INCOME TAX OFFICER 23(1)(3), MUMBAI vs. SMT. BHAGWANTI PARWANI, MUMBAI

This appeal in A.Y.2014-15 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-32, Mumbai in appeal No.CIT(A)-32/ITO-23(1)(3)/IT-474/2016-17 dated 22/01/2018 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 29/12/2016 by the ld. Income Tax Officer 23(1)(3), Mumbai (hereinafter referred to as ld. AO).

We find that revenue has filed grounds contesting the deletion of addition of Rs.1,62,83,323/- made on account of transactions on sale of shares and Rs.81,417/- in respect of accommodation transaction thereon. We find that assessee vide her letter filed before us on 03/12/2020 had submitted that she intends to avail opportunity available under „Vivad Se Vishwas Scheme-2020‟ to settle the disputes arising out of this appeal.

We have heard rival submissions and perused the materials available on record. Since, the assessee intends to file an application under direct tax “Vivad Se Viswas Scheme Act 2020”, there is no need to keep the 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:-

In the light of the above, we direct the appellant/ assessee to file the Form No.I on or before 20.11.2020 and the competent authority shall process the application/ declaration in accordance with the Act and pass appropriate orders as expeditiously as possible preferably within a period of 6 (6) weeks from the date on which the declaration is filed in the proper form. 9. With this declaration, the Tax Case appeal stands disposed of with the aforementioned liberty and Consequently the Substantial Question of Law are left upon. No costs.”

In the 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 to be filed by the assessee under direct tax “Vivad Se Viswas Scheme-2020”. In other words if the assessee‟s declaration to be 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 a liberty to get them recalled in the eventuality of assessee‟s declaration not getting accepted by the Revenue. 6. In the result, appeal of the revenue is dismissed.