Facts of the Case

The appellant/assessee, Actis Advisers Pvt. Ltd., filed an application seeking permission to withdraw the present appeal. The request was made on the ground that the assessee had initiated steps to resolve the tax dispute under the provisions of the Direct Tax Vivad Se Vishwas Act, 2020.

It was further submitted that the dispute had been settled not only in the present appeal but also in the corresponding appeal filed by the Revenue (ITA No. 425/2013). 

Issues Involved

  1. Whether the appellant should be permitted to withdraw the pending appeal in light of opting for dispute resolution under the Direct Tax Vivad Se Vishwas Act, 2020.
  2. Whether liberty should be granted to the parties to approach the Court in case of non-issuance of the required certificate by the designated authority.

 Petitioner’s Arguments (Assessee)

  • The appellant had opted for settlement under the Direct Tax Vivad Se Vishwas Act, 2020.
  • The dispute involved in the present appeal and the related Revenue appeal had already been resolved.
  • Accordingly, the appellant sought permission to withdraw the appeal.

Respondent’s Arguments (Revenue)

  • The Revenue did not raise objections to the withdrawal request, subject to compliance with the statutory procedure under the Act.

 Court’s Findings / Order

  • The Delhi High Court allowed the application for withdrawal of the appeal.
  • The Court granted liberty to both parties to approach the Court if the designated authority fails to issue the certificate in the prescribed Form-5.
  • Consequently, the appeal was disposed of as withdrawn.
  • The Court also directed that the present order be placed in the file of the connected Revenue appeal (ITA No. 425/2013).

Important Clarification

The Court safeguarded the rights of both parties by allowing them to revive the matter in case the settlement process under the Direct Tax Vivad Se Vishwas Act, 2020 does not culminate in issuance of the prescribed certificate (Form-5). This ensures procedural fairness and prevents prejudice to either party.

Sections  Involved

  • Direct Tax Vivad Se Vishwas Act, 2020
    • Provisions relating to dispute resolution and issuance of certificate (Form-5)

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2021:DHC:4503-DB/RAS26022021ITA2172013_161018.pdf

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