Loading judgment…
Facts
The assessee filed an appeal against an order from the National Faceless Appeal Centre for Assessment Year 2017-18. During the appeal hearing, the assessee requested to withdraw the appeal, stating they had opted for the Direct Tax Vivad se Vishwas Scheme, 2024 and had received Form No.3 under the scheme.
Held
The Income Tax Appellate Tribunal dismissed the appeal as withdrawn, acknowledging the assessee's decision to opt for the Vivad se Vishwas Scheme. The Tribunal granted the assessee liberty to apply for restoration of the appeal if their declaration under the scheme is not accepted by the Revenue, aligning with a precedent set by the Madras High Court.
Key Issues
Whether an appeal should be dismissed as withdrawn when the assessee opts for the Direct Tax Vivad se Vishwas Scheme, 2024, and the conditions under which such an appeal can be restored if the scheme declaration is unsuccessful.
Sections Cited
Direct Tax Vivad se Vishwas Scheme Act, 2024, Section 4
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, ‘A’: NEW DELHI
Before: SHRI VIMAL KUMAR & SHRI BRAJESH KUMAR SINGH
ORDER PER BRAJESH KUMAR SINGH, AM,
This appeal by the assessee is directed against the order of National Faceless Appeal Centre, Delhi, dated 19.08.2024 pertaining to Assessment Year 2017-18.
When this appeal is called for hearing, ld. Counsel for the assessee requested for withdrawal of the appeal on the ground that the assessee has opted for the Direct Tax Vivad se Vishwas Scheme, 2024 for the relevant assessment year 2017-18 and submitted that assessee has also received Form No.3 with respect to such scheme.
The assessee/appellant had also enclosed the evidence in that regard before us. Since, the assessee had already filed an application under Direct Tax "Vivad Se Viswas Scheme Act 2024", there is no need to keep appeal pending before us in view of the decision of Hon'ble Madras High Court in the case of Nannusamy Mohan (HUF) vs. ACIT in T.C.A.
No.372 of 2020 dated 16.10.2020, wherein the Hon'ble High Court after considering the intention of the assessee to avail the benefit of Vivad se Vishwas Scheme 2020' (VSV scheme), had dismissed the appeal by observing in Para 7 to 9 as under:-
"7. As observed, the assessee is given liberty to restore this appeal in the event the ultimate decision to be taken on the declaration to be filed by the assessee under Section 4 of the said Act is not in favour of the assessee. If such a prayer is made, the Registry shall entertain the prayer without insisting upon any application to be filed for condonation of delay in restoration of the appeal and on such request made by the assessee by filing a Miscellaneous Petition for Restoration, the Registry shall place such petition before the Division Bench for orders.
In the light of the above, we direct the appellant/ assessee to file the Form No. 1 on or before 20.11.2020 and the competent authority shall process the application/ declaration in accordance with the Act and pass appropriate orders expeditiously preferably within a period of 6 (6) weeks from the date on which the declaration is filed in the proper form.
With this declaration, the Tax Case appeal disposed aforementioned liberty Consequently the Substantial Question of Law are left upon. No costs."
In light of the view taken by Hon'ble Madras High Court cited (supra), we also give liberty to the assessee to get the appeal restored in the event that the assessee does not succeed on the declaration filed by the assessee under Direct Tax "Vivad Se Viswas Scheme-2024". In other words, if the assessee's declaration filed is not accepted by the Revenue for any reason whatsoever, the assessee can make a prayer before the Bench for recalling of the order by filing a miscellaneous application for restoration of appeal. The Registry will place such petition before the Bench concerned.
In view of the aforesaid observations, we dismiss the appeal with liberty to get them recalled in the eventuality of assessee’s declaration not getting accepted by the Revenue.
In the result, the appeal of the assessee is dismissed as withdrawn.
Order pronounced in the open court on 24th March, 2025.