What did the Tribunal hold?

The Tribunal held that since the dispute was settled under the Vivad se Vishwas Scheme and accepted by the Principal Commissioner, the departmental appeal had become infructuous. The appeal was dismissed accordingly.

The revenue filed an appeal against the CIT(A)'s order. The assessee had applied under the Vivad se Vishwas Act, 2020, and received a certificate from the Principal Commissioner. This certificate signifies a settlement of tax dues.

What were the issues?

Whether a departmental appeal becomes infructuous when the assessee settles the dispute under the Vivad se Vishwas Scheme and receives a settlement certificate.

ACIT vs Dte Exports Private Limited… | ITAT Visakhapatnam 2021

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI N.K.CHOUDHRY, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE

For Appellant: Shri T.S.N.Murthy, CIT(DR)

Hearing: 28.01.2021Pronounced: 01.02.2021

Per D.S.Sunder Singh, Accountant Member :

This appeal is filed by the revenue against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]-3, Visakhapatnam in Appeal No.134/2019-20/CIT(A)-3/VSP/2019-20 dated 23.08.2019 for the Assessment Year (A.Y.) 2017-18. 2. When this appeal is taken up for hearing, the Ld.AR has filed a letter stating that the assessee preferred an application u/sec. 4(2) of Vivad Se M/s DTE Exports Pvt. Ltd., Guntur

Vishwas Act, 2020 and the Principal Commissioner (Central), Visakhapatnam was pleased to issue a Certificate in Form No.3 on 27.08.2020. The Ld.AR further stated that once Form No.3 is issued by the Pr. Commissioner, the appeal shall be deemed to have been withdrawn from the date on which Form No.3 is filed. The Ld.DR did not object for dismissal of appeal, however, submitted that appeal may be recalled in case the certificate issued by the Pr. Commissioner is withdrawn at a future date due to any unforeseen contingencies.

We have heard both the sides and gone through the Form No.3 and also the petition filed by the assessee praying for dismissal of the departmental appeal as the issue is settled under Vivad se Vishwas Scheme. During the appeal hearing, the Ld.DR did not object for disposal of the appeal as requested by the assessee, since, the Pr.CIT had issued Form No.3 determining the total tax liability as per sub section (1) of section 5 of Vivad se Vishwas Act towards full and final settlement of the tax dues. Since, the dispute is settled under the Vivad se Vishwas Scheme and accepted by the Pr.CIT, the appeal filed by the department becomes infructuous, hence the same is dismissed. However, it is open to the department to file an appropriate application before the Tribunal in case M/s DTE Exports Pvt. Ltd., Guntur

the certificate issued by the Pr. Commissioner is withdrawn at a future date due to non payment of taxes as specified in Form No.3 or any unforeseen contingencies. Accordingly, the appeal filed by the department is dismissed as infructuous.

In the result, revenue’s appeal is dismissed as infructuous. Order pronounced in the open court on 1st February, 2021. (एन के चौिरी ) (धड.एस .सुन्दर धसंह) (N.K.CHOUDHRY) (D.S.SUNDER SINGH) न्याधयक सदस्य / JUDICIAL MEMBER लेखा सदस्य /ACCOUNTANT MEMBER Dated : 01.02.2021 L.Rama, SPS

आदेश की प्रतितिति अग्रेतषि/Copy of the order forwarded to:- 1. राजस्व/The Revenue – Asst.Commissioner of Income Tax, Central Circle-2 Guntur 2. तिर्ााररिी/ The Assessee– M/s DTE Exports Private Limited, D.No.5-7-6, 1/5,Brodipet, Guntur

The Pr.Commissioner of Income Tax (Central), Visakhapatnam

The Commissioner of Income Tax (Appeals)-3, Visakhapatnam 5. तवभागीय प्रतितितर्, आयकर अिीिीय अतर्करण, तवशाखािटणम/DR, ITAT, Visakhapatnam 6.गार्ाफ़ाईि / Guard file आदेशािुसार / BY ORDER ////

Sr. Private Secretary ITAT, Visakhapatnam

THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, GUNTRU vs. DTE EXPORTS PRIVATE LIMITED, GUNTUR

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments