Rakesh Kumar Vs ITO (ITAT Raipur)
The Income-Tax Appellate Tribunal (ITAT), Raipur Bench, in the case of Rakesh Kumar vs. ITO, dismissed an appeal for the Assessment Year 2014-15 as withdrawn after the appellant, Rakesh Kumar, opted to resolve the dispute under the Vivad Se Vishwas Scheme, 2024 (VSVS 2024).
Case Summary and Holding
The appeal was filed against an order by the Commissioner of Income-Tax (Appeals), NFAC, Delhi, which arose from a penalty order under Section of the Income-tax Act, 1961.
The core issue before the ITAT was the assessee’s application, filed via a letter dated January 13, 2025, declaring his decision to settle the matter through the VSVS 2024. The assessee submitted Form-1 as proof of initiation under the Direct Tax Vivad Se Vishwas 2024 (DTVSV 2024) and requested an adjournment pending the issuance of Form-2 by the designated authority.
The Tribunal, however, declined the adjournment. Instead, it deemed it appropriate to dismiss the appeal as withdrawn, acknowledging that the assessee had initiated the process to settle the litigation under VSVS-2024, thereby negating the need for an adjudication on merits. The Senior Departmental Representative offered no objection to the withdrawal.
Judicial Precedent and Observation
While no direct judicial precedent was cited by name, the ITAT’s order established a crucial condition for the withdrawal. The Tribunal explicitly granted liberty to the assessee to seek restoration of the appeal should the designated authority fail to pass the order for full and final settlement of tax arrears in Form 4. This observation ensures that the assessee’s right to appeal is protected in the event the VSVS settlement process does not conclude successfully. Consequently, the appeal was dismissed as withdrawn subject to this liberty.
