To settle the appeal under VSVA, only the disputed tax amount needs to be paid. Interest would be waived off. If any amount is already paid, the same would be adjusted against the dispute tax amount.

We presume that though the taxes were as per MAT provision the AO has made addition and the assessment is made on regular basis . Once the tax in dispute is settled  the assessee will get the credit for the taxes under MA

As per our understanding the revenue issued notice u/s 148 and assessed the income  at higher amount . One of the condition for availing the benefit of the scheme is the appeal must be pending as on 31 -1-2020  ie the specified date . We presume that the appeal is pending as on 31 -1 2020. We have to find out the quantum of addition is made and the tax in dispute in. appeal . The property being old the assessee is entitle to indexation benefit . We presume the AO has given the indexation benefit . When the assessee avails the benefit  VVSA  he will get the tax paid for the year under consideration .  If indexation is not given it may be advisable to take  additional grounds before CIT (A) and contest the  appeal on merits . 

If DTVSV is rejected  the appeal will survive . You can make an application to the concerned CIT (A) stating that as the application is rejected the appeal may be restored .Once tax is paid , certificate is issued by the designated authority the said certificate is final withdrawal of appeal is only technical formality  .

If  the appeal is passed ex  parte , the assessee can make an application for recalling the order , once the appeal is recalled it relates back the date of filing . Once the appeal is decided on merits  the assesse cannot avail the benefit of the scheme .

We agree with your understanding. We being a common law country every assessee would be subject to the decision of their jurisdictional High Court. Till the decision of the Supreme Court the Assessing office of respective State is bound to follow  the judgement of J urisdictional High Court  

With respect to the errors in the CPC order i.e. under section 143(1) of the Act. A redressal mechanism is laid down by fling a rectification application under section 154 of the Act or an appeal against  the intimation.   

 As per  Article 141 of the Constitution of India,  the law declared by the supreme Court shall be binding on all courts with in the territory of India . As  per the Article 227 of the constitution of India , every High Court shall have superintendence over all courts and Tribunals throughout the territories in relation to which it exercises jurisdiction . legislature cannot pass any law which is against basic structure of the Constitution of India . 

As per our  understand the AO has made entire addition in one year and the assessee is appeal before the Appellate Tribunal  for that assessment year as well as other years . If the AO has made protective addition in later years  and if the assesseee  takes the benefit of the scheme  in first year the protective assessment may not survive . On the other hand if later years additions are on other accounts  the assessee will not get automatic benefit . The assessee may have to contend that it will lead to double addition . The assessee may have to approach the designated authority , if designated authority or the Assessing  officer passes rectification order based on the declaration made in the first year  the assessee can avail the benefit of the scheme.

 Yes, on settlement of quantum, penalty would be waived. Please refer to Q. No. 8 of CBDT Circular 9 of 2020 Dated April 22, 2020. Which states that, if both quantum appeal covering disputed tax and appeal against penalty levied on such disputed tax for an assessment year are pending, the declarant is required to file a declaration form covering both disputed tax appeal and penalty appeal. However, he would be required to pay relevant percentage of disputed tax only. Further, it would not be possible for the appellant to apply for settlement of penalty appeal only when the appeal on disputed tax related to such penalty is still pending.

It is desirable to file rectification application before the CIT (A)  for restoration of appeal as the appeal was dismissed  for not attending  the matter . One has to read the order whether  the appeal was dismissed for not attending and without discussion on merits  or ex  parte on merits .  If the appeal is dismissed  on merits , it may be desirable to file an appeal  before the Appellate Tribunal with application for condonation of delay . The Tribunal may condon the delay if the reasonable cause is shown and may set aside the matter to the file of CIT (A) . Once the matter is set aside it relates  back  to the date of filing , hence the   assessee can avail the benefit of the scheme . The Commissioner (Appeals) is not empowered to dismiss an appeal for non-prosecution and is obliged to dispose of appeal on merits by passing a speaking order. This position was confirmed in the case of CIT (Central) v. Premkumar Arjundas Luthra (HUF) [2016] 240 Taxman 133 (Bom.) (HC), Swati Pawa (Ms.) v. DCIT [2019] 175 ITD 622 (Delhi.) (Trib) and HV Metal ARC (P.) Ltd. v. ACIT [2018] 173 ITD 606 (Delhi) (Trib).   One  may refer the judgement of Bombay High Court wherein the Court held that   the CIT (A) has no power to dismiss the appeal for not attending , he has to decide on merit 

We have to read the order passed by the Commissioner under revision . If the direction is not to allow carry forward  credit , the assessee should have filed an appeal before the Appellate Tribunal .If the order u./s 263 is simple set aside  the assessee can file an appeal before the  CIT (A) after giving effect to the  order of commissioner u/s 263 of the Act.  

Please refer Circular No 9 /2020   dt 22-04 -2020 , issued by the CBDT  which reads as under ; 

Q. no 53 : If loss is not allowed to be adjusted while calculating  disputed  tax, will  that loss be allowed to be carried forward ? 

Ans : As per the amendment  proposed in Vivad  se Vishwas, in a case where the dispute  in relation to an assessment year relates to reduction of Minimum Alternate Tax (MAT) credit or reduction of loss or depreciation, the appellant shall have an option either to (i)  include the  amount  of tax related to such  MAT credit or loss or depreciation in the amount of  disputed tax and carry forward the MAT credit or loss or depreciation or (ii) to carry forward the reduced tax credit or loss or depreciation. CBDT  will prescribe the manner of calculation in such cases. 

It is desirable to  wait and reads the clarification of CBDT as and when issued and take the appropriate decision .

As regards the merger one has to read the order of the Court sanctioning the scheme of merger .    In  DCIT v. TCS E-Serve International Ltd. (2019) 182 DTR 273 / 201 TTJ 997 (Mum.)(Trib.) Dismissing Revenue’s appeal, Tribunal held that even though no specific provision is provided in the Act in respect of carry forward and set off of MAT credit in respect of demerger, the credit for such MAT credit needs to be allowed to the assessee, and not to thedemerged Company (SEZ units).   The issue being debatable the designated authority may not be able to take  view unless the Board issues clarification .