2022 (1) TMI 1438 - AT - Income Tax

Rectification application u/s 254 - adjudication of appeal on merits as declaration under VSVS withdrawn - assessee/applicant decided not to proceed with the settlement under VSVS and no tax was paid as per Form-3, thus impliedly withdrew its declaration under VSVS - assessee submitted that the assessee wants to defend the appeal on merits, hence, the order 2021 (2) TMI 1381 - ITAT MUMBAI vide which appeals of the assessee were dismissed as withdrawn and appeals of the Revenue were dismissed be recalled. HELD THAT - As the assessee had furnished copy of Form-3 issued under VSVS to substantiate that declaration filed by the assessee has been accepted by the Designated Authority. Subsequently, the assessee decided not to settle the claim under VSVS and contest the additions in appeal before the Tribunal, hence, the amount as specified in Form -3 was not paid. Under VSVS if the amount is not paid as per Form-3, then declaration made in Form-1 is treated as void and deemed never to have been made. Thus, in view of above, the order of Tribunal supra is recalled and the aforesaid appeals are restored to their original number for adjudication on merits.

Summary

Issues involved: Application for recall of order under section 254(2) of the Income Tax Act, 1961 regarding settlement under Vivad Se Vishwas Scheme, 2020.

Summary:
The Miscellaneous Applications were filed by the assessee seeking recall of the order dated 15/02/2021 related to various assessment years. The assessee initially opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020 (VSVS) by filing a declaration which was accepted by the Designated Authority. However, the assessee later decided not to proceed with the settlement under VSVS and did not pay the specified amount as per Form-3, thereby implying withdrawal of the declaration. The assessee expressed the intention to defend the appeal on merits. The Department argued that since the conditions of Form-3 under VSVS were not met, the appeals should be heard on merits.

After hearing submissions from both sides, the Tribunal granted the recall of the order dated 15/02/2021. The appeals of both the Revenue and the assessee were restored to their original numbers for adjudication on merits. The Tribunal directed the Registry to list the appeals before the regular Bench for further proceedings. Consequently, all the five miscellaneous applications filed by the assessee were allowed.

The order was pronounced in the open Court on Friday, the 28th day of January, 2022.