Appeal before CIT(Appeals) is pending regarding deduction under section 54F as on 31-01-2020 . Even though one hearing took place before 31-01-2020, neither order nor enhancement notice was issued. In the meanwhile notice under section 263 was issued on the ground that the assessing officer failed to apply section 50C in the month of August 2019. The assessee replied that as per the decision of the jurisdictional high court decision in the case of Renuka Phillip, section 263 cannot be invoked during the pendency of Appeal and the assessee is willing to avail the VVS scheme if the proceedings under section 263 are dropped. However order has been passed under section 263 setting aside the assessment with a direction to the assessing officer to apply section 50C on 21-03-2020 in spite of the willingness of the assessee to avail VVS. Now that the assessment is set aside, whether the appeal would become infructuous and the assessee will not be able to avail VVS. Can he avail VVS in respect of the dispute with reference to section 54F only and dispute the application of section 50C by requiring the assessing officer to make a reference to valuation officer. Or can he file appeal to the Honourable Chennai ITAT against 263 order. Is the PCIT correct in setting aside the assessment when appeal is pending before CIT(Appeals) and it is possible that that the assessment order may be annulled for technical reasons like non issue of notice under section 143(2) and enhancement notice was not issued before 31-01-2020 even though the case was already heard by the CIT(Appeals ) in February 2019 itself.