Re: Value of assets if disputed tax is paid under VSV
If Addition made by AO u/s 50C and Sec 56(2)(X) without referring to DVO and made addition . Aggrieved by Addition Assessee filed Appeal before CIT Appeal . Now Assessee want to go in Vivad se Vishwas scheme , then want will Purchase Cost of immovable property as mention above after opting under VSV scheme .
Means , At the time of Sale of property, Purchase cost of property should have take Sec 50C value on which I pay tax under the scheme or original purchase cost for which I have bought the property ..?? ( Simple meaning Will Assessee be allowed to increase the Purchase cost to Sec 50C value if the pay tax under the Scheme )
The querist may have to settle the addition made by the AO . Cost will be as per the assessment order. It may be desirable to the querist to contest the appeal rather than opting the VSV Scheme.
In vivad sa viswas scheme there is no option to recaluclate the income or tax. Under this scheme the applicant has to pay the disputed tax as worked out in the notice of demand as per working therein and the amount of interest and penalty imposable will be waived. Hence the querry raised in question is not relevant under the Vivas sa viswas schemem.