ITAT dismisses assessee's appeals on tax additions, grants recall liberty pending tax liability clarification

The ITAT dismissed all appeals of the assessee challenging orders of the Ld CIT(A) on additions made by the AO in various assessment years, including u/s 40(a)(ia), debenture redemption premium, and loss from derivative contract. The dismissal was based on the assessee's participation in the Vivad Se Vishwas Scheme, 2020, and the initiation of the appeal withdrawal process. The ITAT granted liberty to the assessee to seek a recall of the order if necessary, due to pending issuance of Form no.3 specifying the tax liability.

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Issues:
Challenging orders of Ld CIT(A) on additions made by AO in assessment years 2011-12 to 2014-15, including u/s 40(a)(ia), debenture redemption premium, and loss from derivative contract. Assessee's request for adjournment due to opting for Vivad Se Vishwas Scheme, 2020. Dismissal of appeals by ITAT as withdrawn based on assessee's participation in the scheme.

Analysis:
The appeals before the ITAT challenged the orders of the Ld CIT(A) partially confirming additions made by the AO in various assessment years. The issues under challenge included additions made u/s 40(a)(ia) for non-deduction of tax at source, disallowance of debenture redemption premium amortization, and disallowance of loss from a derivative contract. The assessee opted for the Vivad Se Vishwas Scheme, 2020, and requested an adjournment of the appeals.

The ITAT considered the submissions of both parties and observed that the assessee had filed necessary declarations and undertakings under the Vivad Se Vishwas Act, 2020. The Departmental Representative (D.R) highlighted the requirement for the assessee to withdraw pending appeals after filing Form VSV1 under the scheme. The D.R emphasized that the assessee must furnish a copy of the form along with proof of tax payment to the department.

After due consideration, the ITAT noted that since the assessee had opted for the Vivad Se Vishwas Scheme and had initiated the process of withdrawing appeals, keeping the appeals pending would serve no purpose. Consequently, the ITAT dismissed all appeals of the assessee as withdrawn. The ITAT acknowledged the assessee's concerns regarding the non-receipt of Form no.3 specifying the tax liability, and granted liberty to the assessee to file an appropriate application for recall of the order if necessary.

In conclusion, the ITAT dismissed all appeals of the assessee as withdrawn due to the assessee's participation in the Vivad Se Vishwas Scheme, 2020. The ITAT provided the assessee with the opportunity to seek a recall of the order if required, considering the pending issuance of Form no.3 by the tax authorities.

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