Re: Determination of Disputed Tax under the Scheme

Out of the Total Additions ITAT upholding the CIT-(A) order gave part relief and upheld the balance addition (same ground of appeal). The Department filed Appeal to High Court for relief but Assessee after filing cross objections before ITAT took no action for filing to High Court for the demand upheld. Now the Question arises whether under VSV Scheme the Entire addition is disputed or only the amount for which Department has appealed is to be considered as disputed and balance demand has to be paid by Assessee along with Interest?

Please Refer Circular No 21/2020 dt 4 -12 -2020  Q. No. 60 and Answer given by the CBDT  , as per the CBDT  cross objection pending as on 31 January 2020 will also be covered. It seems the appeal and cross objection was disposed before 31 st January 2020 and the Department appeal is pending before the High Court . It is only the tax in dispute in the  department appeal  can be settled .   Please also refer Circular No 9 of 2020 dt 22 -4-2020  Q. No 1 and answer by CBDT  wherein the order is passed and the time limit for filing an Appeal before High Court has not expired on the specified date are also covered . On the facts if the time limit  has not expired  as on 31-1 -2020 , the assessee can file a declaration even in respect of  cross objection filed by the asssessee.      

 

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