Re: Amount of Tax payable under VsV
The CIT(A) accepted the contention of the taxpayer and deleted the disallowance made by the Assessing Officer.
The Revenue preferred an appeal before the Income Tax Appellate Tribunal. If we opt for the VsV scheme, since the disallowances have been deleted by the CIT(A), would the taxpayer still be liable to pay taxes as per the order of the Assessing Officer or the decision of the CIT(A) form the base of payment of tax.
As first proviso to section 3 of VSVA, on departmental appeal, the declarant-assessee has to only pay half of the amount under VSVA i.e. 50 percent of the disputed tax amount and not as per the assessment order.
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