Re: appeal agaist order u/s 143[3] as well order u/s 153A

The assesse has filed appeal agaist order u/s 143[3]before cit appeal say for AY 2015-16 which is pending.The demand in dispute is 10 cr. Pending the first appeal there was search at business premises.The assesse was again assessed for search period u/s 153A including for the year for which appeal is pending ie AY 2015-16.Since there was no incriminating material for the relevant year same income assessed earlier was assessed again and demand of 10cr [as increased by interest]was raised.Assesse again filed appeal before another cit appeal as after search case was centralised. The ISSUE FOR CONSIDERATION IS ELIGIBLITY TO AVAIL THE BENEFIT OF SCHEME.ORIGINAL APPEAL FILED AND PENDING BEFORE REGULAR CIT APPEAL CAN BE SETTLED UNDER THIS SCHEME BUT SAME ISSUE IN ANOTHER APPEAL PENDING BEFORE CIT APPEAL CENTRAL IS NOT ELIGIBLE AS THE TAX EFFECT IS MORE THAN 5 CR.MOREOVER IF ASSESSE AVAILS OF SCHEME TO SETTLE FIRST APPEAL AGAIST ORDER U/S 143[3] WILL INCOME ASSESSED U/S 153A BE RECTIFIED OR SECOND APPEAL WILL BECOME INFRUCTOUS AS THERE IS NO OTHER ADDITION PLEASE ADVISE W

According to us , the matter cannot be settled under VSVA by virtue of section 9 (a) (i) of the VSVA.  Which reads as under “  The provisions of this Act shall not apply— (a) in respect of tax arrear,— 

(i) relating to an assessment year in respect of which an assessment has 
been made under sub-section (3) of section 143 or section 144 or section 153A or section 153C of the Income-tax Act on the basis of search initiated under section 132 or section 132A of the Income-tax Act, if the amount of disputed tax exceeds five crore rupees; 

  The second appeal would be against an order under section 143(3) read with section 153A of the Act, on the basis of search initiated. Therefore, with the tax effect being more than Rs. 5 Cr, the assesee may  not be eligible under VSVA. 

Today The Income Tax Appellate Tribunal had arranged the Video conferencing on the Topic : The Direct Tax Vivad Se Viswas Act .2020. One of the representative  from the Bar Associations has raised the specific issue on the above issue raised by you , and brought to the notice of the Notice of Shri Pramod Chandra Mody Honourable Chairman CBDT .   You may also write to him about your query . He has agreed to answer all the issues raised by the professionals .    

 

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