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Mihir

Mihir Tanna819 Answers  |Ask -

Tax Expert - Answered on Jan 28, 2024

Asked on - Jan 16, 2024Hindi

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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
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The appeal was not withdrawn by me, also after the deadline for payment of tax under the VSVS scheme expired and my not filing of Form no -4 I was asked to pay the minimum required amount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infructuous as Form no. 3 has already been issued to me u/s. 4(2) of DTVSVS Act 2020 and my appeal therefore is deemed withdrawn u/s 4(2).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on the ground that that the moment designated authority issues Form no. 3, pending appeal shall be deemed to have been withdrawn.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in as much as in case the declarant violates any of the conditions, then all the proceedings and claims which were withdrawn u/s. 4 and all the consequences under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.
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