Facts of the Case

The assessee, Shri Dharam Pal Singh, filed an appeal before the Income Tax Appellate Tribunal, Allahabad Bench, for Assessment Year 2012-13 against the appellate order dated 24.09.2024 passed by the Commissioner of Income Tax (Appeals).

During the course of hearing, it was brought to the notice of the Tribunal that the assessee had opted for the Vivad Se Vishwas Scheme, 2024. The designated authority had issued a certificate in Form-2 dated 31.03.2025. On this basis, the assessee requested permission to withdraw the pending appeal before the Tribunal.

 Issues Involved

  1. Whether the appeal pending before the ITAT should be dismissed as withdrawn upon opting for the Vivad Se Vishwas Scheme, 2024.
  2. Whether liberty should be granted to the assessee to seek restoration of the appeal if the dispute is not ultimately settled under the scheme.

 Petitioner’s (Assessee’s) Submissions

The assessee submitted an application dated 14.04.2025 stating that he had opted for the Vivad Se Vishwas Scheme, 2024 and that the designated authority had issued the requisite certificate in Form-2. Accordingly, the assessee sought permission to withdraw the appeal pending before the Tribunal.

Respondent’s (Revenue’s) Submissions

The learned Departmental Representative for the Revenue raised no objection to the withdrawal of the appeal in view of the assessee opting for the Vivad Se Vishwas Scheme, 2024.

Court Order / Findings

The ITAT observed that the assessee had opted for the Vivad Se Vishwas Scheme, 2024 and that Form-2 had been issued by the designated authority. In view of this, and since the Revenue raised no objection, the Tribunal dismissed the appeal as withdrawn.

By way of abundant caution, the Tribunal clarified that the assessee would be at liberty to approach the ITAT for restoration of the appeal in case it is found that the issue in dispute is not settled under the Vivad Se Vishwas Scheme.

Important Clarification / Legal Principle

Where an assessee opts for the Vivad Se Vishwas Scheme and the designated authority issues Form-2, the pending appeal may be dismissed as withdrawn. However, the assessee retains the right to seek restoration of the appeal if the dispute is not ultimately resolved under the scheme.

Link to download the order - https://www.mytaxexpert.co.in/uploads/1770871942_DHARMPALSINGHBAGHPATVS.THEINCOMETAXOFFICERWARD15BARAUT.pdf 

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