Facts of the Case

The assessee filed an appeal before the Income Tax Appellate Tribunal against the order of the Commissioner of Income Tax (Appeals), Allahabad relating to Assessment Year 2010-11.

During the pendency of the appeal, the assessee opted to settle the outstanding tax dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. The Department accepted the application and issued Form No. 3, confirming the settlement amount payable under the scheme.

Consequently, the assessee sought permission to withdraw the appeal pending before the Tribunal.

Issues Involved

  1. Whether the appeal should continue after settlement under the Vivad Se Vishwas Scheme, 2020.
  2. Whether the Tribunal can dismiss an appeal as withdrawn upon confirmation of settlement by the Department.

Petitioner’s (Assessee’s) Arguments

  • The assessee submitted that the tax dispute had been resolved under the Vivad Se Vishwas Scheme, 2020.
  • The Department had already approved the application and issued Form No. 3.
  • Since the outstanding liability stood settled, continuation of the appeal was unnecessary.
  • Accordingly, the assessee requested withdrawal of the appeal.

Respondent’s (Revenue’s) Arguments

  • The Departmental Representative did not raise any objection to the withdrawal request.
  • It was acknowledged that the settlement under the scheme had been approved by the competent authority.

Court Order / Findings

The ITAT Allahabad observed that the assessee had successfully settled the dispute under the Vivad Se Vishwas Scheme, 2020 and that the Department had issued Form No. 3 confirming acceptance of the settlement.

In view of the settlement and absence of objection from the Revenue, the Tribunal allowed the assessee to withdraw the appeal.

Important Clarification

  • Appeals pending before appellate authorities become infructuous once disputes are settled under the Vivad Se Vishwas Scheme.
  • Issuance of Form No. 3 by the Department signifies acceptance of the settlement application.
  • Tribunals routinely permit withdrawal of appeals after such settlement.
  • Dismissal as withdrawn does not involve adjudication on merits of the case.

Link to download the order –https://itat.gov.in/public/files/upload/1606305671-ITA%20No.89%20-%20Smt.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.