2021 (6) TMI 440 - AT - Income Tax

Vivad se Vishwas Scheme, 2020 - 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 - HELD THAT - 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form no. 1 and 2 within the due date prescribed for this purpose, we dismiss the appeals filed by the assessee s as withdrawn.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. Appeals filed by the assessee are dismissed as withdrawn and the Miscellaneous Petitions are allowed.

Issues:
1. Recall of Tribunal order under section 254(2) of the Income Tax Act, 1961 for assessment years 2001-02 to 2007-08.
2. Availing benefit of 'Vivad se Vishwas Scheme, 2020' by the assessee.
3. Interpretation and application of the Direct Taxes 'Vivad se Vishwas Scheme, 2020'.
4. Dismissal of appeals filed by the assessee and the liberty to restore the appeals if the Designated Authority rejects the application under section 4 of the Act.

Detailed Analysis:
1. The Appellate Tribunal ITAT Chennai dealt with seven Miscellaneous Petitions filed by the assessee under section 254(2) of the Income Tax Act, 1961, seeking the recall of the Tribunal order dated 10.05.2016 for assessment years 2001-02 to 2007-08. The assessee contended that mistakes were apparent in the order and expressed the intention to utilize the 'Vivad se Vishwas Scheme, 2020' to settle pending tax disputes. Both the assessee's representative and the Departmental Representative supported the recall of the order due to the assessee's decision to avail the benefits of the scheme.

2. The Tribunal considered the provisions of the 'Vivad se Vishwas Scheme, 2020' announced by the Government of India to resolve direct tax disputes at various appellate forums. The scheme allowed assessees to settle disputes by filing necessary declarations and undertakings, specifying the payable amounts under the Act. The Tribunal noted that some assessee's had already filed declarations and received Form 3 from the Designated Authority, while others were in the process of doing so. Referring to a similar decision by the Madras High Court, the Tribunal observed that once an assessee intends to settle disputes under the scheme, there is no need to maintain pending appeals.

3. The Tribunal analyzed the provisions of the 'Vivad se Vishwas Scheme, 2020' in detail, highlighting the options provided to declarants to resolve tax disputes pending at different levels, including before the First Appellate Authority, Tribunal, High Court, or Supreme Court. The scheme outlined the procedure for filing declarations, determining payable amounts, and granting immunity from penalties and prosecution upon compliance. Provisions regarding appeals, writ petitions, time and manner of payment, and exceptions under the Act were also discussed.

4. In light of the assessee's intentions to settle disputes under the scheme, the Tribunal dismissed the appeals filed by the assessee as withdrawn. However, the Tribunal granted liberty to the assessee to restore the appeals if the Designated Authority rejects the application filed under section 4 of the Act. The decision was in line with the Madras High Court's ruling, emphasizing the importance of complying with the scheme's requirements and timelines. The appeals were dismissed as withdrawn, and the Miscellaneous Petitions were allowed, providing a pathway for potential restoration based on the Designated Authority's decision.

This detailed analysis reflects the Tribunal's thorough consideration of the 'Vivad se Vishwas Scheme, 2020' and its implications on the pending tax disputes of the assessee, ultimately leading to the dismissal of appeals with the opportunity for restoration based on the scheme's outcomes.

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