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Facts
The assessee, Arjun Amla, filed an appeal against an order from the Commissioner of Income Tax (Appeals) for A.Y. 2016-17. During the proceedings, the assessee applied to withdraw the appeal, stating they had opted for the Direct Tax 'Vivad Se Vishwas Scheme 2024'.
Held
Following a precedent set by the Madras High Court, the Tribunal dismissed the appeal as withdrawn. However, it granted the assessee liberty to seek restoration of the appeal if their declaration under the 'Vivad Se Vishwas Scheme 2024' is not accepted by the Revenue.
Key Issues
Whether an appeal should be dismissed as withdrawn when the assessee opts for the Vivad Se Vishwas Scheme, and the conditions under which such an appeal can be restored.
Sections Cited
Section 250 of the Income Tax Act, 1961, Direct Tax Vivad Se Vishwas Scheme, 2024, Vivad Se Vishwas Scheme Act, 2024, Vivad Se Vishwas Scheme, 2020, Section 4 of Vivad Se Vishwas Act, Rule 5
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.
Before: SH. UDAYAN DAS GUPTA & SH. BRAJESH KUMAR SINGH
ORDER Per: Brajesh Kumar Singh, AM: The instant appeal of the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, [in brevity the ‘CIT (A)’], order passed u/s 250 of the Income Tax Act 1961, for A.Y. 2016-17 dated 24.02.2025.
During the proceedings, none appeared on the behalf of the Assessee but submitted application dated 08.05.2025 physically, with the request for withdrawal of the appeal on the ground that the Assessee has opted to take benefit under the Direct Tax 'Vivad Se Vishwas Scheme 2024 and sought permission from the Bench to withdraw the aforementioned appeal. Necessary certificates in Form No.2 under Rule 5 have been issued to him which are placed on record.
Since, the assessee had already filed an application under Direct Tax "Vivad Se Viswas Scheme Act 2024", 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 expeditiously 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 disposed aforementioned liberty 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 assessee 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 the 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.