Vivad Se Vishwas II (VSV II) Scheme, 2024, aims to reduce pending tax appeals and provide taxpayers a chance to resolve disputes amicably. However, a key issue arose as the scheme only covers cases where appeals or revisions were pending as of July 23, 2023. This has created uncertainty for taxpayers whose normal time to file appeals had not expired by this date but refrained from filing, assuming provisions similar to the earlier scheme. The absence of such provisions has led to taxpayer concerns and legal challenges, including the case of Naveen Kumar Agarwal vs CBDT in the Delhi High Court, which directed the CBDT to address the matter. Representations have also been made by various stakeholders, emphasizing that a significant number of cases remain affected. A request has been made to the CBDT to consider this issue and provide necessary relaxations or clarifications to allow taxpayers in such situations to benefit from the scheme. This move is seen as crucial for reducing litigation and addressing taxpayer anxieties effectively.
All India Federation of Tax Practitioners
(An Association of Advocates, Chartered Accountants & Tax Practitioners of India)
Regd. Office :
215, Rewa Chambers,
31, New Marine Lines,
Mumbai 400 020.
Tel.: 2200 6342 / 43 / 4970 6343
E-mail: [email protected]
Website: www.aiftponline.org
Date: 19.12.2024
To
The Chairman
Central Board of Direct Taxes,
New Delhi
Email [email protected]
Sir,
Re: Relaxation in the provisions for availing VSV Scheme II.
The main aim behind introduction of the VSV II, 2024 scheme was to reduce pendency of appeals and give window to the tax payers to buy peace even when they have filed appeals and are contesting the assessment order. The CBDT is aware that due to long pending appeals, the assesses are burdened with extra anxiety. In fact, the pendency went down sizably in VSV, 2020 (first scheme).
Sir, there is an embargo in the scheme that appeal/ reference /revision should be pending as on 23.7.2023. In this cycle, there are cases where orders have been passed by different authorities some time in 2023 and normal time for filing of the appeal did not expire. The assessee’s were contemplating filing the appeal. However, after announcement of the scheme they did not prefer appeal since in the earlier scheme there was provision that if the time for filing of appeal has not expired the assessee can avail the scheme. However, on announcement of the scheme the aid provisions as existed earlier were missing.
We find that some assessee also moved to the Hon’ble High Court and the Hon’ble Delhi High Court in the case of Naveen Kumar Agarwal vs CBDT TS /913/HC 2024 has asked the CBDT to consider and clarify the said issue.
We have also received representation from our large number of members in this respect. It is submitted that a number of cases are involved in the cycle. It is therefore requested to kindly consider the issue sympathetically and issue necessary instructions to allow assessees to avail the scheme in cases where the normal time of filing of appeal did not expire on 23.7.2023.
For this act of kindness, we shall ever pray.
For All India Federation of Tax Practitioners
Narayan Prasad Jain, President
M 98309 51252
Email [email protected]
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