2020 (12) TMI 1345 - AT - Income Tax

Vivad Se Vishwas Act, 2020 - HELD THAT - Government of India enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act No. 3 of 2020) to provide for resolution of disputed tax and for matter connected therewith or incidental thereto. The Act of the Parliament received the assent of the President on 17.03.2020 and published in the Gazette of India on 17.03.2020. In terms of the said Act, the assessee has been given an option to put an end to the tax disputes, which may be pending at different levels either before the First Appellate Authority or before the Tribunal or before the High Court or before the Supreme Court of India. We dismiss these appeals as withdrawn, subject to the rider that in the unlikely event of matter not being resolved under the above Scheme, the assessee as well as Revenue shall have liberty to approach the Tribunal for restoration of the appeal for AY 2012-13 and assessee for AY 2013-14.

Summary

Issues Involved:
Cross-appeals by assessee and Revenue for AY 2012-13, appeal by assessee for AY 2013-14 against CIT(A) order; Settlement under Vivad Se Vishwas Act, 2020; Dismissal of appeals as withdrawn with right for revival protected.

Analysis:

1. Cross-Appeals & Settlement under Vivad Se Vishwas Act:
The judgment pertains to cross-appeals by the assessee and the Revenue for the assessment year (AY) 2012-13, along with an appeal by the assessee for AY 2013-14 against the order of the Commissioner of Income Tax (Appeals) -57, Mumbai. The assessee proceeded to settle under the Vivad Se Vishwas Act, 2020, filing Form 1 & 2 on 16.09.2020 and awaiting Form 3 from the Designated Authority. The counsel for the assessee accepted the appeals being dismissed as withdrawn, ensuring the right for revival is protected if the matter is not resolved under the said Scheme. The Revenue also had no objection to this course of action.

2. Direct Tax Vivad Se Vishwas Act, 2020:
The Government of India enacted the Direct Tax Vivad Se Vishwas Act, 2020, to provide for the resolution of disputed tax matters. The Act allows taxpayers to settle disputes pending at various levels, including before the First Appellate Authority, Tribunal, High Court, or Supreme Court of India. In light of this Act, the Tribunal dismissed the appeals as withdrawn, with a provision that both the assessee and the Revenue can approach the Tribunal for restoration of the appeal for AY 2012-13 and the assessee for AY 2013-14 if the matter is not resolved under the Scheme.

3. Dismissal of Appeals with Right for Revival:
After hearing the rival submissions and examining the relevant materials on record, the Tribunal decided to dismiss the appeals as withdrawn, subject to the condition that in case the matter is not resolved under the Vivad Se Vishwas Scheme, both the assessee and the Revenue retain the liberty to approach the Tribunal for restoration of the appeals. This decision was pronounced in the open Court on 10/12/2020, ensuring that the rights of both parties are safeguarded in the event of non-resolution under the Scheme.

This comprehensive analysis covers the issues involved in the judgment, detailing the settlement under the Vivad Se Vishwas Act, 2020, the provisions of the Act, and the dismissal of appeals with the right for revival protected, ensuring a fair and transparent legal process for all parties concerned.