Tribunal dismisses appeal against Income Tax order, allows revival under Vivad Se Vishwas Scheme

The Tribunal dismissed the appeal filed by the assessee against the Deputy Commissioner of Income Tax's order under sections 143(3) and 144C(3) of the Income Tax Act, 1961. The assessee was considering utilizing the "Vivad Se Vishwas" Scheme to settle the tax disputes pending at various levels. The Tribunal allowed the appeal to be dismissed as withdrawn but with the condition that the assessee could revive the appeal if the matter was not resolved under the scheme, ensuring the assessee's right to approach the Tribunal for restoration if needed.

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Issues:
1. Appeal against order passed by Deputy Commissioner of Income Tax under sections 143(3) and 144C(3) of the Income Tax Act, 1961.
2. Consideration of "Vivad Se Vishwas" Scheme by the assessee.
3. Dismissal of appeal as withdrawn with the right for revival under certain conditions.

Analysis:

1. The appeal before the Appellate Tribunal ITAT Mumbai was directed against an order issued by the Deputy Commissioner of Income Tax under sections 143(3) and 144C(3) of the Income Tax Act, 1961. The appeal was filed by the assessee challenging the said order.

2. The Authorized Representative for the appellant informed the Tribunal that they were contemplating whether to avail the "Vivad Se Vishwas" Scheme. This scheme, enacted by the Government of India under the Direct Tax Vivad Se Vishwas Act, 2020, aimed to resolve disputed tax matters. The assessee was considering utilizing this scheme to settle the tax disputes pending at various levels.

3. Upon hearing the submissions from both parties, the Tribunal noted the provisions of the Vivad Se Vishwas Act, 2020, and the option it provided to taxpayers to resolve tax disputes. Considering this, the Tribunal allowed the appeal to be dismissed as withdrawn. However, a crucial condition was imposed to protect the assessee's right. The Tribunal stated that in case the matter was not resolved under the Vivad Se Vishwas Scheme, the assessee would retain the liberty to approach the Tribunal for restoration of the appeal. This safeguard ensured that the assessee could reinstate the appeal if the dispute was not settled through the scheme.

4. Consequently, the Tribunal pronounced its order on 15/12/2020, dismissing the appeal as withdrawn but preserving the right of the assessee to seek restoration of the appeal if the matter remained unresolved under the Vivad Se Vishwas Scheme. This decision reflected a balanced approach by the Tribunal, considering the potential resolution of the tax dispute through the scheme while safeguarding the assessee's legal options for appeal restoration if needed.

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