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Facts
The Revenue's appeal against the order dated 11.03.2020 for AY 2016-2017 was filed. The assessee submitted that the tax dispute was settled under the VIVAD SE VISHWAS SCHEME, 2024. The assessee filed a revised declaration in Form-1 and the Designated Authority issued revised Form-2.
Held
The tribunal noted that the Competent Authority issued Form-2 determining the tax liability under the dispute as Rs.0 and a refund of Rs.40,44,239/-. Since the dispute was settled under VIVAD SE VISHWAS SCHEME and there was no outstanding liability but a refund, the appeal became infructuous.
Key Issues
Whether the appeal is maintainable when the tax dispute has been settled under the Vivad se Vishwas Scheme, resulting in a refund to the assessee.
Sections Cited
VIVAD SE VISHWAS SCHEME, 2024, Section 91 of the Finance (No.2) Act, 2024, Section 92 of the Finance (No. 2) Act, 2024
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Hyderabad ‘B’ Bench, Hyderabad
Before: SHRI VIJAY PAL RAO & SHRI MANJUNATHA G.
PER VIJAY PAL RAO, VICE PRESIDENT :
This appeal by the Revenue is directed against the Order dated 11.03.2020 of the learned Commissioner of Income Tax-(Appeals)-4, Hyderabad, for the assessment year 2016-2017.
2 ITA.No.113/Hyd./2021 2. At the time of hearing, learned Counsel for the Assessee has submitted that the assessee has settled the tax dispute involved in this appeal of the Revenue under VIVAD SE VISHWAS SCHEME, 2024. The learned Authorised Representative of the Assessee has pointed out that earlier there was some dispute with the tax liability however, the assessee then filed a revised declaration in Form-1 on 31.01.2025 and the Designated Authority has issued revised Form-2 on 03.02.2026. Thus, the learned Authorised Representative of the Assessee has submitted that once the dispute involved in the present appeal of the Revenue is settled under VIVAD SE VISHWAS SCHEME and the tax liability is determined by the Authority as refund to the assessee, then, the present appeal of the Revenue is not maintainable and liable to be dismissed as settled.
The learned CIT-DR has not disputed the settlement of the dispute under VIVAD SE VISHWAS SCHEME and issuance of Form-2 by the Designated Authority on 03.02.2026.
3 ITA.No.113/Hyd./2021 4. Having considered the submissions of the learned Authorised Representative of the Assessee as well as of the learned DR and careful perusal of the record, at the outset, we note that the Competent Authority has issued Form-2 dated 05.01.2026 as under:
4 ITA.No.113/Hyd./2021 4.1. Thus, initially the outstanding liability was determined at Rs.11,15,707/-. However, thereafter the Authority has issued another Form-2 dated 03.02.2026 whereby the tax liability under the dispute is determined at Rs.0/- and the refund is determined at Rs.40,44,239/- as under:
5 ITA.No.113/Hyd./2021 5. Since the dispute involved in the present appeal of the Revenue is to be settled under VIVAD SE VISHWAS SCHEME, 2024 and there is no outstanding liability against the assessee but there is a refund determined by the Authority therefore, the present appeal of the Revenue has become infructuous and dismissed being withdrawn as settled under VIVAD SE VISHWAS SCHEME, 2024. However, the liberty is given to the parties in case any further development regarding the settlement of the dispute under VIVAD SE VISHWAS SCHEME, 2024 takes place to revive this appeal for determination of the dispute on merits.
In the result, appeal of the Revenue is dismissed as withdrawn. Order pronounced in the open Court at the conclusion of the hearing i.e., on 17.02.2026.
Sd/- Sd/- [MANJUNATHA G.] [VIJAY PAL RAO] ACCOUNTANT MEMBER VICE PRESIDENT Hyderabad, Dated 17th February, 2026. VBP 6 ITA.No.113/Hyd./2021