Re: Will Appeal be reinstated if cannot make payment
Referring to Question 49 of FAQ dated 22 April 2020, where Question is “Once declaration is filed under Vivad se Vishwas, and for financial difficulties, payment is not made accordingly, will the declaration be null and void?” Answer given is “Yes it would be void.”
In continuation to the question, sub-section 2 of Section 4 states that “Upon the filing the declaration, any appeal pending before the Income-tax Appellate Tribunal or Commissioner (Appeals), in respect of the disputed income or disputed interest or disputed penalty or disputed fee and tax arrear shall be deemed to have been withdrawn from the date on which certificate under sub-section (1) of section 5 is issued by the designated authority.”
My Query is ‘Will our appeal be reinstated if we cannot make payment due to financial difficulties or can we make fresh appeal?’
Appeal will be reinstated if it is already withdrawn . When an application is made before the ITAT the Honourable members always state in the order , that in case the application is not accepted due to any reason, the assessee has right to reinstate the appeal. It may be desirable to write in the withdrawal letter that in case the application under VVS is rejected the liberty may be granted to reinstate the appeal . However it may be desirable to make an application for reinstate of appeal within reasonable time .
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