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Facts
The assessee, UTV Software Communications Private Limited, filed an appeal against an order passed under Section 144C(5). During the proceedings, the assessee decided to opt for the Direct Tax Vivad se Vishwas Scheme (VSV Scheme) and filed Form 1, requesting to withdraw the appeal with a request for adjournment until receipt of Form 2 from the Designated Authority.
Held
The Tribunal noted the assessee's request and the department's non-objection. It allowed the withdrawal request, dismissing the appeal as withdrawn, but granted the assessee the liberty to seek restoration of the appeal if the settlement under the VSV Scheme does not materialize.
Key Issues
Whether an appeal before the ITAT can be withdrawn by the assessee upon opting for the Direct Tax Vivad se Vishwas Scheme, with a provision for restoration if the settlement fails.
Sections Cited
144C(5), 253, 143(3), 144C(13)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “J”, MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI RAJ KUMAR CHAUHAN
O R D E R PER RAJ KUMAR CHAUHAN (J.M.): 1. The appeal filed by the appellant/assessee against the Ld. Commissioner of Income Tax (DRP-2), Mumbai [Ld. CIT(A)], Mumbai dated 25.09.2024 passed u/s. 144C(5) of the Act for AY 2021-22.
UTV Software Communications Private Limited 2. At the outset, our attention was drawn towards letter dated 12.05.2025 wherein the assessee has requested to withdraw the appeal as the assessee has decided to opt for the settlement of the appeal under Direct Tax Vivad se Vishwas Scheme (VSV Scheme). The operative portion of the letter extracted as under:-
The captioned appeal was filed by the Appellant on 26 December 2024 before the Hon'ble Income Tax Appellant Tribunal, ('ITAT') Mumbai, J Bench under section 253 of the Income Tax Act, 1961('the Act') against the order of the learned Assessing Officer passed under section 143(3) read with section 144C(13) of the Act dated 23 October 2024 The captioned appeal is scheduled for hearing on 14 May 2025 The Appellant respectfully submits that it has decided to opt for the settlement of the captioned appeal under the Direct Tax Vivad se Vishwas Scheme, 2024 ('VSV Scheme'). The Appellant has filed Form 1 (i.e., declaration and undertaking as per the provisions of section 91 of the VSV Scheme) with the Designated Authority ('DA') on 28 April 2025 and is awaiting the certificate to be issued by DA in Form-2.
It is submitted that as per the provisions of section 91(2) of the VSV Scheme, upon filing of VSV declaration in Form 1, any appeal pending before the Income Tax Appellant Tribunal or Commissioner (Appeals) or Joint Commissioner (Appeals) shall be deemed to be withdrawn from the date on which DA issues certificate under section 92(1) of the VSV Scheme (i.e., Form 2)
In the light of the above, we humbly request the Hon’ble Bench to kindly adjourn the matter till receipt of Form 2.
On the other hand, Ld. DR did not object to the said request of withdrawal.
Considering the contents of the letter as mentioned above, we allow the request of the assessee for withdrawing the present appeal.
In the result, the appeal filed by the assessee is dismissed as withdrawn with the liberty to get it restored, in case, the settlement is not worked out.
Order pronounced in the open court on 20.05.2025