Circular under section 10 of the direct tax vivad se vishwas act 2020
Circular No. 3/2021 was issued by the Central Board of Direct Taxes on 4 March 2021. Its subject is Circular under section 10 of the direct tax vivad se vishwas act 2020.
Clarifies that once the designated authority has passed orders under section 5(1) and section 5(2) of the Direct Tax Vivad se Vishwas Act, 2020, the Assessing Officer shall pass a consequential order under the Income-tax Act, 1961. The Board issues this under section 10 of that Act, resolving the field's doubt about whether the Assessing Officer had any power to give effect to a designated authority's order.
Field authorities represented that the Income-tax Act contains no provision letting the Assessing Officer give effect to the designated authority's orders under section 5(1) and section 5(2), even though those orders have consequential effect under the Act.
F. No. IT(A)1112020-T1'L
Government of India
Ministry of Finance
Department of Revenue
Ccntr-al Board of Direct Taxes
••••
Circular No. 03 of 2021
New Delhi, 4'" March, 2021
SUb.: Ci~cular under section 10 of the lJircct Tax Vivad sc Vishwas Act, 2020 _ reg.
The Direct Tax Vivad sc Vishwas Act, 2020 (" Vivad se Vi,\'!nva.f') was enacted on 171h March,
2020 with the objective of infer alia reducing pending income lax disputes, generating timely revenue for
the Government and benefitting taxpayers by providing them peace of mind, certainty and savings on
account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation
process to resolve the disputes.
2. Sub-section (I) of section 5 of Vivad l'e VishlV(L~ provides that the designated authority
(hereinafter rcfcrrcd to as "DA") shall pass a dctermination order within fifteen days from the date of
rcceipt oflhe declaration. The DA is also required to pass another order under sub-section (2) of section 5
of Vivad ~e ViS/lim.'! for full and final settlement of the tax arrear.
3. Representations have been received from the ficld authorities that under the Income-tax Act, 1961
(hcreinafter referred to as "the Act") there is no provision available to the Assessing Officer to give effect
to the order passed by the DA under sub-section (I) of section 5 and under sub-section (2) of section 5 of
the Vimd.\'e Vishwas in the ease of a declarant. Since orders passed by the DA have a consequential effect
under the Act, it has been requested that suitable clarifications may be issued to enable the AO to pass
consequential orders under the Act.
4. In view of the foregoing, and in exercise of the powers conferred on the Board under section 10
of Vivad :ie Vishwas. it is hereby clarified that where the DA has passed orders under sub-sections (I) and
(2) of section 5 of Vivad se Vi,s!lIvas, the Assessing Officer shall pass consequential order under the Act.
Copy (0:
1. PS to FM/ OSD to FMI PS to MoS(F)/ as!) to MoS(F)
2. PPS to Secrctary (Revenue)
3. Chainnan. CBDT & All Members, CBDT
4. All Pro DGslTI Pr. CslT
~~~\oC"
(She fall Singh)
Under Secretary, TPL-IV
S. 1\1\ Joinl Secretaries! CslTI Directors/ Deputy Secretaries! Under Secretaries ofCSDT
6. The C&AG of India
7. The JS & Legal Adviser, Ministry of Law & Justice, New Delhi
8. CIT (M&TP), Official Spokesperson ofCADT
9. 0 10 Pro DGIT (Systems) for uploading on official website
10. JCIT (Database Cell) for uploading on www.irsofficersonline.gov.in
After Form 5 is issued under the scheme, when the demand on the portal for the settled year has not been reduced and an order giving effect is needed from the Assessing Officer.
It mentions. Circular No. 03/2021
Source: the Income Tax Department’s own published text — its page for this instrument.