GE Steam Power System’s Income Tax Appeals Dismissed on opting VSVS

GE Steam Power Systems Vs ACIT (ITAT Delhi)

Income Tax Appellate Tribunal (ITAT) Delhi bench has dismissed appeals filed by GE Steam Power Systems for assessment years 2015-16 and 2016-17. The dismissal followed the company’s decision to settle the tax disputes under the Vivad se Vishwas Scheme, 2024 (VSVS).

GE Steam Power Systems informed the ITAT that it had filed Form No. 1 for both assessment years on December 26, 2024, indicating its intent to opt for the VSVS, although Form No. 2 from the department was still pending. The Departmental Representative did not object to the appeals being disposed of under the scheme.

Consequently, the ITAT dismissed the appeals as withdrawn. However, to safeguard the assessee’s rights, the Tribunal granted liberty to revive the appeals if the VSVS application does not materialize. The ITAT further clarified that if the assessee seeks to restore the appeal due to the VSVS declaration not being accepted, the Registry will not require an application for condonation of delay if the restoration request is filed late due to delays in communicating the VSVS outcome. This aligns with the precedent set by the Madras High Court in M/s. Nannusamy Mohan (HUF) vs. ACIT, decided on October 16, 2020.

FULL TEXT OF THE ORDER OF ITAT DELHI

These appeals by the assessee are directed against the assessment orders dated 20.02.2018 & 20.09.2019 passed u/s. 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’), for assessment years 2015-16 and 2016-17, respectively.

2. The ld. Counsel for the assessee submits that the assessee has opted to settle the dispute in the appeals under Vivad se Vishwas Scheme, 2024 (in short ‘VSVS’). Form No. 1 has already been filed for both assessment years i.e. AY 2015-16 and 2016-17 on 26.12.2024. However, till date Form No. 2 has not been received from the Department. He placed on record copy of Form No. 1 filed by the assessee for AY 2015-16 and 2016-17. Further, the assessee’s declaration under VSVS has not been rejected by the Department till date.

3. The ld. DR raise no objection in case the assessee’s appeals are disposed of under VSVS.

4. In light of the statement made by ld. Counsel for the assessee, the appeals are dismissed as withdrawn.

5. Liberty is granted to the assessee to revive appeal(s) in the event application filed by the assessee under VSVS fails to mature. It is further made clear that if the assessee /appellant seeks to restore the appeal in the event assessee’s declaration made under VSVS is not accepted, the Registry shall not insist for filing of application for condonation of delay, if the Miscellaneous Application for recalling the order is filed beyond time on account of delay in communication of outcome under VSVS. [Re. M/s. Nannusamy Mohan(HUF) vs. ACIT in T.C.A No.372 of 2020 decided on 16/10/2020 by Hon’ble Madras High Court].