Re: Finally assessed income on withdrawl of appeal

Assessee files Return declaring total income of Rs. 35 Lacs. Addition made by AO by enhancing valuation of stock by 25 lacs.
Assessee gets 100% relief before CIT appeals.
Department files appeal before ITAT which is still pending.
If assessee pays the 50% of tax as stipulated in the scheme and ask the department to withdraw the appeal.
After withdrawal of appeal by the department whether addition will be deemed sustained or returned income will be restored.

From what we understand, as per Section 5(3) of VSVA, 2020, Every order passed under sub-section (1), determining the amount payable under this Act, shall be conclusive as to the matters stated therein and no matter covered by such order shall be reopened in any other proceeding under the Income-tax Act or under any other law for the time being in force. Further, making a declaration under this Act shall not amount to conceding the tax position and it shall not be lawful for the income-tax authority or the declarant being a party in appeal or writ petition or special leave petition to contend that the declarant or the income-tax authority, as the case may be, has acquiesced in the decision on the disputed issue by settling the dispute.

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