arrear which exceeds the amount payable, he shall be entitled to a refund of such excess amount, but shall not be entitled to interest on such excess amount under section 244A of the Income-tax Act