SMT YOGITA HARESH VORA,MUMBAI vs. ITO WARD-34(3)(5), MUMBAI

The quarrel revolves around the fact that the assessee opted for Vivad Se Vivad Scheme and filed Form No. 1 and 2. Form No.3 was issued by the CIT and the assessee was required to make the payment as per the Scheme by 31.03.2021. I.T.A. No. 6214/Mum/2024 & I.T.A. No. 6215/Mum/2024

Since the assessee had filed Form No.3, the CIT(A) treated the appeal filed before him as deemed to be withdrawn.

Since the assessee did not pay the taxes as per the Scheme, she prayed for the revival of the appeal by way of a rectification application. The same was also dismissed as the appeal filed by the assessee was deemed to be withdrawn.

Representatives of both the sides were heard together at length. Case records carefully perused.

The CBDT Circular No.7 of 4th March, 2020 at Question No.49 answered as under: “Question No.49 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: Yes it would be void.”

As per the above answer of the Board, it is crystal clear that if the assessee does not make the payment of the taxes, her declaration shall be treated as null and void. Since in the case in hand after filing the declaration the assessee did not pay the taxes, her declaration shall be treated as null and void and the CIT(A) ought to have decided the appeal on merits of the case.

Therefore, in line with the CBDT Circular (supra), we restore both the captioned appeals to the file of the CIT(A). The CIT(A) is directed to decide the grievance afresh after affording reasonable and adequate opportunity of being heard to the assessee. Both the appeals are deemed to be allowed.

In the result, both the appeals are allowed for statistical purposes.

अपीलाथ / The Appellant 2.  थ / The Respondent 3. संबंिधतआयकरआयु" / Concerned Pr. CIT 4. आयकरआयु" ) अपील ( / The CIT(A)- 5. िवभागीय ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file.