Re: Assessment based on FAQ-70
The assessment was done u/s 143(3) and addition was made. Tax and up to date interest was mentioned in the order issued by ITO. No search was done on the assessee. An appeal is pending. We filed for VSV and have received Form-3 mentioning the total amount of Tax as well as interest amount up to the date of order issued by ITO. A footnote on the Form-3 says that this has been treated as search case based on the information during search of some other assessee and Q no. 70 in FAQs applies. I feel that the basic idea of VSV was that only the disputed tax has to be paid. Kindly guide.
This is the view of the Department after the interpretation given by the CBDT in respect of search related matters . The view of the Department is not based on any legal precedent , however the assesseee may have to file Writ before the High Court urging that the interpretation given by the CBDT is not correct.
Leave a Reply