Re: Force of FAQ
1.There is no direct search in case of our client
2.However the reassessment has arisen from the Search Action in some other case as specified in the order u/s 143[3] RW 147 of our client case
3.The DTVSVS Application was filed in Mar 2020
4.The Form 3 dated 11.3.2021 issued by Principal CIT states amount payable is calculated at 125% as against 100% of disputed tax as computed by the assessee – as per FAQ 70, of circular F.No.IT(A)/1/2020-TPL , dated 04.12.2020 as the case of taxpayers w as based on search executed in some other tax payer’s case.
According to us the interpretation of the CBDT is not in accordance with provision of the VSV Act. A Writ petition is filed before the Bombay High Court in Sushil Bhatia HUF v .PCIT ( WPNO. (L) (No. 4666of 2021 dt 23 -2 -2021 .Delhi High Court order in Ashsih Saraf v .PCIT dt 15 -2 -2021 was relied . The matter is adjourned to 4 . 4 -2021 . We hope the Court may decide on 4 -4. -2021 . Similar petitions are filed before the Delhi High Court In Prime India Pvt Ltd v .PCIT and ors WP NO. 2579/ 2021 the interim order was passed on 25 -2 -2021 , the matters are kept for hearing on 4 -5 -2021 .
The assessee may file writ before the High Court it may be clubbed along with other group matters which are likely to be heard in the month of April 2021 .
Any update in this matter. SInce the Designated CIT is still of the opinion that FAQ 70 still stands even after the Curcular dated 23rd March. Ours is a penny stcok case.