Facts of the Case

The assessee, Mr. Krishna Kumar Chaurasia, had filed an appeal before the Income Tax Appellate Tribunal (ITAT), Allahabad Bench, challenging the order of the Commissioner of Income Tax (Appeals) passed under the Income-tax Act, 1961 for the relevant assessment year.

During the pendency of the appeal, the assessee opted to resolve the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020 (VSVS) introduced for settlement of pending tax disputes. The declaration submitted under the scheme was accepted by the designated authority, and Form No. 3 was issued specifying the amount payable for settlement.

Subsequently, the assessee submitted a request to withdraw the appeal pending before the Tribunal in view of the settlement.

Issues Involved

Whether the Tribunal should adjudicate the appeal on merits or dismiss it as withdrawn after the assessee has opted for and been granted settlement under the Vivad Se Vishwas Scheme, 2020.

 Petitioner’s (Assessee’s) Arguments

  • The assessee had filed a declaration under the Vivad Se Vishwas Scheme, 2020 to settle the pending dispute.
  • The declaration had been accepted by the tax authorities.
  • Form No. 3 had been issued by the designated authority determining the payable amount.
  • In view of the settlement, the assessee did not wish to pursue the appeal and requested that the appeal be treated as withdrawn.

Respondent’s (Department’s) Arguments

The Departmental Representative did not object to the withdrawal of the appeal, acknowledging that the dispute 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 declaration.
  • Since the dispute stood resolved under the scheme, continuation of appellate proceedings would serve no useful purpose.

Important Clarification

The dismissal of the appeal was procedural following settlement under a statutory dispute resolution mechanism and does not amount to adjudication on the merits of the issues involved in the appeal.

Link to download the order –https://itat.gov.in/public/files/upload/1614249430-146%20Krishna%20Kumar%20Chaurasia.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.