CBDT Releases FAQs on Direct Tax Vivad Se Vishwas Scheme 2024

Circular No. 12 of 2024, dated 15-10-2024

The Finance (No. 2) Act 2024 reintroduced the Direct Tax Vivad Se Vishwas Scheme 2024 to expedite the resolution of income-tax disputes, specifically targeting the large volume of pending appeals. The scheme aims to streamline dispute settlements for appeals pending as of July 22, 2024.

To facilitate the various queries raised by the stakeholders following the enactment of the Scheme, the Central Board of Direct Taxes (CBDT) has issued a Guidance Note in the form of Frequently Asked Questions (FAQs). These FAQs are designed to provide clarity and assist taxpayers in better understanding the scheme’s provisions.

A few key clarifications issued by the CBDT are as follows:

(1) The benefit of the Scheme not available if an appeal is disposed of before filing the declaration

If a decision has been given before the taxpayer files a declaration under the scheme, there is no pending dispute unless either the taxpayer or the Department chooses to appeal again. Therefore, if an appeal is pending as of 22-07-2024 but is no longer pending when the declaration is filed under the scheme, such cases will not be eligible for the scheme.

However, in situations where a taxpayer submits a declaration under section 90 of the Scheme and informs the appellate authority, the authority may consider holding off on disposing of the taxpayer’s appeal. [FAQ 8]

(2) Writ on 148/148A notice

If a writ has been filed against a notice issued under section 148/148A and no assessment order has been passed consequent to the notice, the income has yet to be determined. Therefore, the disputed tax is not ascertainable. Accordingly, the taxpayer would not be eligible to file a declaration under the Scheme.

(3) Assessment order is stayed by HC/SC

It has been clarified that the benefit of the scheme is not available in a case where the enforceability of an assessment order passed by AO has been stayed by the High Court or Supreme Court.

A quantum appeal pending on 22-07-2024 can be settled under the Scheme. Thus, if an assessment order has been stayed, it is not tantamount to an appeal pending as of 22-07-2024.

(4) Miscellaneous Application & Set-aside matters

Miscellaneous Application is not an appeal. Therefore, miscellaneous applications pending as of 22-07-2024 will not be eligible for the benefit of the scheme.

Similarly, a set-aside matter to the AO is not an appeal pending as such. Therefore, set-aside matters to the AO, whether fully set-aside or partially set-aside is not covered under the Scheme.

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