DXC BERLINB.V,NETHERLANDS vs. DEPUTY COMMISSIONER OF INCOME-TAX, (INTERNATIONAL TAXATION) CIRCLE-1(1), BANGALORE

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ITITA 797/BANG/2023Status: DisposedITAT Bangalore24 April 2025AY 2021-223 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal held that as per the provisions of Section 91(2) of the DTVSV Scheme, 2024, any appeal pending before the ITAT or CIT(A) in respect of disputed tax arrears shall be deemed to have been withdrawn upon the issuance of a certificate under Section 92(1) of the DTVSV Scheme, 2024. The Tribunal noted that Form No.2, which is the Certificate under sub-section (1) of Section 92 of the Finance (2) Act, 2024, had already been issued by the Commissioner of Income Tax on December 31, 2024. Consequently, in compliance with the assessee's request letter dated January 10, 2025, and in accordance with the DTVSV Scheme, 2024, the appeal for the Assessment Year 2021-22 was dismissed as withdrawn. The Tribunal also granted liberty to reinstate the appeal if the assessee's application under the DTVSV Scheme, 2024, was not accepted for any reason. The operative direction was to dismiss the appeal as withdrawn.

What were the facts?

The assessee, M/s. DXC Berlin B.V., the Netherlands, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Bangalore Bench, challenging an order passed by the DCIT, International Taxation Circle 1(1), Bengaluru, under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961, for the Assessment Year 2021-22. The appeal was filed by the assessee. During the hearing, the assessee submitted a letter dated January 10, 2025, indicating that they had opted for the Direct Tax Vivad se Vishwas Scheme, 2024 (DTVSV Scheme) and had filed Form 1 DTVSV 2024. The designated authority had issued Form-2 for the Assessment Year 2021-22. The assessee requested the withdrawal of the appeal in compliance with the DTVSV Scheme. The Revenue had no objection to this request.

What were the issues?

1. Whether the appeal pending before the ITAT is deemed to have been withdrawn in light of the assessee opting for the Direct Tax Vivad se Vishwas Scheme, 2024, and the issuance of Form-2 by the designated authority? (Question of law, based on the provisions of the DTVSV Scheme, 2024). Assessee's contention: The assessee argued that having opted for the DTVSV Scheme, 2024, and with Form-2 already issued by the designated authority, the appeal pending before the ITAT should be withdrawn as per the scheme's provisions. They relied on the provisions of the DTVSV Scheme, 2024. Revenue's contention: The Revenue stated that they had no objection to the assessee's request for withdrawal of the appeal, acknowledging the assessee's participation in the DTVSV Scheme, 2024.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 91(2),Section 92(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B’’BENCH: BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI KESHAV DUBEY

For Respondent: Ms. Neera Malhotra, D.R
Hearing: 28.01.2025Pronounced: 24.04.2025

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of the ld. DCIT, Intl Taxation Circle 1(1), Bengaluru dated 25/08/2023 vide DIN & Order No. ITBA/AST/S/143(3)/2023- 24/1055433200(1) passed u/s 143(3) r.w.s 144C(13) of the Income Tax Act, 1961 (in short “the Act”) for the assessment year 2021-22.

2.

The assessee has raised various grounds in the appeal and also requested for admitting the additional grounds of appeal for adjudication.

3.

However, at the outset, during the course of hearing of appeal before us, the ld. A.R. for the assessee drew our attention to letter dated 10.01.2025 filed on 22.01.2025, wherein it is submitted that the assessee had already approached the designated authority to

IT(IT)A No.797 /Bang/2023 M/s. DXC Berlin B.V., the Netherlands Page 2 of 3 settle the captioned appeal under the Direct tax Vivad se Vishwas Scheme, 2024 (DTVSV Scheme) by filing the Form 1 DTVSV 2024 and the designated authority had already issued the Form-2 for the assessment year 2021-22. Consequently, in compliance with the provisions of the DTVSV Scheme, the assessee requested to allow for the withdrawal of the appeal.

4.

The ld. D.R. on the other hand has no objection towards the request for withdrawal of the appeal as the assessee has already opted for DTVSV 2024.

5.

We have heard the rival submissions and perused the materials available on record. As per the provisions of section 91(2) of the DTVSV Scheme, 2024, any appeal pending before the ITAT or CIT(A) in respect of disputed interest or disputed penalty or disputed fee or tax arrears shall be deemed to have been withdrawn upon the issuance of certificate u/s 92(1) of the DTVSV Scheme, 2024.

5.1 On going through the letter along with the enclosure marked Annexure-1 filed on 22.1.2025, we find that the Form No.2 i.e. Certificates under sub-section (1) of section 92 of the Finance (2) Act, 2024, is already issued by the ld. Commissioner of Income Tax on 31.12.2024. This being so, we, accordingly, as per the request letter dated 10.01.2025 for the assessment year 2021-22, dismiss this appeal of the assessee as withdrawn with a liberty to reinstate the appeal if the assessee’s application under the DTVSV Scheme, 2024 are not accepted for any reason. .

IT(IT)A No.797 /Bang/2023 M/s. DXC Berlin B.V., the Netherlands Page 3 of 3 6. In the result, the appeal filed by the assessee is dismissed as withdrawn. Order pronounced in the open court on 24th Apr, 2025

Sd/- Sd/- (Prashant Maharishi) (Keshav Dubey) Vice President Judicial Member

Bangalore, Dated 24th Apr,2025. VG/SPS

Copy to:

1.

The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order

Asst. Registrar, ITAT, Bangalore.

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