2021 (4) TMI 166 - AT - Income Tax

Direct Taxes 'Vivad se Vishwas Scheme, 2020' - some of assessee's have filed form No. 1 and 2 and awaiting form No. 3 from the designated authority - In some cases, the assessee's have received form No. 3 from the designated authority and in some cases, the assessee have filed letter and expressed their willingness to file form No. 1 and 2 before the designated authority - HELD THAT - In these present appeals, some assessee's have filed declaration in Form No. 1 along with undertaking waiving rights for any remedy in Form No. 2 to the designated Authority and has also received Form 3. In some cases, form No. 1 and 2 has been filed and awaiting form No. 3 from the designated authority and in some cases, the assessee's have expressed their willingness to file form No. 1 and 2 and settle their dispute under the scheme. Therefore, once the assessee's intend to file a declaration in Form No. 1 along with undertaking and expressed their willingness to settle pending disputes regarding direct taxes, then there is no point in keeping appeal filed by the assessee's. We, further noted that recently the Hon'ble Jurisdictional High Court of Madras has considered an identical application filed by an assessee in the case of M/s. Nannusamy Mohan (HUF) 2020 (11) TMI 484 - MADRAS HIGH COURT for availing the benefit of 'Vivad se Vishwas Scheme, 2020', where the Hon'ble High Court has dismissed the appeal filed by the petitioner as withdrawn, but allowed liberty to the assessee to restore the appeal in the event the designated authority for any reason reject application filed by the assessee under section 4 of the Act. Thus taking note of the fact that some assessee's have already filed declaration in Form No. 1 along with Form No. 2 to the Designated Authority and received Form 3 and some assessee's had already filed Form No. 1 2 and awaiting form No. 3 from the designated authority and also the fact that remaining assessee's are willing to file Form No. 1 and 2 within the due date prescribed for this purpose, we dismiss the appeals filed by the assessee's as withdrawn. However, a liberty is given to the assessee's to restore the appeals, in the event of the Designated Authority, for any reason reject the application filed by the assessee under section 4 of the said Act.

Summary

Issues:
- Condonation of delay in filing appeals
- Utilization of Direct Taxes 'Vivad se Vishwas Scheme, 2020' for settling disputes

Condonation of Delay in Filing Appeals:
The appeals filed by the assessees were found to be barred by limitation, requiring a petition for condonation of delay. The reasons provided for the delay were deemed reasonable, meeting the criteria under the Act for condonation. The delay was condoned, and the appeals were admitted for adjudication.

Utilization of Direct Taxes 'Vivad se Vishwas Scheme, 2020' for Settling Disputes:
The Government of India introduced the 'Vivad se Vishwas Scheme, 2020' to resolve pending direct tax disputes. Assessees were allowed to settle disputes by filing necessary declarations and undertaking as per the scheme's provisions. The scheme specified the payable amounts for taxes, interest, and penalties. Assessees who filed declarations and paid specified taxes under the scheme could withdraw appeals pending before appellate authorities, receiving immunity from penalties and prosecution.

Some assessees had already filed declarations and received necessary forms, while others were in the process or willing to settle disputes under the scheme. In alignment with a similar decision by the High Court of Madras, the appeals were dismissed as withdrawn, granting liberty to the assessees to restore them if the Designated Authority rejected their applications under section 4 of the Act.

In conclusion, both appeals were dismissed as withdrawn, considering the assessees' intentions to utilize the 'Vivad se Vishwas Scheme, 2020' for settling disputes. The assessees were given the opportunity to restore the appeals if needed, based on the Designated Authority's decision regarding their applications under the Act.