Re: Whether MA filed by the I Tax department against the ITAT decision to grant relief on Penny stock Capital Gain can be considered as appeal pending underVivad Se Vishwas Scheme
In my client case for A.Y. 2014-15, ITAT has granted relief against the addition made by A.O. on account of exemtion from Capital Gain claimed earned on Penny Stock.
Thereafter, I.Tax deaprtment filed MA against the decision of ITAT. The same is pending till date.
In the next A.Y. 2015-16, the identical exemption on Capital Gain claimed by assess was disallowed by A.O. and confirmrd by CIT(A).
The assessee has opted payment of tax for A.Y. 2015-16 under Vivad Se Vishwas Scheme.
He is interested to pay tax under Vivad Se Vishwas Scheme on A.Y. 2014-15 to avoid any disallownce by ITAT later on by restoring the appeal of A.Y. 2014-15,and reversing the decision, though its chances are very remote.
Kindly give your considered view, who the interest of assessee can be protected in the worst scenario.
Ca P K gupta
Yes, as we understand, it can be assumed that the miscellaneous application will be considered to be an extension of the appeal as a departmental appeal. The same can be settled accordingly under VSVA. Representation is made before the CBDT to clarify whether Pendency of Miscellaneous before the ITAT is covered or not . We are of the opinion that the departmental miscellaneous application my be rejected by the ITAT.
Yes, You can avail benefits of VSVS 2020. for the AY 2014-15, you have to pay tax @ 50% and for AY 2015-16 100%.
Regards,
CA D C GARG
I have somewhat similar situation..CIT Appeal was in favour and dept filed appeal against the order before ITAT. The case was remanded back by ITAT to ITO which was decided against the Assessee and against which appeal filed before CIT by the Assessee. CIT appeal passed ex parte order against the Assessee. In the meantime MA was filed before the ITAT by the Assessee objecting to its order for remanding the case back to ITO as to our understanding, it didn’t involve any question of fact. Now as on 31st January, there is this MA which is pending before ITAT and order of CIT(Appeals) against which I still have time to prefer appeal. Now is there any possibility that I opt for VSVS with 50% tax.