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Facts
Appeals were filed by both the revenue (for AYs 2003-04 and 2004-05) and the assessee (for AY 2003-04) against assessment orders that involved additions. During the hearing, the assessee informed the Tribunal of its intention to avail the Vivad Se Vishwas Scheme, 2024, and subsequently filed a declaration and undertaking under the scheme.
Held
The Tribunal noted the assessee's bona fide intention to settle the tax disputes through the Vivad Se Vishwas Scheme, 2024. Citing a similar approach by the Madras High Court, the Tribunal dismissed all pending appeals (both by the revenue and the assessee) with the liberty for the assessee to seek restoration of the appeals if its declaration under the scheme is not accepted by the Revenue.
Key Issues
Whether appeals pending before the Income Tax Appellate Tribunal should be dismissed, with liberty for restoration, when the assessee opts to settle tax disputes by filing a declaration under the Vivad Se Vishwas Scheme, 2024.
Sections Cited
Income-tax Act, 1961, Section 143(3) of the Income-tax Act, 1961, Vivad Se Vishwas Scheme, 2024, The Direct Tax Vivad Se Vishwas Scheme (DTVSV) 2024, Section 91(1) of DTVSV 2024, Section 91(4) of DTVSV 2024, Section 4 of 'Vivad se Vishwas Scheme-2020'
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “I”: NEW DELHI
Before: SHRI M. BALAGANESH & SHRI VIMAL KUMARShri Tapas Ram Mishra, Adv Shri Neeraj Kumar Sharma, AR Shri Sahil Malhotra, AR Shri Rajesh Kumar, CIT DR Shri Gaurav Bansal, Sr. DR Shri Kanv Bali, Sr. DR
O R D E R PER M. BALAGANESH, A. M.: These appeals in 3643/Del/2010 filed by 1. the revenue for AYs 2003-04 and 2004-05 and 4022/Del/2010 for AY 2003-04 filed by the assessee, arises out of the order of the Commissioner of Income Tax (Appeals)-XX, New Delhi [hereinafter referred to as „ld. CIT(A)‟, in short] in Appeal No. 96/2007-08/CIT(A)-XX dated 29.06.2010 for AY 2003-04 and dated 13.04.2011 for AY 2004-05 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) dated 29.03.2006 and 26.12.2006 for by the Assessing Officer.
Identical issues are involved in all these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience.
These appeals were heard on merits of the additions made in the assessment elaborately. But before the passing of the orders, the assessee filed a letter dated 16.10.24 before us stating that it would be availing the Vivad Se Vishwas Scheme, 2024 introduced by the Statute to settle the tax disputes prevailing in these years. Accordingly, vide letter dated 16.10.24, the assessee made a prayer to this Bench not to pronounce the orders so as to enable the assessee to avail the Vivad Se Vishwas Scheme, 2024. We find that this request of the assessee to be fair keeping in mind the intention of the Government of India to resolve the various direct tax disputes pending in various appellate forums and courts by availing settlement scheme provided in Vivad Se Vishwas Scheme 2024.
True to the request of the assessee, we find that the assessee had proved its bonafide intention by availing the Vivad Se Vishwas Scheme 2024 on 17.10.24 by filing a declaration in Form 1 u/s 91(1) and an undertaking u/s 91(4) of The Direct Tax Vivad Se Vishwas Scheme (DTVSV) 2024 on 16.10.24 for Asst Years 2003-04 and 2004-05. The assessee 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 these appeals 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.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.
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.”