Re: Bilateral Appeal on Same Issue
Facts:
1.An addition is done in case of assessee by AO, let’s say on account of hawala transaction, of Rs. 1 Crore.
2. The assessee files an appeal with the CIT(A), who has given a partial relief by reducing the addition to Rs. 20 Lakhs.
3. Now, both the assessee as well as the department files an appeal on the same issue with the ITAT.
Query:
How does the assessee settle the dispute?
A. Does he have to pay 100% tax on addition confirmed by CIT(A) of Rs. 20 Lakhs (as technically it has substituted the order of AO) or
B. Pay 100% tax on Rs. 20 Lakhs and 50% tax on Rs. 80 Lakhs or
Pay 50% on entire Rs. 1 Crore or
C. Pay 100% tax on entire Rs. 1 Crore of addition.
Both the appeals cover same issue. And hence, ideally, would settling any one of the appeals not be sufficient to bring the issue to closure?
D. Would it not be 100% of the amount of tax payable on Rs. 20 Lakhs, if the time limit for filing of the appeal has not expired as on 31st January, 2020?
E. If the assessee has carried forward losses would the answer be any different?
From what we understand, you have a deemed appeal pending on the specified date, thus you are eligible under VSVA. Please refer Ans to Q.No 1 Clarification issued by Board F.NO IT (A) /2020 -TPL Circular No 7 /2020 dt 4 -03 -2020
You will have to settle your appeal as per Option B provided by you. No difference if the assessee has carried forward losses
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