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Facts
The assessee's appeal against an ex-parte assessment order under Section 144 was dismissed by the CIT(A) because the assessee had opted for the Vivad se Vishwas Scheme (VSVS), 2020. Despite this, the assessee filed a further appeal before the ITAT, raising doubts about the actual payment under the VSVS.
Held
The ITAT remanded the case back to the Assessing Officer to verify if the assessee had actually paid the taxes under the VSVS. If not, the AO was directed to frame a fresh assessment order on merits after giving the assessee an opportunity to submit details and documents.
Key Issues
The key legal issue was whether the assessee had genuinely complied with the Vivad se Vishwas Scheme by paying the determined tax amount, thereby rendering the appeal infructuous, or if a de-novo assessment on merits was required.
Sections Cited
Section 144, Section 4(2) of Direct Tax Vivad Se Vishwas Act, 2020, Section 5(1) of Direct Tax Vivad Se Vishwas Act, 2020
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC”
Before: DR. ARJUN LAL SAINI
ORDER Per, Dr. Arjun Lal Saini, Accountant Member: The present appeal has been filed by the Assessee, against the order passed by the Learned Commissioner of Income Tax (Appeal)/Addl/JCIT(A)-2, [hereinafter referred to as “CIT(A)”] dated 10.10.2025 arising in the matter of assessment order passed u/s. 144 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2017-18.
When this appeal was called, for hearing, none appeared on behalf of the assessee despite of the fact that notices were served on the assessee on the address provided in Form No. 36. It means, the assessee is not interested in prosecuting this A.Y. 2017-18 Yograjsinh G. Jadeja appeal. However, ld. D.R. submitted that the assessment order passed by the A.O. is ex-parte order, u/s. 144 of the Act and ld. CIT(A) has dismissed the appeal of the assessee, as the assessee adopted the vivad se vishwas,(VSV) scheme. Therefore, now this appeal becomes infructuous. However, ld. D.R. submitted that appeal of the assessee should be restored back to the file of the A.O. to examine, this fact, whether assessee has paid the tax amount in the VSV, 2020 Scheme, as the assessee filed further appeal before the Tribunal, therefore it raises doubt that assessee has not paid the taxes in Vivad -Se-Vishwas scheme. If the assessee did not pay the tax amount in the VSV Scheme, 2020, then the A.O. may frame the de-novo assessment, on merit, based on the documents and evidences submitted by the assessee before the ld. A.O.
I have heard ld. D.R. for the Revenue and noted that the A.O. has passed ex- parte order u/s. 144 of the Act, as none appeared before the A.O. nor any document and evidences were submitted before the A.O. during the assessment proceedings. On appeal, ld. CIT(A) noted that assessee adopted Vivad- Se- Vishwas scheme,(VSV) Scheme, therefore, ld. CIT(A) has dismissed the appeal of the assessee, observing as under:
“3.1 have carefully considered the facts of the case, the grounds of appeal
, and the records available. It is noted that the appellant has opted for the Vivad se Vishwas Scheme, 2020 (VSVS 2020) and has duly filed Form Nos. 1 and 2. The Designated Authority has subsequently issued the certificate in Form No. 3 under Section 5(1) of the Act dated 01-01-2021, determining the amount payable under the scheme. 3.1 As per the provisions of Section 4(2) of the Direct Tax Vivad Se Vishwas Act, 2020, "Upon the filing of the declaration, any appeal pending before the Income-tax Appellate Tribunal or the Commissioner (Appeals), in respect of the disputed income or disputed interest or disputed penalty or disputed fee and tax arrear shall be deemed to have been withdrawn from the date on which a certificate under sub-section (1) of section 5 is issued by the designated authority."
3.2 In view of the above statutory provision, once the certificate in Form No. 3 has been issued, the present appeal is deemed to have been withdrawn and is accordingly dismissed as withdrawn as per the provision of the section 4(2) of the Direct Tax Vivad Se Vishwas Act, 2020. 4. In result, the appeal is dismissed.”
I have gone through the order of the ld. CIT(A) and noted that ld. CIT(A) has dismissed the appeal of the assessee, as deemed to have withdrawn, stating that the assessee had opted the VSV Scheme. Despite of this fact, the assessee has filed the appeal before this Tribunal, for adjudication, on merit. Therefore, I noted that assessee might have not paid the taxes under the VSV Scheme, therefore I remit this issue back to the file of the A.O. to examine the fact whether the assessee has really opted the VSV Scheme and paid the due taxes under the VSV Scheme or not. If the assessee, had not paid the taxes under the VSV Scheme, 2020 and assessee had just obtained Form No. 3 determining the amount of tax payable under the VSV Scheme Act, 2020 and did not pay the taxes, actually, then in that circumstances, the A.O. is directed to issue the notice to the assessee for required details and documents and a fresh assessment order, on merit, should be framed in accordance with law.
In the result, the appeal of the assessee is allowed for statistical purposes in above terms. Order is pronounced in the open court on 12/01/2026.
Sd/- (DR. A. L. SAINI) ACCOUNTANT MEMBER राजकोट/Rajkot िदनांक/ Date: 12/01/2026