Re: Demonetisation woes: honest pension of army officer goes waste

We are fourth generation Army officers family. My grandfather took out an amount of Rs.Fifteen lakh and sixty thousand only from his SBI pension account between Jan 2016 and Oct 2016 for the repair and renovation of his house.
The repair work could not be done due to heavy rainfall in Dehradun and Demonetisation.
Due to demonetisation he redeposited an amount of Rs. Ten lakh and thirty thousand of the withdrawn amount.
Demand of Rs. Eight lakh was made by AO on 24 Dec 2019.
My grandfather passed away on 26 Dec 2019.
As I am legal representative but not legal heir I could not appeal to CIT A.
Our appeal to PCIT u/ s 264 was rejected . Our explanation was termed as ” incredulous”.
My question is can I appeal to ITAT.
As going to High court is very costly for salaried class.
If nothing good will come out of fighting the case.
Then can we go for V se V now to save 2 lakhs atleast of penalty and interest.
Thank you
Hoping for advice

Our sympathy is with you , however , the assessee  neither   file an appeal before the Income Tax Appellate Tribunal nor  take advantages of the scheme .  Against the rejection of rejection of order under Section 264 , only remedy is file Writ before the High Court. For Availing  the benefit of the Vivad Se Vishwas  , the valid appeal must be pending as on 31 -1 -2020.  If the valid application was pending before the Commissioner as on 31 -1 2020 , then the assessee can avail the benefit of the Scheme , even after dismissal of the Revision application . Refer Circular No 11/ 2020 dt 4 -12 -2020 , Q.No .56 and Ans.

Our advice will be , the  assessee can approach the Commissioner under section. 273A  of the Act , for waiver of interests and  penalty . It seems prima facie   the assessee has a reasonable case on merit . in case the  Revision application was rejected on account of  delay in filing the application . The assessee can still  file an appeal before the CIT (A) , with proper application for condonation of delay with supporting affidavit , the CIT ( A) can condone the delay . In case the delay is not condoned , the assessee can approach the Appellate Tribunal . In case the application under section 264 was decided on merit the appeal is not maintainable  before the CIT (A)

 

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