The appeal was not withdrawn by me, also after the deadline for payment of tax under the VSVS scheme expired and my not filing of Form no -4 I was asked to pay the minimum required amount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infructuous as Form no. 3 has already been issued to me u/s. 4(2) of DTVSVS Act 2020 and my appeal therefore is deemed withdrawn u/s 4(2).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on the ground that that the moment designated authority issues Form no. 3, pending appeal shall be deemed to have been withdrawn.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in as much as in case the declarant violates any of the conditions, then all the proceedings and claims which were withdrawn u/s. 4 and all the consequences under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