Facts of the Case

  • The Revenue had filed income tax appeals against the respondent company.
  • During pendency, the assessee opted for settlement under the Vivad Se Vishwas (VSV) Scheme.
  • The designated authority issued a revised Form-3, determining the payable tax.
  • The respondent deposited the required tax amount as per the scheme.
  • Applications were filed seeking disposal/withdrawal of the pending appeals to enable final settlement.

Issues Involved

  1. Whether pending income tax appeals can be disposed of to facilitate settlement under the VSV Scheme.
  2. Whether liberty should be granted to revive appeals if settlement fails.

Petitioner’s (Revenue’s) Arguments

  • The Revenue acknowledged issuance of revised Form-3 by the designated authority.
  • It did not oppose disposal of appeals subject to outcome of settlement under the scheme.

Respondent’s Arguments

  • The respondent submitted that:
    • Tax dues as per revised Form-3 had already been deposited.
    • Disposal of appeals was necessary to complete compliance under the VSV Scheme (filing Form-4).
    • In case settlement fails, Revenue may be granted liberty to revive appeals.

Court’s Findings / Order

  • The Delhi High Court allowed the applications.
  • The pending appeals were disposed of to enable settlement under the VSV Scheme.
  • The Court granted liberty to the Revenue to revive the appeals if settlement is not completed under the scheme.

Important Clarification

  • Disposal of appeals is conditional and procedural, not a decision on merits.
  • Revival rights are preserved for the Revenue in case the VSV Scheme settlement does not materialize.
  • The order ensures smooth implementation of dispute resolution schemes without prejudicing either party.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2021:DHC:3440-DB/MMH28102021ITA4592006_225220.pdf

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