SHREE AMBICA IRON INDUSTRIES,KOLKATA vs. ACIT, CIRCLE-37, KOLKATA, KOLKATA

In both these appeals, the assessee has raised a common issue assailing the order of Ld. CIT(A) on the ground that the Ld. CIT(A) has dismissed the appeal of assessee on the basis of Form 3 issued by the designated authority under Direct Tax Vivad-Se-Viswas Rule on 21.01.2021.

Facts in brief are that the assessee has gone into Vivad-se-Viswas scheme and has also been issued form 3 by designated authority on 21.01.2021 as per Direct Tax Vivad-se-Viswas Rules. However the assessee due to financial difficulties could not deposit the tax under the said scheme and consequently Vivad-se-Viswas scheme could not be availed. The Ld. CIT(A) dismissed the appeals of the assesse as withdrawn by citing the provision of Section 4(2) read with Section 5(2) of DTVSVS, 2021 as appeals deemed to be withdrawn on the date of issue Form 3 i.e. 21.01.2021.

The Ld. Counsel submitted that the assessee could not pay the tax as per Form 3 and thus could not take the benefit under the said scheme. The Ld. A.R. also stated that the Ld. CIT(A) has suo-motto dismissed the appeals on the basis of Form 3 and there was no request on the part of the assessee. The ld counsel contended that now since the benefit of the scheme could not be availed by the assesse due to financial stress, so the assessee is willing to pursue these appeals on merit before the Ld. CIT(A). The Ld. A.R prayed that both these appeals may kindly be restored with the file of Ld. CIT(A) so that the same could kindly be decided on merit after affording a reasonable opportunity of hearing to the assessee.

The Ld. D.R on the other hand fairly agreed to the contentions put forward before us by the ld. A.R that the scheme could not be availed due to non-payment of tax, nonetheless Form 3 has already been issued.

After hearing the rival contentions and perusing the material on record, we observe that the scheme of Vivad-se-Viswas could not be availed by the assessee due to non-payment of taxes for both the above years whereas the Ld. CIT(A) dismissed the appeals on the basis of Form 3 issued by designated authority under DTVSV Act, 2020 by observing that these appeals deemed to be withdrawn. Under these facts and circumstances, we are of the view that the ends of justice would be met if we restore the issue back to the file of Ld. CIT(A) with a direction to decide the same on merit after affording a reasonable opportunity of hearing to the assessee. Accordingly these

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