Re: Appeal -Heard on 31-01 -2020

a) Whether taxpayer is eligible to avail VSV where matter was fully heard by appellate forum as on 31 January 2020, but appellate order passed post 31 January 2020 but before filing the declaration? Whether FAQ 50 (for giving effect to appellate order passed for comuting disputed tax liability) and FAQ 25 (for giving effect to rectification order passed for comuting disputed tax liability), will be applicable in this scenario as well?
b) If answer to the above is yes, whether disputed tax is to be computed after considering relief granted in appellate order?

There is ambiguity in the FAQ’s in respect of this aspect.  Intention of the legislature looks to be that if hearing is concluded before or after 31 January 2020 and the order is received after 31 January 2020 but before filing the declaration, then

 

• Since appeal is pending as on 31 January 2020; 
• Therefore, disputed tax is to be computed after giving effect to the appellate order passed post 31 Janaury 2020;

 

PCIT should inform all its officers to pass the OGE on immediate basis so that correct disputed tax can be computed by the DA.

 

If the issue is decided by the appellate forum in favour of the appellant for any other year and not reversed by Higher forum – then can settle that issue at 50%.  

 

Therefore we can expect some clarification on this issue from CBDT.  

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