Revenue's Appeal Dismissed under Direct Tax Vivad Se Vishwas Act

The Appellate Tribunal ITAT Delhi dismissed the Revenue's appeal against an order for the assessment year 2012-13 under the Direct Tax Vivad Se Vishwas Act, 2020. The Tribunal noted that since the assessee had settled the matter under the scheme and received Form No. 3, the appeal was deemed withdrawn as per the Act's provisions. The Tribunal emphasized that if the disputed tax arrears were not paid, the Revenue could apply for the order's recall.

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Issues: Appeal against order dated 26.06.2018 for assessment year 2012-13 under the Direct Tax Vivad Se Vishwas Act, 2020.

The judgment delivered by the Appellate Tribunal ITAT Delhi pertains to an appeal by the Revenue against an order passed by the Commissioner of Income Tax (Appeals) for the assessment year 2012-13. The counsel for the assessee informed the Tribunal that the assessee had settled the matter under the "Vivad Se Vishwas Scheme, 2020" and had received Form No. 3. The counsel sought permission to treat the appeal as deemed to be withdrawn under the provisions of the Direct Tax Vivad Se Vishwas Act, 2020. The Tribunal heard both parties and examined Form No. 3 issued by the Income-tax Department. Referring to Section 4(2) of the Act, the Tribunal noted that upon filing the declaration, any pending appeal related to disputed income, interest, penalty, fee, and tax arrears shall be deemed withdrawn upon issuance of the certificate by the designated authority. Consequently, since Form No. 3 had been issued in the case of the assessee, the appeal of the Revenue was deemed withdrawn, leading to its dismissal. However, the judgment highlighted that if the tax arrears in dispute were not ultimately paid, the Revenue would have the opportunity to file an application for the order's recall, which the Tribunal would consider in accordance with the law. The order was pronounced in the open court, concluding the matter.

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