2025 (3) TMI 1155 - AT - Income Tax

Entitlement to benefits of the Vivad Se Vishwas Scheme 2020 - technical glitches and procedural errors that prevented the issuance of Form 5 under the scheme - HELD THAT - Assessee should not be suffered from such technical glitches that prevail at the side of revenue. As is clear that there were technical glitches and considering that aspect of the matter the assessee has deposited the part payment of tax dispute even though the form no. 3 was not issued and served to the assessee. The bench noted that though the Form no. 3 placed on record has date 31.12.2020 but the same was served on 23.03.21 i.e. almost a year based on the copy of the form no. 3 filed by the ld. DR . As bench appreciate the effort of the revenue but at the same time the assessee alternatively argued that the present scheme of VSVS 2024is extended arms of that scheme of 2020 and therefore if the revenue could not resolve that dispute in the scheme of 2020 then the benefit of the present scheme be given to the assessee by the concerned PCIT by passing a order in that 2020 scheme and thereby the assessee may avail the scheme 2024 for which the assessee is also alternatively eligible. Based on these discussion we hold that the assessee be given the benefit of resolving the dispute of Vivad se Vishwas scheme either in 2020 or 2024. Since this matter is time barring the copy of the order be placed before the PCIT s office immediately so as to the assessee be given benefit as discussed herein above. Since the appeal was dismissed by ld. CIT(A) in incorrect appreciation of facts the same is also directed to restore to the file of the CIT(A) so as to avail the benefit of the new Scheme by the assessee. Assessee appeal allowed.

Summary

ISSUES PRESENTED and CONSIDERED

The primary issue considered in this judgment was whether the delay of 776 days in filing the appeal by the assessee should be condoned. The secondary issue was whether the assessee could avail the benefits of the Vivad Se Vishwas Scheme, 2020, despite technical glitches and procedural errors that prevented the issuance of Form 5 under the scheme.

ISSUE-WISE DETAILED ANALYSIS

Condonation of Delay

- Relevant Legal Framework and Precedents: The appeal was required to be filed within 60 days of the order from the Commissioner of Income Tax (Appeals), as per the Income Tax Act, 1961. The Tribunal considered the principles of condonation of delay, which typically involve assessing whether there was a bona fide reason for the delay and whether the delay was beyond the control of the appellant.

- Court's Interpretation and Reasoning: The Tribunal noted the reasons for the delay, which included technical issues with the Vivad Se Vishwas Scheme portal and the appellant's bona fide belief that the matter had been resolved under the scheme.

- Key Evidence and Findings: The affidavit submitted by the appellant detailing the technical glitches and the timeline of tax payments under the scheme was crucial. The appellant had acted in good faith by depositing the tax amount within the due date, despite the portal issues.

- Application of Law to Facts: The Tribunal applied the principle that delays caused by factors beyond the control of the appellant, especially when acting in good faith, should be condoned.

- Treatment of Competing Arguments: The Revenue objected to the delay but left the decision to the Tribunal's discretion. The Tribunal found the appellant's reasons for the delay convincing and condoned the delay.

- Conclusions: The Tribunal condoned the delay, allowing the appeal to be heard on its merits.

Application of Vivad Se Vishwas Scheme, 2020

- Relevant Legal Framework and Precedents: The Vivad Se Vishwas Scheme, 2020, was designed to settle tax disputes by allowing taxpayers to pay disputed taxes and withdraw appeals. The scheme required the issuance of various forms to complete the process.

- Court's Interpretation and Reasoning: The Tribunal recognized that technical glitches on the portal prevented the appellant from completing the process, despite making the required payments.

- Key Evidence and Findings: The Tribunal considered the timeline of payments and the fact that Form 3 was not initially available. The appellant's compliance with payment requirements was acknowledged.

- Application of Law to Facts: The Tribunal noted that the appellant had complied with the scheme's payment requirements and that the failure to issue Form 5 was due to technical issues, not the appellant's fault.

- Treatment of Competing Arguments: The Revenue acknowledged the technical issues and supported the appellant's claim, noting that the issue had been escalated to the technical team.

- Conclusions: The Tribunal held that the appellant should be allowed to benefit from the scheme, either under the 2020 or the subsequent 2024 scheme, due to the unresolved technical issues.

SIGNIFICANT HOLDINGS

- The Tribunal stated, "The assessee should not be suffered from such technical glitches that prevail at the side of revenue." This reflects the principle that taxpayers should not be penalized for issues beyond their control.

- The Tribunal concluded that the appellant should be given the benefit of resolving the dispute under the Vivad Se Vishwas Scheme, either in 2020 or 2024, due to the unresolved technical issues.

- The Tribunal directed that the appeal be restored to the file of the CIT(A) to allow the appellant to avail the benefits of the new scheme.

- The appeal was ultimately allowed, and the Tribunal ordered that the decision be communicated to the Principal Commissioner of Income Tax's office to expedite the resolution.