ARTICLE
27 January 2025

Eligibility Of Appeals Filed Within Due Date Post VSV 2024

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Dewan P.N. Chopra & Co.

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Dewan P. N. Chopra & Co. is a prominent Chartered Accountants firm in India, offering a wide range of services across six key areas: Direct Taxation, Goods and Service Tax, Regulatory, Transaction Advisory, Risk Advisory, and Audit & Assurance. With a team of experts from diverse disciplines—including Chartered Accountants, MBAs, Company Secretaries, Lawyers, and Financial Management specialists—the firm provides comprehensive solutions in areas such as Valuations, Mergers & Acquisitions, Corporate Finance, and Business Setup.

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Clarification with regard to eligibility of appeals filed within due date as per Income Tax Act, 1961 but after date specified under VSV Scheme, 2024...
India Tax

Clarification with regard to eligibility of appeals filed within due date as per Income Tax Act, 1961 but after date specified under VSV Scheme, 2024

Under the Scheme, introduced through Finance (No. 2) Act, 2024 ('the Act'), difficulties with regard to following situation were brought to the notice of the tax department:

  1. An order against the assessee was passed on or before the specified date i.e., July 22, 2024;
  2. Time for filing appeal against such order has not lapsed as on the specified date;
  3. An appeal against such order is preferred after the specified date but with the time limit prescribed under provisions of the Income Tax Act, 1961 ('the IT Act, 1961'); and
  4. No condonation request has been filed along with such appeal by the assessee.

Due to the ambiguity regarding eligibility of above situation (i.e., appeal not pending on specified date) under the Scheme, the assessee was facing difficulty in filing declaration against such appeal preferred with the appellate authority within due time specified under the IT Act, 1961 but after the specified date i.e., July 22, 2024.

Addressing the above difficulty, CBDT, in exercise of the powers conferred by section 98(1) of the Act, through order number 8/2025 dated 20th January, 2025, clarifies that:

  1. such appeal as preferred by the assessee shall be considered as pending as on the specified date i.e., July 22, 2024;
  2. such assessee shall be considered as an Appellant under the Scheme;
  3. disputed tax in such case shall be computed on basis of such appeal; and
  4. the provisions of the Scheme and Rules specified thereunder shall continue to apply in such case

Accordingly, pursuant to such clarification, an appeal preferred by an assessee against an impugned order with the time limit prescribed under the IT Act, 1961, but after the date specified under the Scheme i.e., July 22, 2024, shall be eligible for filing declaration under the Scheme.

For details, please refer the following:

Finance (No. 2) Act, 2024 dated 16.08.2024

https://egazette.gov.in/WriteReadData/2024/256436.pdf

CBDT Notification No. 103/2024 dated 19.09.2024

https://incometaxindia.gov.in/communications/notification/notification-103-2024.pdf

CBDT Notification No. 104/2024 dated 20.09.2024

https://incometaxindia.gov.in/communications/notification/notification-104-2024.pdf

CBDT DIT (Systems), Bengaluru Notification No. 4/2024 dated 30.09.2024

https://incometaxindia.gov.in/communications/notification/notification-no-4-2024-25.pdf

CBDT Circular No. 12/2024 dated 15.10.2024

https://www.incometax.gov.in/iec/foportal/sites/default/files/2024-10/circular-12-2024.pdf

CBDT Circular No. 20/2024 dated 30.12.2024

https://incometaxindia.gov.in/communications/circular/circular-no-20-2024.pdf

CBDT Order No. 8/2025 dated 20.01.2025

https://egazette.gov.in/(S(2vx2tmgj4zzmsudigukv5qmb))/ViewPDF.aspx

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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