Vivad se Vishwas resolved 294% more cases than similar one in ‘98 - Hindustan Times
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Vivad se Vishwas resolved 294% more cases than similar one in ‘98

ByRajeev Jayaswal, Hindustan Times, New Delhi
Apr 20, 2021 07:57 AM IST

The performance of yet another tax incentive scheme Direct Tax Dispute Resolution Scheme (DTDRS) launched in 2016 was worse in terms of numbers as it could resolve only 8,653 cases involving disputes worth ₹631.07 crore.

Liberal terms and a wider scope helped the latest direct tax amnesty scheme Vivad se Vishwas (VsV) resolve 294% more cases and settled disputes worth over 1 lakh crore compared to a similar scheme launched in 1998 that reconciled about 34,000 cases involving a mere 739 crore, government data showed on Monday.

Finance minister Nirmala Sitharaman announced the direct tax disputes resolution scheme in budget 2020. (ANI)
Finance minister Nirmala Sitharaman announced the direct tax disputes resolution scheme in budget 2020. (ANI)

The Kar Vivad Samadhan Scheme (KVSS) launched on September 1, 1998, and closed on January 31, 1999, resolved 33,918 disputes involving 738.74 crore as against 133,837 cases resolved under VsV, covering a disputed amount of 1,00,437 crore, the data showed.

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The performance of yet another tax incentive scheme Direct Tax Dispute Resolution Scheme (DTDRS) launched in 2016 was worse in terms of numbers as it could resolve only 8,653 cases involving disputes worth 631.07 crore. This scheme was launched on June 1, 2016, for six months, but later extended to January 31, 2017.

A comparative analysis of data showed that the latest scheme, VsV, was more liberal compared to the previous schemes in its terms. While KVSS covered cases pending up to the Supreme Court, DTDRS’s scope was limited to appeals pending at the level of commissioner of income tax. VsV covered all pending appeals as on January 31, 2020, up to the apex court, matters pending before the dispute resolution panel and revision petitions.

Karishma Phatarphekar, partner at consultancy firm Deloitte India, said earlier tax dispute resolution schemes such as Kar Vivad Samadhan 1998 and Direct Tax Dispute Resolution Scheme 2016 were not so successful because VsV was generous compared to them.

“Evidently, the government has put all the learnings from its previous experiences of the schemes and tried to make VsV more attractive for the taxpayers,” she said, adding that the intent of VsV was to resolve disputes, while earlier schemes brought about much litigation.

She said the rest of the pending cases could be resolved by formulating a task force that would evaluate specific issues and decide to litigate only those that are fundamentally strong on merits. According to official data, there were over 510,000 tax disputes pending as on January 31, 2020, involving more than 19.55 lakh crore.

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