Assessee withdraws appeal under IT Act for A.Y. 2015-16 to settle tax arrears dispute via Vivad Se Vishwas Scheme.

The Tribunal accepted the assessee's request to withdraw the appeal against the CIT(A) order for A.Y. 2015-16 under the Income Tax Act, 1961, as the assessee opted to settle the tax arrears dispute under the "Vivad Se Vishwas Scheme, 2020." The withdrawal was subject to a condition that if the dispute is not resolved as per the scheme, the assessee can approach the Tribunal for reinstatement of the appeal. The appeal was dismissed as 'withdrawn' with the possibility of reinstatement if needed, ensuring the assessee's right to appeal if the dispute remains unresolved.

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Issues:
Appeal against CIT(A) order for A.Y. 2015-16 under Income Tax Act, 1961.
Withdrawal of appeal by assessee under "Vivad Se Vishwas Scheme, 2020".
Acceptance of withdrawal request subject to conditions.

Analysis:
The judgment deals with an appeal filed by the assessee against the order of CIT(A)-5, Hyderabad for the assessment year 2015-16 under the Income Tax Act, 1961. The appeal was heard through Video Conference on 09.12.2020, where the assessee's representative submitted a withdrawal application dated 03.12.2020. The application stated that the assessee has chosen to settle the tax arrears dispute for the relevant assessment year under the "Vivad Se Vishwas Scheme, 2020". It was further mentioned that the assessee had filed an application and received Form-3 in this regard. The representative of the Revenue did not object to this submission by the assessee.

The Tribunal accepted the assessee's request for withdrawal of the appeal since the Principal Commissioner-2 had issued Form-3 in relation to the settlement under the scheme. However, this acceptance was subject to a condition. The judgment stated that if the dispute concerning tax arrears for the mentioned assessment year is not resolved as per the Act mentioned earlier, the assessee has the liberty to approach the Tribunal for reinstatement of the appeal. The Tribunal would then consider such an application appropriately according to the law. The representative of the Revenue did not object to this caveat. Consequently, the appeal of the assessee was dismissed as 'withdrawn'. The order was pronounced in Open Court on 11/12/2020.

This judgment thus highlights the procedural aspect of withdrawal of an appeal by an assessee under a specific scheme, with the Tribunal allowing such withdrawal subject to the condition that the dispute resolution under the scheme may lead to reinstatement of the appeal if necessary. The judgment ensures that the assessee has the opportunity to reinitiate the appeal in case the dispute is not resolved as anticipated under the scheme.

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