Re: Search case + penalty 271AAB
Assessee in appeal before CIT(A) for quantum. Penalty imposed under 271AAB for both sub clause (a)and (c) of sub section(1) and this appeal is also pending before CIT(A).
The issue in respect of penalty under clause (a) which is on surrendered income and disclosed in the return not pending in quantum appeal before CIT(A).
Whether under VSVS the assessee would be required to pay 125% for the settlement of quantum and penalty under clause (c) of section 271AAB(1) and 25% for penalty penalty under clause (a) of section 271AAB(1).
In the present case, appeal is pending before CIT(A) for quantum as well as penalty. Penalty is levied under 2 sub clauses i.e. (a) and (C) of section 271AAB(1) of the Act. Therefore once the quantum appeal is settled, the penalty under clause (c) of section 271AAB(1) will automatically be waived off. Therefore, the penalty under clause (a) will have to be separately settled and the same can be done by paying 25% of the penalty demand as there is no consequent addition made under the quantum proceedings.
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