Facts of the Case

The assessee, Satya Narayan Nagda, filed an appeal before the Income Tax Appellate Tribunal, Jodhpur Bench, against the order of the CIT(A)-2, Udaipur dated 30.04.2024 for Assessment Year 2011-12. During the pendency of the appeal, the assessee filed a written application dated 17.12.2025 stating that he had opted for settlement of the disputed demand under the Direct Tax Vivad Se Vishwas Scheme, 2024. The assessee furnished a copy of the certificate issued in Form No. 2 evidencing declaration under Section 91 of the Finance (No.2) Act, 2024, along with acknowledgment of Form No. 1 dated 30.12.2024. The Departmental Representative raised no objection to the request for withdrawal of the appeal.

Issues Involved

Whether the appeal pending before the Tribunal survives for adjudication once the assessee opts for settlement under the Direct Tax Vivad Se Vishwas Scheme, 2024 and obtains acknowledgment from the designated authority.

Petitioner’s Arguments

The assessee submitted that having opted for settlement under the Direct Tax Vivad Se Vishwas Scheme, 2024 and having filed the requisite declaration forms which were duly acknowledged by the designated authority, he was no longer interested in pursuing the appeal on merits and therefore requested permission to withdraw the appeal.

Respondent’s Arguments

The Revenue, through the Departmental Representative, stated that it had no objection to the withdrawal of the appeal by the assessee in view of the settlement opted under the Direct Tax Vivad Se Vishwas Scheme, 2024.

Court Order / Findings

The ITAT Jodhpur observed that the assessee had admittedly opted for the Direct Tax Vivad Se Vishwas Scheme, 2024 and had furnished the necessary declaration and certificate evidencing settlement of the disputed demand. The Tribunal noted that once the assessee opts for settlement under the scheme, the pending appeal becomes infructuous. Since the Department had no objection to the withdrawal, the Tribunal permitted the assessee to withdraw the appeal and dismissed the same as withdrawn.

Important Clarification

The Tribunal clarified that where an assessee opts for settlement of disputed tax demand under the Direct Tax Vivad Se Vishwas Scheme, 2024 and the declaration is acknowledged by the designated authority, any pending appeal relating to such dispute becomes infructuous and is liable to be dismissed as withdrawn.

Final Outcome

The appeal filed by the assessee for Assessment Year 2011-12 was dismissed as withdrawn. The dispute stood settled under the Direct Tax Vivad Se Vishwas Scheme, 2024.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1768993799_SATYANARAYANNAGDAVILLAGEKANAKHEDAVS.DCITUDAIPURUDAIPUR.pdf

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