Facts of the Case

The appellant, Rakesh Arora, had filed an appeal before the Delhi High Court under the Income Tax Act, 1961. During the pendency of the appeal, the appellant opted to settle the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. Consequently, an application was filed seeking withdrawal of the appeal.

 Issues Involved

  • Whether an appellant can withdraw a pending income tax appeal after opting for settlement under the Direct Tax Vivad Se Vishwas Scheme, 2020.
  • Whether the court should allow such withdrawal when there is no objection from the respondent.

Petitioner’s Arguments

  • The appellant submitted that he had opted for dispute resolution under the Direct Tax Vivad Se Vishwas Scheme, 2020.
  • Based on such application under the scheme, the appellant sought permission to withdraw the pending appeal.

 Respondent’s Arguments

  • The counsel for the respondent (Assistant Commissioner of Income Tax) stated that there was no objection to the withdrawal of the appeal.

 Court Order / Findings

  • The Delhi High Court allowed the application filed by the appellant.
  • The appeal was permitted to be withdrawn in view of the appellant opting for settlement under the Direct Tax Vivad Se Vishwas Scheme, 2020.
  • The matter was disposed of accordingly.

Important Clarification

  • The judgment reinforces that once an assessee opts for settlement under the Direct Tax Vivad Se Vishwas Scheme, 2020, withdrawal of pending appeals is permissible.
  • The court may allow such withdrawal, especially where the revenue has no objection.
  • The order is procedural in nature and does not adjudicate on merits of the tax dispute.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2021:DHC:4504-DB/RSE17022021ITA9562018_161513.pdf

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