Facts of the Case

Multiple appeals filed by the assessee before the Income Tax Appellate Tribunal were pending adjudication for relevant assessment years. During the pendency of the appeals, the assessee opted to resolve the tax dispute under the Direct Tax Vivad Se Vishwas Act, 2020 (VSVS) introduced by the Government of India to reduce pending tax litigation.

Issues Involved

Whether pending appeals before the Tribunal should continue to be adjudicated when the assessee has opted for dispute resolution under the Vivad Se Vishwas Scheme.

Petitioner’s (Assessee’s) Position

  • The assessee had validly opted for settlement under the VSVS scheme.
  • Necessary declarations were filed and accepted by the designated authority.
  • Upon settlement, continuation of appellate proceedings would be unnecessary.

Respondent’s (Revenue’s) Position

  • The Revenue did not oppose disposal of the appeals in view of the assessee’s participation in the statutory dispute resolution scheme.
  • Once settlement is processed, the tax dispute ceases to survive for adjudication.

Court Order / Findings (ITAT Decision)

  • The assessee having opted for settlement under the Direct Tax Vivad Se Vishwas Act, 2020, the disputes covered by the appeals stood resolved.
  • No adjudication on merits was required thereafter.
  • Accordingly, the pending appeals were treated as withdrawn / dismissed as infructuous in terms of the scheme.

Important Clarification

  • Once the designated authority issues the final certificate under VSVS (Form-5), the dispute is considered settled.
  • Pending appeals before appellate authorities are liable to be disposed of as withdrawn.
  • The scheme provides finality to tax disputes covered by the declaration.

Link to download the order - https://itat.gov.in/public/files/upload/1611815792-73-78-jeewanjyoti%20VSVS.pdf

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