Facts of the Case

The assessee, Mrs. Vijma Yadav, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Allahabad Bench, against the order of the Commissioner of Income Tax (Appeals) dated 13.02.2015 for Assessment Year 2008-09. The appellate proceedings originated from an assessment order passed by the Assessing Officer on 31.12.2010 under Section 144 of the Income-tax Act, 1961.

During the pendency of the appeal, the assessee approached the tax department to settle the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020 (VSVS). The department approved the application and issued Form No. 3 dated 05.02.2021 acknowledging settlement under the scheme.

Issues Involved

Whether the appeal pending before the Tribunal should continue or be dismissed when the assessee has opted for settlement under the Vivad Se Vishwas Scheme, 2020 and the application has been accepted by the department.

Petitioner’s (Assessee’s) Arguments

  • The assessee had opted for the VSVS Scheme, 2020 to settle outstanding tax disputes.
  • The application had been approved by the department.
  • Form No. 3 under the scheme had already been issued.
  • Accordingly, the assessee sought permission to withdraw the appeal pending before the Tribunal. 

Respondent’s (Department’s) Arguments

The Departmental Representative did not raise any objection to the withdrawal of the appeal, acknowledging that the assessee had availed the dispute resolution scheme for settlement of litigation.

Court Order / Findings

  • The assessee had duly opted for the Vivad Se Vishwas Scheme, 2020.
  • The department had confirmed acceptance of the application by issuing Form No. 3.
  • Since the assessee sought withdrawal of the appeal after availing the scheme, continuation of appellate proceedings was unnecessary.

Important Clarification

Dismissal of the appeal was procedural in nature due to settlement under the statutory dispute resolution scheme and does not constitute adjudication on merits of the case.

Link to download the order –

https://itat.gov.in/public/files/upload/1615372217-ITA%20238_vijmayadav-VSVS.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.