Wrong calculation in Assessment order and opted vivad se viswas scheme 2024

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An assessee paid a tax demand under the Vivad se Vishwas scheme 2024 after appealing the original assessment order. The question is whether the Principal Commissioner of Income Tax (PCIT) can increase the demand based on a calculation error in the initial order. Generally, once a dispute is settled under Vivad se Vishwas, the PCIT cannot enhance the demand on previously settled grounds. However, if the PCIT identifies a new, unrelated issue, they might be able to act under Section 263.

Chandra Kala

Chandra Kala (Querist)

18 April 2025
1. Demand raised by the Assessing Officer was appealed.
2. Subsequently, assessee paid the said demand amount as per Vivad se vishwas scheme 2024 by withdrawing appeal.
3. In such a case, whether PCIT can enhance the demand of tax with plea that there is a wrong calculation in Assessment order passed by Assessing Officer which was appealed and withdrawn and paid the tax in the scheme Vivd se vishwas scheme?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

18 April 2025 The PCIT cannot enhance the demand on the grounds of a wrong calculation in the original assessment order if the assessee has already settled the dispute under the Vivad se Vishwas Scheme. The scheme provides complete immunity from further litigation or demand enhancement on the same issue.
If the PCIT identifies a new issue (not part of the original appeal and settlement), they may invoke Section 263, but not for matters already settled under Vivad se Vishwas.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

28 September 2025 Good luck.....

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