Vivad se Viswas Schene

My client was issued with Order u/s. 144 r w s 147. Including interest the demand was (600000 tax+1200000 interest) 16.00 lakhs. Assessee preferred appeal and paid 20% of the demand and approached for stay. In spite of CBDT circular, the AO did not grant stay and passed order u/s. 271(1)(c). Assessee now intends to avail the benefit under the VSV scheme and paid the balance tax of 280000. As per scheme, once you pay the disputed tax,interest and penalty shall be waived. In this case whether the penalty order will be automatically nullified. Assessee has not filed appeal against the penalty order since not served physically till date. Appeal for disputed tax was filed before 31.01.2020.