Re: VSVS Query Anish
VSVS query?
A sold land at 5 Cr, claimed 1 Cr expense on removing encroachment and Rs.1 cr transfer/improvement cost. AO disallowed 1 Cr expense but allowed 1 Cr improvement cost.
A challenged 1 Cr addition. citA allowed full relief in Apr 2020.
Later on CIT passed 263 directing AO to disallow Rs.1 cr cost of improvement. Order u/s 143(3) r.w.s 263 passed disallowing 1 cr improvement cost.
A challenged order 263 before ITAT and order u/s 143(3) res 263 before citA.
If A wish to avail VSVS then what ld be tax demand?
Will it be against addition of rs 1 cr or 2 Cr (1 cr allowed +1 Cr pending appeal)?
Ay is same. Two different appeal filed. Both were pending as on 31.01.2020.
The assessee is eligible for VSVA. He has to settle the appeal which is pending against the order under section 263 of the Act. Once the order under section 263 is settled , consequential order passed by the AO giving effect to the order of under section 263 , which is pending before the CIT(A) will not survive .In ACIT v .Oscar Investment Ltd. (2020) 81 ITR 81 (SN) (Delhi) (Trib) the Tribunal held that when an order under section 263 had been quashed by the Tribunal, all resultant proceedings including the present appeals would not survive .
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