Re: Is penalty initiated u/s 271(1)(c) waived once assessee opted VSV for disputed tax?
Assessee is in appeal for disputed tax, meanwhile AO has also initiated penalty u/s 271(1(c). Will the penalty waived off once VSV is opted against disputed tax on Assessment order
As per FAQ No. 8 of CBDT Circular 9 of 2020 dated April 22, 2020, If both quantum appeal covering disputed tax and appeal against penalty levied on such disputed tax for an assessment year are pending, the declarant is required to file a declaration form covering both disputed tax appeal and penalty appeal. However, he would be required to pay relevant percentage of disputed tax only. Therefore, penalty under section 271(1)(c) of the Act will be waived.
The problem above is penalty not levied and hence appeal not pending.HOW TO DISCLOSE ABOVE IN FORM OF THE ABOVE SCENARIO IS THE QUESTION.
IT IS VERY CLEAR THAT PENALTY LEVIED OR LEVIABLE WILL BE WAIVED.