ITAT dismisses revenue appeal, recalls order for new hearing due to pending matter mismatch.

The ITAT dismissed the revenue's appeal after considering the assessee's application under the Vivad Se Vishwas Tax Scheme, 2020. The ITAT found that the issue raised in the appeal differed from the pending matter before the Ld.CIT(A)-8. Consequently, the ITAT recalled the previous order and scheduled a new hearing, allowing the revenue's Miscellaneous Application for recall. The order was pronounced in open court on 27th May 2022.

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Issues:
1. Recall of the order passed by the Tribunal in ITA.No. 835/Mum/2019
2. Application for settlement of dispute under the Vivad Se Vishwas Tax Scheme, 2020
3. Dismissal of the appeal filed by the revenue

Issue 1: Recall of the Tribunal's Order
The revenue filed a Miscellaneous Application seeking the recall of the Tribunal's order in ITA.No. 835/Mum/2019. The order pertained to the assessment of total income, treatment of capital gain on the sale of depreciable assets, and disallowance under section 14A r.w. Rule 8D. The Ld.CIT(A) had directed the AO to tax the capital gain at a lower rate, which led to the revenue's appeal before the ITAT. The ITAT, upon reviewing the submission by the assessee regarding the Vivad Se Vishwas Tax Scheme, 2020, dismissed the appeal by the revenue. The revenue sought the recall of this order, emphasizing a mistake apparent from the record under Sec.254(2) of the Income-tax Act, 1961.

Issue 2: Application under Vivad Se Vishwas Tax Scheme
During the appellate proceedings, the assessee had filed a letter along with a copy of the declaration under the Vivad Se Vishwas Tax Scheme, 2020, informing the ITAT about the application for settlement of a dispute under the scheme. The ITAT considered the submission and material on record, concluding that there was no need to continue the matter as the assessee had applied for settlement under the scheme. However, the revenue was granted liberty to seek restoration of the appeal if the assessee's application was rejected. The ITAT clarified that any delay by the revenue in seeking restoration should be condoned without requiring a separate application for condonation of delay.

Issue 3: Dismissal of the Revenue's Appeal
The ITAT dismissed the appeal filed by the revenue after considering the Form-2 filed by the assessee under the Vivad Se Vishwas Scheme, 2020. It was noted that the issue in the pending appeal before the Ld.CIT(A)-8 was different from the one raised by the revenue before the ITAT. Consequently, the ITAT decided to recall the order in ITA.No. 835/Mum/2019 and directed the Registry to schedule a new hearing after issuing notices to both parties. The Miscellaneous Application filed by the revenue seeking the recall was allowed, and the order was pronounced in the open court on 27th May 2022.

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