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Mihir Tanna |998 Answers |Ask -Follow

Tax Expert - Answered on Jan 28, 2024

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by JAMES on Jan 16, 2024Hindi

I had filed an Appeal against an order of I.Tax levying on me heavy tax by improper addition to my income in the year 2018, thereafter I applied in Direct Tax Vivad se Vishwas scheme but could not pay due to financial crisis, what shall be the status of my appeal?

Ans: As you must be aware that application was required to be filed in Form 1 along with declaration in Form 2. Designated authority within 15 days determine the amount payable and intimated the same in Form 3. Taxpayer pay amount, withdraw the appeal and submit the proof of both in Form 4.

I understand that you have not filed Form 4. If you have not withdraw the appeal, you can check the status of appeal online and if order is not passed by CIT(A); you can file necessary submission supporting your grounds of appeal.

Asked on - Jan 28, 2024 | Answered on Feb 24, 2024

The appeal was not withdrawn by me, also after the deadline for payment of tax under the VSVS scheme expired and my not filing of Form no -4 I was asked to pay the minimum required amount of 20% of assessed tax amount for continuing the appeal, I was given a hearing on 14/12/2023 ending on 20/12/2023. I applied an online adjournment of hearing on 20/12/2023 and was successfully accepted. I received an order dated 21/12/2023 stating the Appeal has become infructuous as Form no. 3 has already been issued to me u/s. 4(2) of DTVSVS Act 2020 and my appeal therefore is deemed withdrawn u/s 4(2). Kindly, advise me in view of the fact that I have not made any payment nor filed any Form -4 under VSVS nor any application for withdrawal of appeal was made by me.

Ans: Department took similar view in IN THE CASE OF M/s. LIFECELL INTERNATIONAL PRIVATE LIMITED. However, order was challenged before Hon'ble Mumbai ITAT (ITA NO. 3334/CHNY/2019) and case was decided in favor of the taxpayer on the ground that that the moment designated authority issues Form no. 3, pending appeal shall be deemed to have been withdrawn. However, the law is very clear, in as much as in case the declarant violates any of the conditions, then all the proceedings and claims which were withdrawn u/s. 4 and all the consequences under
the Income-tax Act, 1961 against declarant shall be deemed to have been revived.

Thus, take help of some tax consultant who can appear before ITAT and after doing cost benefit analysis (cost of filing and appearing before ITAT Vs expected benefit) you can take decision for further course of action.

Asked on - Feb 27, 2024 | Answered on Feb 29, 2024

Thank you very much for your precious advice. My consultant had put the matter for Rectification and no order has been received thereafter, should we wait for the Rectification Order or simultaneously file the Appeal with the ITAT.

Ans: Appeal needs to be filed within 60 days of receipt of CIT(A) order and it is already more than 60 days.
Disposal of rectification application may take time. Thus, File appeal with ITAT with condonation application.

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