When the appeal is decided against the assessee . The department cannot file the appeal . The Department can file an appeal against a ground held in favour by the CIT(A). The Tribunal has no power of enhancement please refer Mcorp (P) Ltd v CIT ( 2009) 309 ITR 434 (SC). The declaration is valid . You may write to the ITAT to serve the grounds of appeal of the department . On reading the grounds  one may be able to decide whether the departmental appeal is valid or not. If the departmental appeal is in accordance with the law , one may think of contesting the appeal on merit or may also file a separate application under the scheme to settle the departmental appeal .

From what we understand from your query, the appeal is only pertaining to interest amount. As per section 3 of VSVA, where the tax arrear relates to disputed interest or disputed penalty or or disputed fee, the same can be settled at 25 per cent of the disputed amount (before December 31, 2020). 

Yes, your understanding is correct and in consonance with Q&A No 8. Of CBDT Circular No. 9 of 2020 dated April 22, 2020. In case of any technical issues arising while filling the form, it is advisable to contact your designated authority. In case designated authority is not responding it is advisable to make  representation before CBDT.  In case the CBDT is also not responding you may request the assessee file writ petition before High Court . We have received number of queries as regards the portal is not user friendly . You can think of making an  representation to BCAS or CTC so that they can file PIL before the Court , which can benefit all the assesees who are facing similar problems . 

Yes, according to our understanding   assessee may have to make the payment within 15 days of receipt of Form 3. The extension, in our understanding is with respect to scheme and  with respect to the last date until which payments can be made under VSVA.   Once the declaration is filed and form no 3 is received , the assesee has to comply the provision . 

Yes, according to explanation to section 7 of VSVA, it is clarified that 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 VSVA, he shall be entitled to a refund of such excess amount, but shall not be entitled to interest on such excess amount.

In case of any problems on the portal, it is advisable to contact your designated authority at the earliest. In case if you are not able to get the reply from the designated authority with in reasonable time , please write to Chairman CBDT . If there is no response from the CBDT  you may request your assessee to approach High Court by filing a writ petition .  

Reference is drawn to Question No. 8 of CBDT Circular No. 9 of 2020 dated April 22, 2020, www.itatonline.org  wherein it is clarified 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. The assessee may consider filing  an  appeal against the order of CIT (A) dt 20-11-2019 with condonation of delay and request the CIT (A) to decide  first  only on condonation of delay . If CIT (A) condone the delay the assessee can take the advantages of the scheme . Please refer   unreported judgement of Bombay High Court  Awantika Pratap Singh Morarji v Ashwin Kumar (CIT ) WP No 1691 of 2005 dt 9-07 -2014 dealing with KVSS  honourable High Court has directed the designated authority to grant the benefit of the scheme , when the delay was condoned by the Appellate Tribunal .     

If the quantum is  pending as on 31 -01 2020 ,the assessee can opt for the scheme  in respect of quantum appeal .  Once quantum  appeal is settled the dept  cannot levy the penalty . Please refer Q. No 45  CBDT Circular No. 9 of 2020 dated April 22, 2020, www.itatonline .org  wherein the CBDT clarified that As per S.6 subject to the provisions of S.5 DA shall not initiate any proceedings or impose or levy any penalty .

Please refer Q. No1   CBDT Circular No. 9 of 2020 dated April 22, 2020, www.itatonline .org  Ans : Appeals pending before the appellate forum  as on the 31 St day of January 2020 (Specified date ) are covered .  From what we understand, the appeal has been disposed by a competent authority  after the specified date. Ie 31-01 2020 and appeal is pending in higher forum .  The  assessee can avail  the benefit of the scheme , if the assessee is able to show that the appeal disposed by the competent authority without following the due process of law , eg. Ex  parte  . In such a situation the assessee can take the ground of principle of natural justice . If the appellate forum set aside the appeal to the competent authority to decide the appeal in accordance with law . when the appeal is set aside, the assesssee can avail the benefit of the VSVS . On facts it seems the assessee may not be covered under the  VSVS. |.

The same is included as 2^nd proviso under section 3 of VSVA. As a proviso it is a carve out from the meaning of the section and the same cannot be given a wider interpretation to include more than what is expressly mentioned. Accordingly the disputed tax @ 50 % of tax cannot be made applicable where the CIT (A) has decided the issue in favour of  the assessee.