As per the proviso to Rule 9(2), if the declarant opts not to pay tax and carry forward the reduced losses, then in subsequent years the assessee shall be liable to pay interest.<\/p>\n
Suppose there are two pending appeals of A Ltd and for Year 1 the returned loss was Rs 15 lakhs and the addition made by the AO was of Rs 15 lakhs.<\/p>\n
For year 2, the returned income was 5 lakhs after set off of loss of year 1. In this, the addition made is of Rs 10 lakhs and also denied the loss i.e, assessed income became 30 Lakhs.<\/p>\n
Here, the assessee wishes to opt for VsV scheme for both the years and exercise the option of carry forward the reduced loss.<\/p>\n
Whether Interest u\/s 234B, 220 is leviable in year 2 ?<\/p>\n","protected":false},"excerpt":{"rendered":"
As per the proviso to Rule 9(2), if the declarant opts not to pay tax and carry forward the reduced losses, then in subsequent years the assessee shall be liable to pay interest. Suppose there are two pending appeals of A Ltd and for Year 1 the returned loss was Rs 15 lakhs and the addition made by the AO was of Rs 15 lakhs. For year 2, the returned income was 5 lakhs after set off of loss of year 1. In this, the addition made is of Rs 10 lakhs and also denied the loss i.e, assessed income became 30 Lakhs. Here, the assessee wishes to opt for VsV scheme for both the years and exercise the option of carry forward the reduced loss. Whether Interest u\/s 234B, 220 is leviable in year 2 ?<\/p>\n