Oil & Natural Gas Corporation Ltd. Vs DCIT (ITAT Dehradun)
VSV Application Rejected, Yet Appeal Dismissed? ITAT Dehradun Restores ONGC Appeals
Dehradun ITAT, in Oil & Natural Gas Corporation Ltd. vs. DCIT (ITA Nos.142 & 143/DDN/2025, AYs 2003-04 & 2008-09, order dated 23.12.2025), partly allowed the assessee’s appeals and set aside the orders of the CIT(A), holding that the first appellate authority wrongly dismissed the appeals on the assumption that disputes stood settled under the Vivad Se Vishwas (VSV) Scheme.
The CIT(A) had dismissed ONGC’s appeals on the premise that the assessee had opted for settlement under the VSV Scheme. However, it was an admitted position that the Department had not approved the VSV application, and no payment was made by the assessee under the Scheme.
Before the Tribunal, the assessee contended that in the absence of approval and payment, the disputes could not be treated as settled, and therefore the CIT(A) was bound to adjudicate the appeals on merits. The Revenue did not dispute this position.
Accepting the submission, the ITAT held that dismissal of appeals on a non-existent settlement was legally unsustainable. Accordingly, the Tribunal set aside the impugned orders and restored the matters to the file of the CIT(A) with a direction to decide the appeals afresh on merits in accordance with law. The appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DEHRADUN
