2020 (6) TMI 733 - AT - Income Tax

Additions made u/s 40(a)(ia) of the Act for non-deduction of tax at source - Disallowance of amortization of debenture redemption premium - Disallowance of loss arising from settlement of derivative contract - HELD THAT - Since the assessee has opted for Vivad Se Vishwas Scheme, 2020, the appellant would be moving application for withdrawing the present appeals filed before the Tribunal in due course. Since the assessee has already filed the necessary applications before the tax authorities under the above said scheme, we are of the view that no purpose will be served in keeping these appeals pending. Accordingly we dismiss all these appeals of the assessee as withdrawn. We notice that the assessee has stated that he has not received Form no.3, in which the tax amount to be paid by the assessee shall be intimated by the department. Hence the assessee has sought adjournment till the time Form no.3 is received from the department, meaning thereby, the assessee wants to make sure that the tax liability mentioned by him in Form no.1 should get confirmed by the revenue. Under these set of facts, since we have dismissed the appeals, the assessee is given liberty to move appropriate application for recall of the present order in accordance with the law, if the assessee intends to do so.

Summary

Issues:
Challenging orders of Ld CIT(A) on additions made by AO in assessment years 2011-12 to 2014-15, including u/s 40(a)(ia), debenture redemption premium, and loss from derivative contract. Assessee's request for adjournment due to opting for Vivad Se Vishwas Scheme, 2020. Dismissal of appeals by ITAT as withdrawn based on assessee's participation in the scheme.

Analysis:
The appeals before the ITAT challenged the orders of the Ld CIT(A) partially confirming additions made by the AO in various assessment years. The issues under challenge included additions made u/s 40(a)(ia) for non-deduction of tax at source, disallowance of debenture redemption premium amortization, and disallowance of loss from a derivative contract. The assessee opted for the Vivad Se Vishwas Scheme, 2020, and requested an adjournment of the appeals.

The ITAT considered the submissions of both parties and observed that the assessee had filed necessary declarations and undertakings under the Vivad Se Vishwas Act, 2020. The Departmental Representative (D.R) highlighted the requirement for the assessee to withdraw pending appeals after filing Form VSV1 under the scheme. The D.R emphasized that the assessee must furnish a copy of the form along with proof of tax payment to the department.

After due consideration, the ITAT noted that since the assessee had opted for the Vivad Se Vishwas Scheme and had initiated the process of withdrawing appeals, keeping the appeals pending would serve no purpose. Consequently, the ITAT dismissed all appeals of the assessee as withdrawn. The ITAT acknowledged the assessee's concerns regarding the non-receipt of Form no.3 specifying the tax liability, and granted liberty to the assessee to file an appropriate application for recall of the order if necessary.

In conclusion, the ITAT dismissed all appeals of the assessee as withdrawn due to the assessee's participation in the Vivad Se Vishwas Scheme, 2020. The ITAT provided the assessee with the opportunity to seek a recall of the order if required, considering the pending issuance of Form no.3 by the tax authorities.