Re: penalty kept in abeyance eligible under vivad se vishwas
1) CIT Appeal filed against quantum order for Tax & Interest.
2) Notice issued u/s. 274 for penalty u/s. 271(1)(c), received and assesse requested to assessing officer to keep the same in abeyance till disposal of CIT Appeal.
3) Said penalty kept in abeyance till final disposal of quantum appeal by Assessing Officer and Penalty Order from Assessing Officer Not Received till filing under Vivad Se Vishwas Scheme.
4) If quantum appeal applied under Vivad se Vishwas Scheme, at later date/ after payment of quantum, penalty is payable or same covered under Vivad se Vishwas Scheme?
As per Question No. 8 of CBDT Circular No. 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, ipso facto if the quantum is settled under VSVA, the penalty will get settled along with it
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