Assessee can file the declaration ,however the assessee  has to pay the  tax in dispute . If the tax is paid , there will not be interest and penalty ,    the assessee  will get  the refund of the interest and penalty .

As we understand, in a case if CIT adds 100 rupees, and subsequently the ITAT reduces it by 50 percent i.e. 50 rupees. It is a favourable order to the extent of 50 percent. Therefore, the assessee should be allowed to avail the scheme by settling the dispute at tax payable on 25 percent addition along with the upheld addition of 50 percent i.e. 75 percent.

Applying the same principle, if 8 percent addition is reduced to 3 percent i.e. 5 percent relief is granted. The disputed tax amount should be computed at 5.5 percent. [3 percent + 50% of (5 percent)].

As per 2^nd proviso to section 3 of VSVA, the favourable order should be of the assessee only and cannot be in case of any other assessee with similar/identical facts. Whether the purchases  from  Bhanwarlal Jain Group or other group it may not be any difference .  We have to refer section 9 which deals with certain exceptions referred therein only .Facts of the querist is not covered under the exception.

Yes, As per explanation to section 7 of VSVA, where the declarant had, before filing the declaration paid any amount under the Income-tax Act in respect of his tax arrears which exceeds the amount payable under section 3 of VSVA, he shall be entitled to a refund of such excess amount, but shall not be entitled to interest on such excess amount.

Yes, your understanding is correct, an appeal can be filed against an Order under section 143(1) of the Act. Further, there is no reason as to why an order under section 143(1) of the Act should be excluded from the scope of VSVA. It is advisable to approach the designated authority under VSVA to seek clarification. If no reply is received once can file a writ petition before the High Court 

As we understand, there is no need to fill challan details in the event of a refund, and when the appeal is pending before the CIT(A) the same is deemed to have been withdrawn, therefore there is no question of filing a proof of withdrawal.

In case there is a problem in submitting the form without the above-mentioned details, it is advisable to contact your Designated Authority under VSVA.  

The assessee can once again file under VSVA and this time chose the filing type as “revised” for the same AY.

The proviso reads as under “ Provided further that in a case where an appeal is filed before the Commissioner (Appeals) or objections is filed before the Dispute Resolution Panel by the appellant on any issue on which he has already got a decision in his favour from the Income Tax Appellate Tribunal (where the decision on such issue is not reversed by the High Court or the Supreme Court) or the High Court (where the decision on such issue is not reversed by the Supreme Court), the amount payable shall be one-half of the amount in the Table above calculated on such issue, in such manner as may be prescribed”

By reading the proviso   it is clear that  the dismissal of appeal by the Appellate Tribunal  will also amount to  order of the Appellate Tribunal  hence the assesee  is eligible for  concessional rate of 50% of  disputed tax .

From what we understand, the issue seems to be prima facie good on merits and there doesn’t seem to be a need to avail VSVA.

We presume that there was search earlier and the assessment was finalised under section  143(3) of the Act and the appeal is pending . Mean time one more search and seizure action  was initiated and the order was passed u/s 153A , read with section 143(3) of the Act.  One the relevant assessment is covered under the search and seizure action the rate of tax applicable will be at 125% as per section 3 (b) of the VSV Act.  

The assessee is eligible for VSVA.  He has to settle the appeal which is pending against the order under section 263 of the Act. Once the order under section 263 is settled , consequential order passed by the AO  giving effect to the order of under section 263 , which is pending before the CIT(A) will not  survive .In  ACIT v .Oscar Investment Ltd. (2020) 81 ITR 81 (SN) (Delhi)  (Trib)  the Tribunal held that when an order under section 263 had been quashed by the Tribunal, all resultant proceedings including the present appeals would not survive .

The assessee is eligible for VSVA.  He has to settle the appeal which is pending against the order under section 263 of the Act. Once the order under section 263 is settled , consequential order passed by the AO  giving effect to the order of under section 263 , which is pending before the CIT(A) will not  survive .In  ACIT v .Oscar Investment Ltd. (2020) 81 ITR 81 (SN) (Delhi)  (Trib)  the Tribunal held that when an order under section 263 had been quashed by the Tribunal, all resultant proceedings including the present appeals would not survive .