In a bid to address challenges arising from the implementation of the Direct Tax Vivad Se Vishwas Scheme, 2024, the Central Board of Direct Taxes (CBDT) has issued a clarification through a gazette notification dated January 20, 2025.
The scheme, enacted via the Finance (No. 2) Act, 2024, and effective from October 1, 2024, aims to resolve direct tax disputes amicably. However, specific scenarios have posed complications, including cases where:
- An order was passed before the specified date of July 22, 2024.
- The time to file an appeal against such an order was still valid on the specified date.
- Appeals were filed after July 22, 2024, within the allowable timeframe.
- The appeal was submitted without a delay condonation application.
To eliminate ambiguity, the Central Government has now mandated that such appeals will be deemed pending as of July 22, 2024. These appellants will be considered eligible under the scheme, and disputed tax will be calculated based on the filed appeals. The relevant rules of the scheme will apply to these cases accordingly.
The order, issued under Section 98 of the Finance (No. 2) Act, 2024, underscores the government's commitment to resolving tax disputes efficiently while ensuring clarity in procedural guidelines.
Taxpayers are advised to review their cases and seek professional guidance to benefit from the scheme before its stipulated deadlines.
Text of the Official Notification is as follows
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 1st 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 as 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
Official copy of the notification has also been attached
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