CBDT Clarifies Pending Appeals Under Direct Tax Vivad Se Vishwas Scheme, 2024

By: Admin
January 21, 2025
Categories: CBDT Notification | Notification and Circular
Read Time: 4 Min

The Central Board of Direct Taxes (CBDT) recently clarified how pending appeals under the Direct Tax Vivad Se Vishwas Scheme, 2024, will be handled. In Order No. 8/2025, issued on January 20, 2025, the CBDT addressed challenges related to appeals filed after July 22, 2024, but within the permissible timeframe, where delay condonation applications were not submitted.

Key Highlights

Pending Appeals Now Eligible

The CBDT now treats appeals filed after July 22, 2024, but within the allowable timeframe, as pending as of that date for inclusion in the scheme.

Taxpayers Gain Recognition as Appellants

Taxpayers who filed these appeals are recognized as appellants, ensuring their eligibility for the scheme’s benefits.

Disputed Tax Computation Explained

The government will calculate disputed taxes for these appeals based on the scheme’s provisions. This clarification ensures a consistent approach to handling such cases.

Legal Basis of the Clarification

Section 98 of the Finance (No. 2) Act, 2024, authorized the government to address implementation challenges. Using this authority, the CBDT issued the clarification to resolve taxpayer concerns.

Background

The Finance (No. 2) Act, 2024, introduced the Direct Tax Vivad Se Vishwas Scheme to promote amicable resolution of direct tax disputes. Effective from October 1, 2024, the scheme has provided taxpayers with an efficient mechanism to settle pending cases.

Despite this, some challenges emerged during implementation, particularly in cases where:

  • Authorities passed orders on or before the specified date of July 22, 2024.
  • Taxpayers filed appeals after July 22, 2024, but within the allowable timeframe, without applying for condonation of delay.

Government Clarification

To resolve these issues, the CBDT clarified the following:

  • Appeals filed within the permissible timeframe but after the specified date qualify as pending as of July 22, 2024.
  • Taxpayers involved in these appeals qualify as appellants under the scheme.
  • Relevant provisions of the scheme apply, including the calculation of disputed taxes based on these appeals.

This timely clarification reflects the government’s commitment to improving the scheme’s implementation while addressing taxpayer concerns.

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