Challenged Tax Tribunal Order for Assessment Year 2008-2009: Vivad Se Vishwas Scheme

The appellant challenged the Income Tax Appellate Tribunal's order for the Assessment Year 2008-2009, citing issues of perversity and rejection of a petition under section 254(2) of the Income Tax Act, 1961. Expressing intent to benefit from the Vivad Se Vishwas Scheme, the appellant sought resolution under the Direct Tax Vivad Se Vishwas Act, 2020. The Court granted liberty to restore appeals if the declaration outcome is unfavorable, directing the appellant to file Form No.I by a specified date. The Tax Case Appeals were disposed of with liberty for restoration, leaving substantial questions of law open and waiving associated costs.

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Issues:
- Challenge to the order of the Income Tax Appellate Tribunal
- Benefit of Vivad Se Vishwas Scheme and its applicability
- Provisions of the Direct Tax Vivad Se Vishwas Act, 2020
- Liberty to restore appeals based on the outcome of the declaration filed

Challenge to ITAT Order:
The appellant filed appeals challenging the order of the Income Tax Appellate Tribunal (ITAT) for the Assessment Year 2008-2009. The appellant raised substantial questions of law regarding the alleged perversity of the ITAT's order and the rejection of a miscellaneous petition under section 254(2) of the Income Tax Act, 1961.

Vivad Se Vishwas Scheme:
The appellant expressed the intention to benefit from the Vivad Se Vishwas Scheme (VVS Scheme) by filing an application or declaration in Form No.I. Considering subsequent developments, the Court noted the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, providing for the resolution of tax disputes and related matters. The Act allows declarants to resolve pending tax disputes at various levels, offering provisions for determining the amount payable and granting immunity from certain penalties.

Provisions of the Direct Tax Vivad Se Vishwas Act, 2020:
Under the Act, a declarant can file a declaration with the designated authority to resolve tax arrears, with specific provisions for different stages of dispute resolution, including appeals, writ petitions, and proceedings before tax authorities. The Act outlines the process of filing declarations, determining payable amounts, payment timelines, and immunity from certain penalties, while also specifying cases where the Act does not apply.

Liberty to Restore Appeals:
The Court granted the appellant the liberty to restore the appeals if the decision on the filed declaration is unfavorable. The appellant was directed to file Form No.I by a specified date, with the competent authority instructed to process the application promptly. The Court disposed of the Tax Case Appeals with the mentioned liberty for restoration, keeping the substantial questions of law open and waiving any costs associated with the proceedings.

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