The Central Board of Direct Taxes ( CBDT ) has clarified that any amount paid pursuance of a declaration made under Vivad se Vishwas Scheme shall not be refundable under any circumstances.
The CBDT clarified issues related to the procedure that the DA shall determine the amount payable by the declarant within fifteen days from the date of receipt of the declaration and grant a certificate to the declarant containing particulars of the tax-arrear and the amount payable after such determination.
The declarant shall pay the amount so determined within fifteen days of the date of receipt of the certificate and intimate the details of such payment to the DA in the prescribed form. Thereafter, the DA shall pass an order stating that the declarant has paid the amount. It may be clarified that 15 days is an outer limit.
The DAs shall be instructed to grant a certificate at an early date enabling the appellant to pay the amount on or before 31 st March 2020 so that he can take benefit of reduced payment to settle the dispute. and thereupon the DA shall pass an order stating that the declarant has paid the amount.
The CBDT also said that under the amended procedure no appeal is required to be withdrawn before the grant of certificate by DA. The appellant is required to withdraw appeal or writ or special leave petition pending before the appellant forum and submit proof of withdrawal with an intimation of payment to the DA as per the same clause.
As per clause 6, subject to the provisions of clause 5, the DA shall not institute any proceeding in respect of an offense or impose or levy any penalty or charge any interest under the Income-tax Act in respect of tax arrears. This shall be reiterated in the order under section 5(2) passed by DA and DA can amend his order to rectify any patent error.
As per clause 4(7), no appellate forum or arbitrator, conciliator or mediator shall proceed to decide any issue relating to the tax arrears mentioned in the declaration in respect of which order is passed by the DA or the payment of sum determined by the DA.
The CBDT further said that once the declaration is filed under Vivad se Vishwas, and for financial difficulties, payment is not made accordingly, the declaration be null and void.
The CBDT also clarified that the demand in case of an assessee has been reduced partly or fully by giving appeal effect to the order of appellate forum, the amount payable under Vivad se Vishwas be adjusted after getting the proof of payment of the amount payable, the AO shall pass order under the relevant provisions to create demand in case of assessee against which the amount payable shall be adjusted.
