Re: Favourable Judgment ?
Hello Sir
Assessee’s appeal for AY 2009-2010 in ITAT was partly allowed, bogus purchase addition is reduce from 12.5% to 5%
Assessee did not file appeal against the ITAT order.
Department has filed appeal in High court against the order of ITAT.
Assessee has two more appeal pending before CIT (A) on similar grounds and fact.
Now will assessee get benefit of 50% on having favorable judgment from higher authority in VsV for this two pending appeal before CIT (A) which are on same ground and facts?
Please refer Section 3 proviso and Circular No dt Q. No 39 . Ans : In this case on the issue where the taxpayer has got the relief from ITAT in an earlier year ( not reversed by HC or SC ) the disputed tax shall be computed at half of normal rate of 100% , …… , as the case may be .
If the assessee desires to settle the issue in respect of department appeal pending before High Court , the assessee is liable to pay only 50% of tax in dispute , as regards the appeal pending before the CIT (A) , the assessee is not eligible to get the concessional rate of 50 % of tax in dispute .
“As regards the appeal pending before the CIT (A) , the assessee is not eligible to get the concessional rate of 50 % of tax in dispute”
which in this case if AY 2009-10 and AY 2011-12 which are pending before CIT(A) , where the AO has added 12.5% of purchases on presumption basis.
Even though there is order by ITAT for AY 2010-11 in the assessees case which are on same ground and facts of other two years, whereby the addition is reduced from 12.5% to 5%, benefit of concessional rate of 50% tax is not eligible?