DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-08, JHANDEWALAN EXTENSION vs. UNIVERSITY OF PETROLEUM AND ENERGY STUDIES, OKHLA INDUSTRIAL ESTATE

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ITA 3940/DEL/2023Status: DisposedITAT Delhi23 February 2025Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI S.RIFAUR RAHMAN (Accountant Member)4 pages

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal, following the decision of the Hon'ble Madras High Court in Nannusamy Mohan (HUF) vs. ACIT, decided to dispose of the appeal. The Tribunal noted that the assessee had availed the Vivad Se Viswas Scheme, 2024, and submitted the relevant forms. In light of this, the Tribunal granted liberty to the assessee to seek restoration of the appeal if the declaration filed under the Vivad Se Viswas Scheme is not accepted by the Revenue. The Tribunal reasoned that keeping the appeal pending would be unnecessary given the assessee's intention to resolve the dispute through the scheme. The operative direction was to dismiss the appeal with the liberty to recall it under specific circumstances. The Tribunal did not decide on the merits of the original assessment or appeal.

What were the facts?

The Department of Revenue (Appellant) filed an appeal against the order dated 26.04.2016 of the CIT(Appeals)-4, New Delhi, which arose from an order dated 27.03.2015 passed by the DCIT, Circle-10(1), New Delhi, under Section 143(3) of the Income-Tax Act, 1961, for the assessment year 2012-13. The respondent assessee, M/s. Gogoal Hydro Pvt. Ltd., submitted an application on 04.02.2025 stating that it had availed the Vivad Se Viswas Scheme, 2024, and submitted the requisite forms. The assessee also provided supporting evidence. The Tribunal noted that the assessee was not represented at the hearing.

What were the issues?

1. Whether the appeal filed by the Department should be dismissed in light of the assessee's availing of the Vivad Se Viswas Scheme, 2024? Assessee's Contention: The assessee has availed the Vivad Se Viswas Scheme, 2024, and submitted the necessary forms, thereby indicating an intention to settle the dispute under the scheme. Therefore, the appeal should not be kept pending. Department's Contention: The judgment does not record any specific contention from the Department regarding the Vivad Se Viswas Scheme. However, by filing the appeal, the Department is seeking to uphold the assessment order.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “C”: NEW DELHI

Before: SHRI PRADIP KUMAR KEDIA & SHRI VIMAL KUMAR

For Respondent: Shri Jitender Singh, SR. DR

Hearing: 21.03.2025

PER VIMAL KUMAR, JUDICIAL MEMBER:

The appeal filed by the Department of Revenue is against order dated 26.04.2016 of the Learned Commissioner of Income- Tax (Appeals)-4, New Delhi (hereinafter referred as ‘Ld. CIT(Appeals)’) arising out of order dated 27.03.2015 under Sections 143(3) of the Income-Tax Act, 1961 (hereinafter referred as ‘the Act’) by DCIT, Circle-10(1), New Delhi (hereinafter referred as the ‘Assessing Officer'), New Delhi for the assessment years 2012-13.

The respondent assessee vide application filed on 04.02.2025 has stated that respondent/assessee has availed the Vivad Se Viswas Scheme, 2024 and submitted Form nos. 1 and 2.

The respondent assessee has also enclosed the evidences in that regard before us. In regard to “Vivad Se Viswas Scheme Act 2024”. So, 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 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 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 appellant 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 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 21/03/2025.

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