Recently, due date for applying under Vivad se Vishwas scheme was extended to 31.03.2021.
Many people had filed application under Vivad se vishwas act and people have even started to get orders under Vivad se vishwas Act.
However, many people were confused as to whether assessing officer has power to issue consequential orders under Income tax act as Vivad se vishwas is a separate Act and hence many representations were made before Income tax department.
In response to the above notice CBDT has issued circular no. 3/2021 dt. 04.03.2021 wherein it has answered the above question which is as under:
CBDT has mentioned that in the said act i.e. Vivad se vishwas act it had powers under section 10 and accordingly it is being clarified that where designated authority has passed order under sub section 1 and 2 of section 5 of Vivad se vishwas act, the Assessing officer shall pass consequential order.
Thus, it has been clarified that AO has to pass consequential order for closure of the ongoing litigation/ proceedings once final order is passed under Vivad se vishwas Act for the same.
To download the circular CLICK HERE.