Re: Levy of penalty u/s 271AAB
Dear sir/madam,
In a search, certain declarations were made. This was included in the return filed u/s 153A. In concluding the 153A assessments, certain other additions were made which are contested in pending first appeal. The penalty notice u/s 271AAB has been issued in respect of the declaration and no order is yet passed. In case, VSV Scheme is opted for, can we, in law, expect the penalty u/s 271AAB to be dropped? Our understanding is that, the penalty does not relate to “tax arrears” nor is the declared amount an issue under appeal. Will be grateful to your views.
Thanks in advance.
If the quantum is pending as on 31 -01 2020 ,the assessee can opt for the scheme in respect of quantum appeal . Once quantum appeal is settled the dept cannot levy the penalty . Please refer Q. No 45 CBDT Circular No. 9 of 2020 dated April 22, 2020, www.itatonline .org wherein the CBDT clarified that As per S.6 subject to the provisions of S.5 DA shall not initiate any proceedings or impose or levy any penalty .
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