2022 (4) TMI 318 - AT - Income Tax

Dismissal of appeal as assessee opted for Vivad Se Vishwas Scheme - HELD THAT - We find the Ld. CIT(A) has erroneously dismissed the above three appeals on the ground that the assessee has opted for the Vivad Se Vishwas Schme and the PCIT, Dehradun has issued Form No.5 after the due taxes were paid. However, according to the assessee, the assessee has not opted for the Vivad Se Vishwas Scheme. Since the Ld. CIT(A) has erroneously dismissed the appeals of the assessee without deciding the appeals on merit, therefore, we deem it proper to restore the above three appeals to the file of the ld. CIT(A) with a direction to decide the appeals on merit. Needless to say that the Ld. CIT(A) shall decide the issue as per fact and law after giving due opportunity of being heard to the assessee. The grounds raised by the assessee are accordingly allowed.

Summary

Issues:
Challenging dismissal of appeals by CIT(A) based on erroneous presumption of opting for Vivad se Vishwas Scheme.

Analysis:
The judgment by the Appellate Tribunal ITAT Dehradun pertains to three appeals filed by the assessee against separate orders of the National Faceless Appeal Centre for different assessment years. The appeals were heard together as identical grounds were raised. The assessee challenged the orders of the CIT(A) dismissing the appeals on the basis of mistakenly presuming the assessee had opted for the Vivad se Vishwas Scheme.

The counsel for the assessee contended that the CIT(A) had erroneously dismissed the appeals assuming the assessee had opted for the scheme, while in reality, the assessee had not chosen to participate in the Vivad se Vishwas Scheme. The Principal Commissioner of Income Tax had issued Form No.5 certifying full and final payment of taxes, leading to the dismissal of the appeals. The counsel requested the appeals to be restored to the CIT(A) for a merit-based adjudication.

Upon hearing both sides, the Tribunal observed that the CIT(A) had indeed erred in dismissing the appeals without considering the merits, solely on the assumption of the assessee's participation in the scheme. The Tribunal, therefore, decided to remand the appeals back to the CIT(A) for a fresh adjudication on the merits of the case. The CIT(A) was directed to decide the issues based on facts and law, ensuring the assessee is given a fair opportunity to present their case.

Consequently, the Tribunal allowed the grounds raised by the assessee, setting aside the CIT(A)'s orders and remanding the appeals for a fresh decision on merit. The appeals were allowed for statistical purposes, emphasizing the need for a proper consideration of the issues at hand. The judgment was pronounced in an open court on 08/02/2022, providing clarity and a fair opportunity for the assessee to present their case before the CIT(A).