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Facts
The assessee appealed an order of the CIT(A) after applying for settlement under the Direct Tax Vivad Se Vishwas Scheme, 2024. The assessee contended that the CIT(A) disposed of the appeal without awaiting the outcome of the settlement application.
Held
The Tribunal held that the CIT(A) should not have disposed of the appeal without considering the pending settlement application under the Vivad Se Vishwas Scheme. The Tribunal restored the issue to the CIT(A) for fresh adjudication pending the outcome of the settlement.
Key Issues
Whether the CIT(A) erred in disposing of the appeal while the assessee had an application pending under the Direct Tax Vivad Se Vishwas Scheme, 2024.
Sections Cited
250
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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
O R D E R
PER SAKTIJIT DEY, VICE PRESIDENT:
This is an appeal by the assessee against order dated 22.09.2025 of learned ADDL/JCIT(A), Bhopal (‘ld. CIT(A)’ for short), passed u/s. 250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2015-16.
The limited grievance of the assessee before us, as articulated by the learned Counsel appeared for him is during the pendency of the appeal before the First Appellate Authority, the assessee had applied for settling the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2024. It is submitted before us that though it was brought to the notice of learned First Appellate Authority that assessee’s declaration for settling the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2024 is still pending, however, ignoring such submission, learned First Appellate Authority has proceeded to dispose (A.Y. 2015-16) Rishabh Harsh Mariwala off the appeal confirming certain additions. Thus, he submitted, the order of First Appellate Authority be set aside and issues may be restored back to him for fresh adjudication pending outcome of assessee’s declaration under the Direct Tax Vivad Se Vishwas Scheme, 2024.
The learned Departmental Representative (‘ld. DR’ for short) did not express any serious objection against such request of the assessee.
Having considered rival submissions, we find that in course of proceeding before learned First Appellate Authority, the assessee did make a submission that his declaration under the Direct Tax Vivad Se Vishwas Scheme, 2024 though was made on 31.01.2025, however, there is no final outcome. Thus, request was made before the First Appellate Authority not to dispose off the appeal. Prima facie it appears, the aforesaid submission of the assessee was completely overlooked by the learned First Appellate Authority as he decided to proceed with the appeal and ultimately disposed off the grounds on merits. This in our view is incorrect. Once the department has come forward with a scheme for settlement of dispute all out effort should be made by the stakeholders to make the scheme successful.
From the facts on record, it appears that the assessee had intended to avail the benefit of the scheme by making a declaration in form I. It is the say of the assessee before us that the said declaration is still pending before the competent authority. Thus, in our view, the assessee must be given chance to settle the disputes under the Direct Tax Vivad Se Vishwas Scheme, 2024. If ultimately assessee’s declaration under the scheme is not accepted for whatever may be the reason, learned First Appellate Authority will be free to take any decision on merits on the appeal filed by the assessee. Since the (A.Y. 2015-16) Rishabh Harsh Mariwala assessee’s declaration under the Direct Tax Vivad Se Vishwas Scheme, 2024 has not attained finality, we are inclined to set aside the impugned order of learned First Appellate Authority and restore the issues back to him for fresh adjudication is warranted depending upon the outcome of assessee’s declaration under the Direct Tax Vivad Se Vishwas Scheme, 2024. Needless to mention, if for any reason assessee’s declaration is not accepted by the competent authority, the assessee must be provided due and reasonable opportunity of being heard before deciding the appeal. Grounds raised by the assessee are allowed for statistical purposes.