2020 (12) TMI 73 - AT - Income Tax

Benefit of Vivad se Vishwas Scheme-2020‟ (VSV scheme) - HELD THAT - Since, the assessee had already filed an application under direct tax Vivad Se Viswas Scheme Act 2020 , there is no need to keep these appeals pending before us in view of the decision of Hon'ble Madras High Court in the case of Nannusamy Mohan (HUF) vs. ACIT 2020 (11) TMI 484 - MADRAS HIGH COURT We give liberty to the assessee to get the appeal restored in the event that the assessee does not succeed on the declaration filed by the assessee under direct tax Vivad Se Viswas Scheme-2020 . In other words if the assessee‟s declaration to be filed is not accepted by the Revenue for any reason whatsoever, the assessee can make a prayer before the Bench for recalling of the order by filing a miscellaneous application for restoration of appeal. The Registry will place such petition before the Bench concerned. We dismiss these cross appeals with a liberty to get them recalled in the eventuality of assessee‟s declaration not getting accepted by the Revenue.

Summary

Issues: Cross appeals arising from the order of the Commissioner of Income Tax (Appeals) regarding assessment under the Income Tax Act, 1961 for the assessment year 2015-16.

Analysis:
1. The appeals before the Appellate Tribunal ITAT Mumbai, involving cross appeals in ITA No.681/Mum/2019 & ITA No.628/Mum/2019, stemmed from the order of the Commissioner of Income Tax (Appeals)-20, Mumbai, against the assessment order passed by the Income Tax Officer, 12(1)(3), Mumbai under section 143(3) of the Income Tax Act, 1961 for the assessment year 2015-16.

2. The assessee had already filed a declaration under the 'Vivad se Vishwas Scheme' to resolve disputes related to the appeals, as stated by the counsel for the assessee, which was considered a statement made from the Bar.

3. The Tribunal considered the application filed by the assessee under the 'Vivad Se Viswas Scheme Act 2020' and referred to a decision of the Hon'ble Madras High Court in a similar case. The High Court's decision highlighted the liberty given to the assessee to restore the appeal if the declaration filed under the scheme was not in favor of the assessee.

4. Following the precedent set by the Madras High Court, the Tribunal granted liberty to the assessee to seek restoration of the appeal if the declaration filed under the 'Vivad Se Viswas Scheme-2020' was not accepted by the Revenue. The Tribunal allowed the assessee to make a prayer for recalling the order by filing a miscellaneous application for restoration of the appeal.

5. The Tribunal dismissed the cross appeals with the liberty for the assessee to seek a recall in case the declaration was not accepted by the Revenue, aligning with the decision of the Madras High Court. Consequently, the substantial questions of law were left open, and no costs were imposed.

6. Ultimately, the Tribunal pronounced the order on 24/11/2020, dismissing both the appeal of the assessee and that of the revenue, with the provision for potential restoration based on the outcome of the declaration filed under the 'Vivad Se Viswas Scheme-2020'.