Re: set aside matters
AO made addition U/s 68 of Rs. 57 crore in various assessment year. CIT(A) confirm the same. Before ITAT appellant took a plea that loan taken in initial years were repaid in subsequent years and out of cash received on such repayment it has taken fresh loans/ share capital. AO made addition in both the years without giving benefit of telescoping. Once such benefit given the addition will reduce to Rs. 17 crore. ITAT set aside the matter to AO to grant benefit of telescoping after verification of nexus, which is pending as of date. Now assessee wants to opt for VSVS. Whether he has to consider Rs. 57 crore as addition or 17 crore and what will be rate of tax, whether 100% of tax or 50% of tax? Kindly suggest.
Appeal effect of the ITAT order should be requested. If the same is given before filing of declaration, then disputed tax can be computed on 17crs income. Issue as to whether disputed tax can be modified based on appeal effect given after 31 January 2020 is subject to clarification from CBDT. However, in our view, the same can be done – Refer Q25 and Q50 of the FAQ dt 4 March 2020.
If the appeal effect is not given, then disputed tax will have to computed considering entire 57crores (Refer Q7 of the FAQ dt 4 March 2020).
Leave a Reply