Re: Form 3 not issued

An assessee filed his declaration under Vivad se Vishwas on 21.03.2020 and also paid due tax before filing declaration. The CIT had to issue form 3 within 15 days as per section 5(1) but even after lapse of 20 days Form 3 has not been issued. What will be the fate of declaration ? Will it be deemed to have been rejected for no fault of the assessee ? Will it be deemed to never have been filed ? Will it be deemed to have been accepted ? Kindly guide. Thanks

From our understanding if your query, there is a delay on the part of the department to issue certificate i.e. Form 3 within a period of 15 days as per section 5(1) of VSVA. Given the current pandemic situation, it would be rational to assume a delay in the functioning of Offices. 

Rest assured, the declaration will not be deemed to be rejected or never been filed as it will be protected under the decision of the Supreme Court in the case of Suo Motu Writ Petition (Civil) No(s).3/2020 dated March 23, 2020 wherein it has been held that to ease the difficulties faced by the litigants and their lawyers across the country in filing their petition/ applications/ suits/ appeals, irrespective of the limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f. 15th  March 2020 till further order/s to be passed by this Court in present proceedings.

If the application is rejected ,it is against the principle of natural justice . One can challenge the such order by filing writ petition. In C.B. Gautam v .UOI (1993) 199 ITR 530 (SC) the Court held that , though the provisions of Chapter XXC did not provide an opportunity to be heard to be given before order of purchase as also do not provide to disclose reasons recorded to affected parties on challenges as to being violative of Article 14 of the Constitution of India . In  Dhakeswari Cotton Mills Ltd v. CIT ( 1954) (SC ) ,where the principle of natural justice were violated , the Supreme Court set aside the assessment . 

At  a meeting held on  6-4-2020 by the ITAT , with the Chairman CBDT a specific request was made not to reject the application without giving an opportunity of hearing heard.      

 

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