Question And Answer
Subject: Whether arbitrary Rejection of Form No – 1 filed under DTVSV Act, 2020 is justified ? , What is the remedy ?
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Date: May 15, 2021
Query asked by SANJIV MEHROTRA

Company filed the Form-1 with declaration on 25-12-2020 without payment of tax on reduction of losses or depreciation as per Rule 9 (1) (ii) of the DTVSV Act, 2020 with option to carry forward the reduced amount of loss or unabsorbed depreciation as per the provisions of said Act. Company received a notice dated 30-03-2021 {practically after 3 months and that too on last date of VSV Scheme} from Ld. Income Tax Authorities mentioning therein the figures of “Unabsorbed Losses” and “Unabsorbed Depreciations” as computed by them with direction to the Company to  revise the  figures of Form-1 as per their  computation and file the same by 31-03-2021 [ last date of filing VSV Forms ].

In compliance of said notice dated 30-03-2021 Company revised the figures of Form-1 and filed the revised Form-1. Besides, Company also furnished its unconditional consent to agree with the figures of Ld. Designated Authority as mentioned in the notice dated 30-03-2021 through email dated 31-03-2021 as well as subsequent e- response dated 09-04-2021 through e-proceeding portal. However, despite the consent of the Company as above, Ld. Designated Authority arbitrarily rejected the revised VSV Forms of the Corporation on 15-04-2021 { within 15 days of filing revised form -1 } without giving any reasonable opportunity with a vague and unjustified reason that revised VSV declaration Forms are still defective.

What legal course of actions are available to Company as Rejection order is not appealable?

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As we understand,

The assessee has filed the revised Form 1 as per the directions of the Designated Authority before March 31, 2021 and the Authority has dismissed the same with the remark that the Form filled is defective.

In absence of alternative efficacious remedy under the Law, the Company is advised to seek recourse by preferring a Writ Petition before the Hon’ble High Court.

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