Re: BENEFIT CAN BE TAKEN FO PENALTY ORDER ??

MY QUERY IS AS UNDER

MY CLIENTS APPEAL FOR A.Y 13-14 IS PENDING BEFORE TRIBUNAL AND HE DONT WANT TO TAKE BENEFITS UNDER VSV AND WANT TO CONTINUE THE APPEAL, BUT PENALTY ORDER FOR A.Y 13-14 WAS PASSED BY ITO AND SAME IS PENDING BEFORE CIT (A) AND HE WANT TO TAKE BENEFIT IN VSV FOR ONLY PENALTY ORDER CAN HE TAKE BENEFIT, PLEASE GUIDE AND IF ANS IN FAQ PLEASE SHARE, YOUR REPLY IS HIGHLY APPRECIATE, WITH BIG THANKS

WITH BEST REGARDS
PIYUSH POPAT
9428756101

As per Question No. 8 of CBDT Circular No. 9 of 2020 dated April 22, 2020, it would not be possible for the appellant to apply for settlement of penalty appeal only when the appeal on disputed tax related to such penalty is still pending.? 

Q .8 reads as under  imagine a case where an appellant desires to settle concealment penalty pending before CIT (A), while continuing to litigate quantum  appeal  that  has travelled to higher appellate  forum. Considering these are two independent and different appeals, whether appellant can settle one  to exclusion  of others?  If    yes, whether settlement of penalty  appeal will have any  impact  on  quantum  appeal? 

 

Ans : If both quantum appeal covering disputed tax and appeal against penalty levied on such disputed tax for an assessment year are pending, the declarant is required to file a declaration form covering both disputed tax appeal and penalty appeal. However, he would be required to pay relevant percentage of disputed tax only. Further, it would not be possible for the appellant to apply for settlement of penalty appeal only when  the appeal on disputed tax related to such penalty is still pending. 

 

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