For those who do not make it to VCES, 2013 the doors of Settlement Commission are always open
WE received an interesting mail on the VCES from a netizen -
"Section 111 of the FA, 2013 says that where the CCE has reasons to believe that the declaration made by the declarant under the Scheme was "substantially" false, he may in writing serve notice on the declarant in respect of such declaration requiring him to show-cause why he should not pay the tax dues not paid or short-paid. What is meant by "substantially false" would be an issue that would need the Courts (or for that matter Settlement Commission) to answer in the days to come. Moving further, sub-section (2) states that such action cannot be taken after the expiry of one year from the date of declaration . Sub-section (3) specifies that the SCN issued u/s.s (1) shall be deemed to have been issued under section 73/73A.
A few questions arise here -
+ since the VCES scheme allows a declarant to disclose his tax dues for the period beginning 1 st October, 2007 to 31st December, 2012 and assuming that the declarant has filed the declaration on 31 st December, 2013 will the SCN issued (for making a substantially false declaration) by December, 2014 cover the entire period of the declaration? This cannot possibly be so for the reason that the notice deemed to have been issued u/s 73 can cover the period of five years and not more. So also, since the facts have already been revealed by the declarant while filing the declaration, can suppression be alleged?
Be that as it may, once the SCN is issued cannot the declarant knock the doors of the Settlement Commission for settlement of his dues?
In the years to come, I am certain that the "tax disputes" under VCES would continue to simmer in the Tribunal, the Settlement Commission and the Courts long after the VCES scheme has ended its life span."
These doubts may seem irrelevant to some experts, but the fact is that the assessees are afraid of the Government for they believe, you are damned if you do and you are damned if you don't. When the Government says, ‘it is deemed', the assessee understands it as, ‘I am doomed'. DDT has been repeatedly emphasizing the need for a comprehensive clarification on VCES and the sooner the Board comes out with it, the better.