Ravi Shivangekar Vs ITO (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT) Pune dismissed the appeal in Ravi Shivangekar vs ITO after the assessee opted for the Direct Tax Vivad Se Vishwas Scheme 2024. The case involved an appeal against an order dated October 9, 2024, issued by the Commissioner of Income Tax (Appeals) – National Faceless Appeal Centre (NFAC) for the assessment year 2020-21. During the hearing, the assessee’s counsel informed the tribunal that an application had been submitted to resolve the dispute under the scheme, along with Form-1, while Form-2 was still awaited.
The Vivad Se Vishwas Scheme, introduced to reduce litigation in direct tax matters, allows taxpayers to settle disputes by paying a prescribed amount without incurring further penalties or interest. Given that the assessee had voluntarily chosen to avail of the scheme, the tribunal considered the request to withdraw the appeal. Since there was no objection from the Revenue Department, ITAT Pune allowed the withdrawal, leading to the dismissal of the appeal.
Judicial precedents suggest that tribunals often permit withdrawal of appeals when taxpayers opt for settlement schemes. These cases reinforce the principle that taxpayers opting for government dispute resolution initiatives can have their appeals withdrawn without prejudice.
