Re: If disputed demand is reduced u/s 154 after filing of appeal, whether reduced tax will be allowed on vsvs

In a case disputed tax in appeal, was reduced by an order u/s 154 by A.O.

Reduced tax was offered in form 1 & 2. But form 3 is issued ignoring 154 on original disputed tax.

So our query is, whether if disputed demand is reduced u/s 154 after filing of appeal, whether reduced tax will be allowed on vsvs?

Yes the assessee has to pay the tax in disputed demand after considering the rectification passed by the Assessing Officer .  The  assessee may file rectification application before the designated Authority or may also file revised application  under VSVS . Refer Circular No 9 dt 22 -4 -2020,  Q. No 46 and Ans . The Board  has Clarified that the Designated Authority shall be able to amend his order under section 5 to rectify any apparent errors .    Refer Circular No 9 /2020 dt 22 -4 -2020 ,  Q. No 50 and Ans :

 

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