Re: Divergence on amount of settlement

Taxpayer files declaration under VSV for a matter under appeal before ITAT with an amount payable say INR 15 lakhs. The designated authority while issuing certificate under section 5(1) of the Act, determines the amount payable as INR 20 lakhs. Taxpayer would not like to settle the dispute at INR 20 lakhs.

Query: Section 4(2) deems the ITAT appeal to be withdrawn from the date when certificate is issued under section 5(1). In this case what would be the recourse to the taxpayer wrt to such deemed withdrawal of appeal since he shall not settle the dispute under VSV?

The querist can write to the designated authority   rectify the tax calculation and issue fresh certificate . Further, there is no bar on refiling a fresh application under VSVA. If the calculation of tax is by the designated authority is not accordance with the scheme and the designated does not send a revised certificate  the assessee can file writ before the Honourable High Court .

 

 If  the payment has not made within 15 days of issuance of Form 3 i.e. Certificate under 5(1) of the Act. the declaration under Form-1 shall be treated as void and shall be deemed never to have been made. Therefore, the appeal would not stand withdrawn. When the matter come up for hearing before the Appellate Tribunal the assessee can argue the matter on merit .

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