2020 (12) TMI 1352 - AT - Income Tax

Avalibility of Vivad Se Vishwas Scheme - HELD THAT - As counsel fairly accepts that they have no objection to the appeal being dismissed as withdrawn as long as their right for revival of the appeal is protected, in the event of some unfortunate reason, the matter being not settled under the above Scheme. DR has no objection to the above. The 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 We dismiss the appeal as withdrawn, subject to the rider that in the unlikely event of matter not being resolved under the above Scheme, the assessee shall have liberty to approach the Tribunal for restoration of its appeal.

Summary

Issues:
1. Appeal against order passed by Deputy Commissioner of Income Tax under sections 143(3) and 144C(3) of the Income Tax Act, 1961.
2. Consideration of "Vivad Se Vishwas" Scheme by the assessee.
3. Dismissal of appeal as withdrawn with the right for revival under certain conditions.

Analysis:

1. The appeal before the Appellate Tribunal ITAT Mumbai was directed against an order issued by the Deputy Commissioner of Income Tax under sections 143(3) and 144C(3) of the Income Tax Act, 1961. The appeal was filed by the assessee challenging the said order.

2. The Authorized Representative for the appellant informed the Tribunal that they were contemplating whether to avail the "Vivad Se Vishwas" Scheme. This scheme, enacted by the Government of India under the Direct Tax Vivad Se Vishwas Act, 2020, aimed to resolve disputed tax matters. The assessee was considering utilizing this scheme to settle the tax disputes pending at various levels.

3. Upon hearing the submissions from both parties, the Tribunal noted the provisions of the Vivad Se Vishwas Act, 2020, and the option it provided to taxpayers to resolve tax disputes. Considering this, the Tribunal allowed the appeal to be dismissed as withdrawn. However, a crucial condition was imposed to protect the assessee's right. The Tribunal stated that in case the matter was not resolved under the Vivad Se Vishwas Scheme, the assessee would retain the liberty to approach the Tribunal for restoration of the appeal. This safeguard ensured that the assessee could reinstate the appeal if the dispute was not settled through the scheme.

4. Consequently, the Tribunal pronounced its order on 15/12/2020, dismissing the appeal as withdrawn but preserving the right of the assessee to seek restoration of the appeal if the matter remained unresolved under the Vivad Se Vishwas Scheme. This decision reflected a balanced approach by the Tribunal, considering the potential resolution of the tax dispute through the scheme while safeguarding the assessee's legal options for appeal restoration if needed.