2021 (4) TMI 532 - AT - Income Tax

Benefit of 'Vivad se Vishwas Scheme, 2020' - HELD THAT - An identical application filed by an assessee in the case of M/s. Nannusamy Mohan (HUF) 2020 (11) TMI 484 - MADRAS HIGH COURT 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Form No. 1 and 2 within the due date prescribed for this purpose, we dismiss the appeals filed by the assessee's as withdrawn.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:
Appeals against common order by Commissioner of Income Tax (Appeals)-17, Chennai for respective assessment years.

Analysis:

1. Utilization of Direct Taxes 'Vivad se Vishwas Scheme, 2020:
The appeals were filed by the assessee against a common order by the Commissioner of Income Tax (Appeals)-17, Chennai. During the hearing, the assessee expressed their intention to utilize the Direct Taxes 'Vivad se Vishwas Scheme, 2020, to settle pending disputes related to Direct Taxes. The Scheme, announced by the Government of India in the Budget 2020, allows assessees to settle direct tax disputes by filing necessary declarations and undertaking as prescribed. It specifies the procedure for settling disputes and the amounts payable under the Act. If an assessee files a declaration, pays specified taxes, and withdraws the appeal pending before the appellate authorities, they are granted immunity from penalty and prosecution.

2. Benefit of the Vivad se Vishwas Scheme:
Some assessees had already filed declarations in Form No. 1 along with Form No. 2 to the Designated Authority and received Form 3. Others had filed Forms 1 and 2 and were awaiting Form 3. The Tribunal noted that the Hon'ble Jurisdictional High Court of Madras had considered a similar application in a previous case and allowed the appeal to be dismissed but granted liberty to restore the appeal if the Designated Authority rejected the application under section 4 of the Act. Consequently, the Tribunal dismissed the appeals filed by the assessees as withdrawn, with the liberty to restore the appeals if the Designated Authority rejected their applications under section 4 of the Act.

3. Legal Provisions and Observations:
The Direct Tax Vivad Se Vishwas Act, 2020, provides for the resolution of disputed taxes pending at various levels, including appellate forums. The Act defines terms like "disputed tax" and outlines the procedure for filing declarations and determining the amount payable by the declarant. It also specifies provisions related to appeals, payment, immunity from proceedings, and cases where the Act will not be applicable. The assessee was given liberty to restore the appeal if the decision on the declaration filed under section 4 was not in their favor, without the need for a separate application for condonation of delay.

4. Final Decision and Dismissal of Appeals:
Considering the applications filed by the assessees under the Vivad se Vishwas Scheme and the willingness of others to file the necessary forms within the prescribed time, the Tribunal dismissed the appeals as withdrawn. However, the assessees were granted the liberty to restore the appeals if their applications under section 4 were rejected by the Designated Authority. The order was pronounced on 1st April, 2021.

This detailed analysis of the judgment highlights the key issues, legal provisions, observations, and the final decision taken by the Tribunal in the context of the Direct Taxes 'Vivad se Vishwas Scheme, 2020.