Re: Penalty
What if the penalty issue is already in favour of the assessee by an order of superior authority, will the assessee qualify for the 50% payment criteria?
No specific Clarification provided in this regard
What if the penalty issue is already in favour of the assessee by an order of superior authority, will the assessee qualify for the 50% payment criteria?
No specific Clarification provided in this regard
Assuming penalty on a similar issue though imposed was deleted by the ITAT and the said order remains unreversed by the HC or SC and thus, attained finality on 31.01.2020.
The present disputed penalty is therefore a covered issue and the benefit of 2nd and 3rd proviso to S. 3 of the VsV Act, allowing concessional rate (being 50% – hence 12.5% in case of disputed penalty), is available in this case.
It may be clarified that such benefit is not confined to quantum appeal only, as the said 2nd and 3rd proviso refers to only eligible appeal (which includes quantum and penalty appeal both).
Adv. Mahendra Gargieya
Jaipur.
gargieyas@gmail.com