Central Board of Direct Taxes (CBDT) issued Notification No. 8/2025-Income Tax on 20th January 2025 addressing a concern regarding the eligibility criteria for the Vivad se Vishwas Scheme. Initially, the scheme allowed for filing declarations where an appeal was pending as of 22nd July 2024. However, cases where an appeal was filed after 22nd July but within the allowed time frame were not eligible, creating a discrepancy. This issue led to a writ petition before the Delhi High Court, which directed the CBDT to reconsider this apparent anomaly.
Recognizing this issue, the CBDT has now issued a notification to remove the discrimination. The updated provision ensures that appeals filed after 22nd July 2024, but within the prescribed filing period, will be considered as pending as of the specified date. These cases will now be eligible for the Vivad Se Vishwas Scheme, aligning with the spirit of the original legislation. However, it is important to note that appeals must be filed within the allowable time for eligibility under the scheme. Cases where appeals were not filed timely after 22nd July will not be eligible for the scheme.
This change aims to resolve the confusion caused by the initial implementation and ensure a more equitable application of the scheme. The CBDT’s decision reflects its recognition of the challenge in the earlier rules, providing a solution that treats all taxpayers fairly, regardless of when their appeals were filed relative to the cut-off date. The notification also clarifies the process for calculating disputed taxes for eligible cases under the scheme.
The government’s action highlights its willingness to address concerns that arise during the implementation of tax policies and to ensure a fair and transparent process for taxpayers seeking resolution under the Vivad Se Vishwas Scheme.
MINISTRY OF FINANCE
(Department Of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
ORDER
New Delhi, the 20th January, 2025
S.O. 348(E).—WHEREAS, the Direct Tax Vivad Se Vishwas Scheme, 2024 was introduced vide the Finance (No.2) Act, 2024 (15 of 2024) and came into force with effect from the 1. day of October, 2024;
WHEREAS, while implementing the said Scheme difficulties have arisen in situations where,—
(a) an order in case of a person had been passed on or before the specified date i.e. the 22nd day of July, 2024;
(b) the time for filing an appeal in respect of such order was available as on the said date;
(c) appeal in respect of such order was filed after the said date within the stipulated time as applicable for filing of such appeal; and
(d) aforesaid appeal is filed without any application for condonation of delay;
WHEREAS, section 98 of the said Finance (No.2) Act, 2024 provides that if any difficulty arises in giving effect to the provisions of the Scheme, the Central Government may, by Order, not inconsistent with the provisions of the Scheme, remove the difficulty;
NOW THEREFORE, in exercise of the powers conferred by sub-section (1) of section 98 of the Finance (No.2) Act, 2024, the Central Government hereby makes the following Order to remove the difficulty, namely: —
(i) in the case of such a person, aforesaid appeal shall be considered as pending as on the 22nd day of July, 2024 for the purposes of the said Scheme;
(ii) such a person shall be considered m an appellant for the purposes of the said Scheme;
(iii) in such a case, disputed tax shall be calculated on the basis of such appeal; and
(iv) the provisions of the said Scheme and the rules framed thereunder shall apply accordingly in such a case.
[No. 8/2025/ F. No. 370153/01/2025-TPL]
PRADEEP SHARMA, Dy. Secy., Tax Policy & Legislative Division
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