Facts of the Case

The assessee, Mr. Pravin Kumar, had filed multiple appeals before the Income Tax Appellate Tribunal (ITAT), Allahabad Bench, challenging the orders of the Commissioner of Income Tax (Appeals) for various assessment years under the Income-tax Act, 1961.

During the pendency of these appeals, the assessee opted to resolve the disputes under the Direct Tax Vivad Se Vishwas Scheme, 2020 (VSVS), which was introduced to settle pending tax litigation. The declarations filed under the scheme were accepted by the designated authority, and Form No. 3 was issued determining the amount payable for settlement.

Subsequently, the assessee sought permission to withdraw all the pending appeals before the Tribunal.

Issues Involved

Whether multiple appeals pending before the Tribunal should be adjudicated on merits or dismissed as withdrawn when the assessee has opted for settlement under the Vivad Se Vishwas Scheme, 2020 and the declarations have been accepted.

Petitioner’s (Assessee’s) Arguments

  • The assessee had filed declarations under the Vivad Se Vishwas Scheme, 2020 for settlement of the disputes.
  • The designated authority had accepted the declarations.
  • Form No. 3 had been issued specifying the amount payable.
  • In view of the settlement, the assessee did not wish to pursue the appeals and requested that all pending appeals be treated as withdrawn.

Relevant documentary evidence confirming acceptance under the scheme was placed on record.

Respondent’s (Department’s) Arguments

The Departmental Representative did not object to the withdrawal of the appeals, acknowledging that the disputes had been settled under the statutory scheme.

Court Order / Findings

  • The assessee had opted for settlement under the Vivad Se Vishwas Scheme, 2020.
  • The designated authority had issued Form No. 3 confirming acceptance of the declarations.
  • Since the disputes stood resolved under the scheme, continuation of appellate proceedings would serve no useful purpose.

Important Clarification

The dismissal of the appeals was procedural due to settlement under a statutory dispute resolution mechanism and does not constitute adjudication on the merits of the issues involved.

Link to download the order –

https://itat.gov.in/public/files/upload/1610020087-243-249%20Pravin%20Kumar%20VSVS.pdf

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