Re: Query rearing VsV scheme and orders

The appeal of the assessee was pending as on 31/01/2020. Assessee had filed application under VsV scheme against which form 3 was also issued. Now subsequent to the issue of form 3 and before filing of form 4 or payment of taxes, CIT(A) heard and disposed off the appeal on merits in favour of assessee.

Now suddenly after 45 days CIT(A) has passed an order u/s 154 treating the order passed u/s 250 on merits to be non-est since assessee had applied for VsV scheme and form 3 had been issued.

Does CIT(A) have power to pass such 154 order and is it maintainable???
Can the order passed by CIT(A) be treated as non-est just because assessee had applied for VsV scheme and form 3 had been issued???
What alternate options does assessee have against the said 154 order.

The Commissioner (Appeals) does not have the power to review his order but can pass orders for rectification under section 154 of the Act.  Recalling the order which was decided on merit will lead to review of the order , which is not permissible under the law . The assessee may file an appeal before the Appellate Tribunal against the order passed u/s 154  passed   by the CIT (A ) and make an request for an early hearing of appeal . If the assessee has paid the tax under the scheme the amount paid will not be refunded .  Whether to avail the VSVS Scheme or not is at the option of the assessee.  When the payment is not made the application will be rejected but appeal cannot be   dismissed.  Please refer  circular No . 21 / 2020 dt 4 -12- 2020  Q. No 89  and Ans.  The CBDT clarified that  declaration can be revised any number of times before the DA issues a certificate under section 5 ( 1) of the Vivad Se Vishwas . 

 

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