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Income Tax Appellate Tribunal, DELHI BENCH: ‘DB’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH
PER SATBEER SINGH GODARA, JM These assessee’s four appeals 1617/Del/2012; 5311/Del/2011 and 5405/Del/2011 for assessment years 2004-05, 2006-07, 2007-08 and 2008-09 and the Revenue’s cross appeal (for assessment year 2006-07) arise against the Assistant Director of Income Tax (International Taxation), Dehradun’s order(s) dated 26.11.2012, 20.09.2011 involving proceedings under sections 147/143(3)/144(13) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively. The Revenue’s and assessee’s cross-appeals ITA Nos.1138/Del/2012 and 1617/Del/2012 are directed against CIT(A)-II, Dehradun’s order dated 27.12.2011 passed in case no. 509/DDN/2008-09, involving proceedings under section 143(3) of the Act.] 2. Heard both the parties at length. Case files perused.
It emerges at the outset that the assessee has filed its adjournment letter today (20.03.2025) reading as under: 2 | P a g e ; 1617/Del/2012; 5311/Del/2011; 5405/Del/2011 & 1138/Del/2012 “In this regard, it is respectfully submitted before your Honours that the Appellate is contemplating the option to opt for Vivad Se Vishwas Scheme (“VSVS Scheme”) as per Notification No. 103/2024 in the captioned matter and is currently in the process of applying for the same. In lieu of the above, we kindly request that your Honour to hold the issuance of any order and halt further proceedings related to the captioned matter. We trust our request shall be acceded to. We request your office to take the above on record.”
4. That being the case, we invite the learned authorized representative’s attention to the fact that once the assessee is already contemplating for settlement under the Direct Tax Vivad Se Vishwas Scheme, 2024, there is no point in adjourning all these instant five appeals.
5. Learned counsel, however, submits that the assessee is only contemplating for settlement than having filed the application under the above scheme.
6. Be that as it may, we hereby quote hon’ble Madras high court recement decision in TCA No. 372 of 2020, dated 16.10.2020 in M/s. Nannusamy Mohan (HUF), AGS Automobiles Vs. ACIT that even an instance of contemplation for settlement as well, such cases could indeed be dismissed as withdrawn with a rider to be revived afresh as under: “3. The learned counsel for the appellant / assessee, on instructions, submitted that the appellant / assessee intends to avail the benefit of Vivad Se Vishwas Scheme ('VVS Scheme' for brevity) and in this 3 | P a g e ; 1617/Del/2012; 5311/Del/2011; 5405/Del/2011 & 1138/Del/2012 regard, the assessee is taking steps to file the application / declaration in Form No. I.
It may not be necessary for this Court to decide the Substantial Questions of Law framed for consideration on account of certain subsequent developments. The Government of India enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. The Act of the Parliament received the assent of the President on 17th March 2020 and published in the Gazette of India on 17th March 2020.
In terms of the said Act, the assessee has been given an option to put an end to the tax disputes, which may be pending at different levels either before the First Appellate Authority or before the Tribunal or before the High Court or before the Hon'ble Supreme Court of India. Under http://www.judis.nic.in Section 2(j) “disputed tax” has been defined. In terms of Section 3, where a declarant means a person, who files a declaration under Section 4 on or before the last date files a declaration to the designated authority in accordance with the provisions of Section 4 in respect of tax arrears, then, notwithstanding anything contained in the Income Tax Act or any other law for the time being in force, the amount payable by the declarant shall be determined in terms of Section 3(a-c) thereunder.
6. The First Proviso to Section 3 states that in case, where an Appeal or Writ Petition or Special Leave Petition is filed by the Income Tax authority on any issue before the Appellate Forum, the amount payable shall be one-half of the amount in the table stipulated in Section 3 calculated on such issue, in such a manner as may be prescribed. The second proviso deals with the cases, where the matter is before the Commissioner (Appeals) or before the Dispute Resolution Panel. The third proviso deals with cases, where the issue is pending before the Income Tax Appellate Tribunal. The filing of the declaration is as per Section 4 of the Act and the particulars to be furnished are also mentioned in the Sub Sections of Section 4. Section 5 of the Act deals with the time and manner of the payment and Section 6 deals with Immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases. Section 9 of the Act deals with cases, where the Act 3 of 2020 will not be applicable.
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.
4 | P a g e ; 1617/Del/2012; 5311/Del/2011; 5405/Del/2011 & 1138/Del/2012
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 six (6) weeks from the date on which the declaration is filed in the proper form.
With this direction, the Tax Case Appeal stands disposed of with the aforementioned liberty and consequently, the Substantial Questions of Law are left open. No costs.” 7. We accordingly reject the assessee’s foregoing adjournment petition and dismiss all these assessee’s four appeals 498/Del/2013; 1617/Del/2012; 5311/Del/2011 and 5405/Del/2011 as well as the Revenue’s cross-appeal as withdrawn in very terms.
To sum up, the assessee’s four appeals 1617/Del/2012; 5311/Del/2011 and 5405/Del/2011 and Revenue’s appeal ITA No. 1138/Del/2012 are dismissed as withdrawn, in above terms, with liberty to be revived, in case the former’s proposed settlement under the Direct Tax Vivad Se Vishwas Scheme, 2024, does not get accepted for any reason, whatsoever. Ordered accordingly. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 20th March, 2025 Sd/- Sd/- (M. BALAGANESH) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER