Re: Penalty order passed by AO

In our case, the CIT(A) has passed order as on 20.11.2019. Further the AO has passed order giving effect to the order of CIT(A) as on 10.12.2019. However, with regards to penalty proceedings, the AO has passed penalty order as on 27 February 2020 which is after designated date i.e. 31.01.2020. The query is can we consider our case with regards to penalty order under Vivad se vishwas.

Reference is drawn to Question No. 8 of CBDT Circular No. 9 of 2020 dated April 22, 2020, www.itatonline.org  wherein it is clarified that, 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. Further, it would not be possible for the appellant to apply for settlement of penalty appeal only when the appeal on disputed tax related to such penalty is still pending. The assessee may consider filing  an  appeal against the order of CIT (A) dt 20-11-2019 with condonation of delay and request the CIT (A) to decide  first  only on condonation of delay . If CIT (A) condone the delay the assessee can take the advantages of the scheme . Please refer   unreported judgement of Bombay High Court  Awantika Pratap Singh Morarji v Ashwin Kumar (CIT ) WP No 1691 of 2005 dt 9-07 -2014 dealing with KVSS  honourable High Court has directed the designated authority to grant the benefit of the scheme , when the delay was condoned by the Appellate Tribunal .     

 

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