SHREE LAXMI ROADLINES,BELGAUM vs. PR.COMMISSIONER OF INCOME TAX , HUBLI

Facts

The assessee filed an appeal against an order passed by the Pr.CIT under Section 263 of the Income Tax Act, 1961. During the hearing, the assessee informed the tribunal of its intention to settle the tax dispute under the ‘Direct Tax Vivad Se Vishwas Scheme (DTVSV) 2024’ and subsequently filed an application for withdrawal of the appeal.

Held

The Income Tax Appellate Tribunal observed that since the assessee had opted for the DTVSV 2024 and sought to withdraw the appeal, no purpose would be served by keeping the appeal pending. Consequently, the tribunal dismissed the appeal as withdrawn, while granting the assessee liberty to move an application under Section 254(2) of the Act to recall the order in accordance with law.

Key Issues

Whether an appeal should be dismissed as withdrawn when the assessee opts for the 'Direct Tax Vivad Se Vishwas Scheme' and files an application for withdrawal of the appeal.