MUTHUSWAMY & CO,CHENNAI vs. ITO WARD-5, TIRUNELVELI

The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)- 1, Madurai in dated 08.11.2019 for the assessment year 2013-14.

The Ld. AR submitted that the assessee filed the appeal belatedly by 22 days and pleaded to condone the delay.

We heard the rival contentions. We find that the assessee was prevented by sufficient cause for filing the appeal belatedly. Therefore, we condone the delay and admit the appeal for adjudication.

The above case was heard through video conferencing. At the time of hearing, learned counsel for the assessee submitted that the assessee wanted to utilize the Direct Taxes ‘Vivad se Vishwas Scheme, 2020’ to settle pending dispute relating to Direct Taxes and in this regard the assessee has filed form No 1 and 2 and awaiting for form No. 3 from the designated authority.

The Bench has considered rival contentions of both sides and after hearing both parties, we find that the assessee has filed form no 1 and 2 and awaiting for form no. 3 from the designated authority. Therefore, once the assessee filed a declaration in Form No.1 along with undertaking and expressed their willingness to settle pending disputes regarding direct taxes, then there is no point in keeping the appeal filed by the assessee. Therefore, we dismiss the appeal filed the assessee, supra, as withdrawn. However, liberty is given to the assessee to restore the appeal, in the event of the Designated Authority, for any reason reject the application filed by the :-3-: ITA No: 455/Chny/2020 assessee under section 4 of the said Act. We, further make it clear that if the assessee has for any reason opted out from the scheme or the applicant under the scheme misrepresent any fact which resulted in rejection of application filed under the scheme, then the provisions of section 4(6) of the Act, shall be applicable to such appeal and in such case, the proceedings and the claims which were withdrawn under section 4 and all the consequences under the Income-tax Act against the declarant assessee shall be deemed to have been revived. We, further make it clear that the assessee should promptly inform the Assessing Officer about their decision to opt out of the scheme or rejection of application by the designated authority to the Assessing Officer, so as to enable to file miscellaneous application to restore the appeals.

In the result, the appeal filed by the assessee is dismissed as withdrawn.