Facts of the Case

The present appeal was filed by the assessee, Mrs. Ankita Aggarwal, before the Income Tax Appellate Tribunal, Delhi Bench, against the order dated 30.01.2019 passed by the Commissioner of Income Tax (Appeals)-12, New Delhi.

The appeal related to Assessment Year 2012-13 arising out of assessment proceedings initiated under sections 143(3) read with section 147 of the Income-tax Act, 1961.

During the course of hearing before the Tribunal, the assessee submitted a letter dated 17.11.2024 stating that she had already filed a settlement application in Form-1 under the Direct Tax Vivad Se Vishwas Rules, 2024.

The assessee’s counsel candidly brought this development to the notice of the Tribunal and the Revenue did not dispute the said fact.

 

Issues Involved

  1. Whether the appeal pending before the ITAT should continue when the assessee has already filed a settlement application under the Direct Tax Vivad Se Vishwas Scheme, 2024.
  2. Whether the appeal can be dismissed as withdrawn with liberty to revive, in case the settlement application is rejected.

 

Petitioner’s Arguments

  • A settlement application dated 25.10.2024 had already been filed in Form-1 under the Direct Tax Vivad Se Vishwas Rules, 2024.
  • In view of the settlement application, the assessee sought to withdraw the appeal pending before the Tribunal.
  • The assessee requested that the appeal may be dismissed as withdrawn, with liberty to revive the same in case the settlement application is rejected.

Respondent’s Arguments

  • The Revenue does not dispute the fact that the assessee has filed the settlement application under the Vivad Se Vishwas Scheme.
  • Considering the said development, the Department had no objection if the appeal is dismissed as withdrawn subject to appropriate liberty.

 

Court Order / Findings

The Income Tax Appellate Tribunal observed that the assessee has already filed a settlement application in Form-1 under the Direct Tax Vivad Se Vishwas Rules, 2024.

Considering this development and the fair submissions made by both parties, the Tribunal held that it would be appropriate to dismiss the appeal as withdrawn.

However, the Tribunal granted liberty to the assessee to revive the appeal if the settlement application filed under the Vivad Se Vishwas Scheme is rejected.

Accordingly, the appeal of the assessee was dismissed as withdrawn subject to all just exceptions.

 

Important Clarification

  • The dismissal of the appeal is only due to the filing of the settlement application under the Vivad Se Vishwas Scheme.
  • The assessee is entitled to revive the appeal if the settlement application filed in Form-1 dated 25.10.2024 is rejected by the authorities.

Link to download the order -  https://itat.gov.in/public/files/upload/1735642637-EhY2yN-1-TO.pdf

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