1. The CIT(A) has given part relief in an appeal. The department is in appeal for that portion before ITAT, however the assessee has not preferred appeal for against the issues decided against him.

2. The AO has levied penalty on the total additions and against which the assessee is in appeal before CIT(A).

3. Now the assessee wishes the settle the quantum in the scheme by paying 50% of the tax on the disputed additions.

Query:

As per the scheme and FAQ 8, it is important to note 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 giving details of 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.”

As per FAQ 38, it is important to note that

“Under Vivad se Vishwas, interest and penalty will be waived only in respect of the issue which is disputed in appeal and for which declaration is filed. Hence, for the undisputed issue, the tax, interest and penalty shall be payable”.

Query:

In the above circumstances the assessee is being put in a jeopardy, which will cause undue hardship as the assessee will have to now pay the penalty on issues decided against the assessee for which he is not in appeal.

Please enlighten us on the violation of Article 14 in the above case as well sir.

I would be more than obliged.