Facts of the Case

The assessee, Mr. Rajendra Kumar Kesari, 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 provisions of the Income-tax Act, 1961 for the relevant assessment year.

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

Consequently, the assessee submitted that he did not wish to pursue the appeal further and requested that the same be treated as withdrawn.

Issues Involved

Whether the Tribunal should adjudicate the appeal on merits or dismiss it as withdrawn when the assessee has opted for and been granted settlement under the Vivad Se Vishwas Scheme, 2020.

Petitioner’s (Assessee’s) Arguments

  • The assessee had applied under the Vivad Se Vishwas Scheme, 2020 for settlement of the pending dispute.
  • The application had been accepted by the tax authorities.
  • Form No. 3 had already been issued by the designated authority.
  • In view of the settlement, the assessee requested permission to withdraw the appeal pending before the Tribunal.

Supporting documents evidencing acceptance under the scheme were also placed on record.

Respondent’s (Department’s) Arguments

The Departmental Representative did not oppose the request for 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.
  • As the dispute stood resolved under the scheme, continuation of appellate proceedings was unnecessary.

Important Clarification

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

Link to download the order –

https://itat.gov.in/public/files/upload/1614249302-132%20Rajendra%20Kumar%20Kesari.pdf

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