Re: Whether pendency of revision petition u/s 264 is eligible to file declaration under VSV Scheme
Thanks for answer given by your goodself to my query regarding applicability of this scheme where petition u/s 264 has been filed. I understand that the case is covered for filing declaration under the scheme. But the Designated Authority has rejected my declaration with the following reasons:
“The assessee has filed declaration on disputed tax determined u/s 143(3) r.w.s 147 wherein only Rs.515/- was added to the returned income, the assessee is in revision u/s 264 and has disputed the entire income assessed u/s 143(3) which included included returned income of Rs.687490/-. Since the declaration is factually incorrect, the same is being rejected.”
As already brought to you in my query, I have filed revision petition on the issue of income wrongly declared in the ITR on account of long term capital gain as the land sold was not a capital asset and only 50% share of sale consideration belong to assessee. The returned income was declared wrongly by the tax professional. In view of these facts, pl. guide whether the decision of the designated authority is as per Law. If not which remedy should be taken to avail the benefit of this scheme. THANKS FOR HOPING FOR EARLY REPLY.
Considering the facts of the assessee , it may be desirable to argue the matter before the competent Authority on merit. Designated Authority under Vsv Scheme cannot decide the issue on merit . The view of the Designated Authority is in accordance with the law .
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