Facts of the Case

The assessee filed the present appeal against the appellate order dated 21/09/2023 passed by the Commissioner of Income Tax (Appeals) under Section 250 of the Income Tax Act, 1961 for Assessment Year 2014-15.

During the course of hearing before the ITAT, the assessee submitted an application dated 12/05/2025 stating that she had opted for the Vivad Se Vishwas Scheme, 2024 (“VSVS”). It was submitted that the matter had been settled under the Scheme and that the prescribed Form 4 from the designated authority was awaited. Accordingly, the assessee requested permission to withdraw the present appeal.

 Issues Involved

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 Whether the appeal pending before the ITAT can be dismissed as withdrawn upon the assessee opting for the Vivad Se Vishwas Scheme, 2024.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

 Petitioner’s Arguments

  • The assessee had opted for the Vivad Se Vishwas Scheme, 2024 for settlement of the tax dispute.
  • The matter had been finally settled under the Scheme, and Form 4 from the designated authority was awaited.
  • In view of opting for the Scheme, the assessee sought permission to withdraw the appeal pending before the Tribunal.

 Respondent’s Arguments

The Departmental Representative did not raise any objection to the request made by the assessee for withdrawal of the appeal.

 Court Order / Findings

The Tribunal observed that the assessee had opted for the Vivad Se Vishwas Scheme, 2024 and had sought withdrawal of the appeal.

Considering the request of the assessee and in the absence of any objection from the Department, the Tribunal dismissed the appeal as withdrawn.

However, by way of abundant caution, the Tribunal clarified that the assessee would be at liberty to approach the Income Tax Appellate Tribunal for restoration of the appeal in the event it is found that the issue in dispute is not settled under the aforesaid Scheme.

 Important Clarification

  • Withdrawal of an appeal before the ITAT is permissible when the assessee opts for dispute resolution under the Vivad Se Vishwas Scheme, 2024.
  • The Tribunal may dismiss the appeal as withdrawn upon such request, especially where the Revenue raises no objection.
  • As a safeguard, the Tribunal may grant liberty to the assessee to seek restoration of the appeal if the dispute is not ultimately resolved under the Scheme.
  • This order reflects the procedural approach adopted by the ITAT in matters involving settlement under statutory dispute resolution schemes.

 Link to download the order - https://www.mytaxexpert.co.in/uploads/1770880129_SURJADEVIPRATAPGARHVS.NFACCAREOFINCOMETAXOFFICERPRATAPGARHNEWLUCKNOWINCOMETAXOFFICEPRATAPGARHLUCKNOW2.pdf 

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