Revenue appeal status under Vivad Se Vishwas Act meant settlement could be made on half the disputed tax.

Where a Tribunal appeal originally filed by the Revenue was later restored by the High Court for fresh decision on merits, the pending appeal retained its character as a Revenue appeal under the Direct Tax Vivad Se Vishwas Act, 2020. On that factual and procedural sequence, the first proviso to section 3 applied, so the amount payable for settlement was one-half of the amount specified in the scheme table. The assessees were therefore entitled to settle the dispute on payment of 50% of the disputed tax, and the contrary demand for full payment was not sustainable.

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Issues: Whether the appeal pending before the Income Tax Appellate Tribunal was a Revenue appeal so as to attract payment of one-half of the disputed tax under the first proviso to section 3 of the Direct Tax Vivad Se Vishwas Act, 2020.

Analysis: The dispute arose because the declaration under the scheme treated the pending appeal as one filed by the Revenue, while the Designated Authority treated it as an assessee appeal and demanded payment of the full disputed tax. The earlier litigation record showed that the assessing officer had appealed to the Tribunal against relief granted by the Commissioner (Appeals), and the Tribunal's remand order was later set aside by the High Court, which restored the Revenue's appeal to the Tribunal for fresh decision on merits. On that factual and legal sequence, the pending appeal continued to retain its character as the Revenue's appeal. Once that character was accepted, the first proviso to section 3 of the scheme applied and the amount payable was one-half of the amount specified in the table.

Conclusion: The pending appeal was a Revenue appeal and the assessee was entitled to settle the dispute on payment of 50% of the disputed tax.

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