ITAT Chennai: Appeals Admitted, then Withdrawn under Vivad se Vishwas Scheme

The Appellate Tribunal, ITAT Chennai, admitted appeals by both assessees and Revenue for adjudication after condoning the delay in filing Revenue's appeals. Assessees expressing intent to settle disputes under the 'Vivad se Vishwas Scheme, 2020' led to the dismissal of all appeals as withdrawn, with the liberty for assessees to restore appeals if their scheme applications were rejected. Assessees were directed to promptly inform the Assessing Officer if opting out of the scheme or facing application rejection to enable restoration of appeals through a miscellaneous application.

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Issues:
1. Condonation of delay in filing appeals by Revenue.
2. Utilization of Direct Taxes 'Vivad se Vishwas Scheme, 2020' by assessees.
3. Dismissal of appeals filed by assessees and Revenue under the scheme.

Detailed Analysis:
1. The Appellate Tribunal, ITAT Chennai, considered 13 appeals filed by both the assessee and Revenue against a common order of the Commissioner of Income Tax (Appeals). The appeals by Revenue were found to be barred by limitation, and a petition for condonation of delay was filed, which was accepted by the Tribunal after considering the reasons provided by Revenue for the delay. The appeals by Revenue were admitted for adjudication after condonation of delay.

2. During the hearing, it was noted that some assessees expressed their intention to utilize the Direct Taxes 'Vivad se Vishwas Scheme, 2020' to settle pending disputes related to Direct Taxes. The Scheme allowed assessees to settle tax disputes by filing necessary declarations and undertakings, paying specified taxes, and withdrawing appeals pending before appellate authorities. The Tribunal observed that once assessees intended to settle disputes under the scheme, there was no point in keeping their appeals pending.

3. Referring to a similar case before the High Court of Madras, where an assessee intended to avail the benefits of the 'Vivad se Vishwas Scheme, 2020,' the Tribunal decided to dismiss the appeals filed by both assessees and Revenue as withdrawn. However, assessees were given the liberty to restore the appeals if the Designated Authority rejected their applications under section 4 of the Act. It was clarified that if an assessee opted out of the scheme or misrepresented facts leading to rejection of the application, the provisions of the Act would be applicable, and all proceedings would be revived. Assessees were directed to inform the Assessing Officer promptly if they decided to opt out of the scheme or if their application was rejected, to enable the filing of a miscellaneous application to restore the appeal.

In conclusion, all appeals filed by the assessees and Revenue were dismissed as withdrawn, with the option for assessees to restore the appeals if necessary.

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