Huawei Telecommunications (India) Private Limited Vs ACIT (ITAT Delhi)
Huawei Telecommunications (India) Private Limited filed appeals before the Income Tax Appellate Tribunal (ITAT) Delhi, challenging orders dated November 8, 2023, passed by the Commissioner of Income Tax (Appeals)-23, New Delhi, for Assessment Years 2021-22 (Quarter 2 & 3) and 2022-23 (Quarter 2 & 3). Subsequently, the assessee submitted a letter dated February 7, 2025, seeking to withdraw these appeals. The stated reason for the withdrawal was that Huawei Telecommunications (India) had opted to avail the benefits of the ‘Direct Tax Vivad se Vishwas Scheme, 2024’ (VSV). The company further informed the ITAT that Form No. 1 and 2, which are part of the scheme’s process, had already been issued. Additionally, in their withdrawal request, the assessee sought the liberty to continue pursuing litigation on the same issue for other assessment years, indicating that while these specific appeals were being withdrawn under the VSV scheme, the underlying dispute might persist for different periods.
The Learned Departmental Representative (DR) raised no objection to Huawei Telecommunications (India)’s request for withdrawal of the appeals. Acknowledging the assessee’s submission regarding their participation in the Direct Tax Vivad se Vishwas Scheme, 2024, the ITAT Delhi proceeded to dismiss the appeals as withdrawn. However, the Tribunal also granted the assessee the liberty to seek restoration of these appeals should their application under the DTVSV-2024 scheme fail for any reason. This provision ensures that Huawei Telecommunications (India) retains the option to revive the appeals if their attempt to resolve the matter through the VSV scheme is unsuccessful. Furthermore, the ITAT clarified that the dismissal of the present appeals would not impede the assessee’s right to continue litigation on the same issue for other Assessment Years, thus accommodating their request to keep those avenues open. In conclusion, the ITAT Delhi dismissed the appeals filed by Huawei Telecommunications (India) Private Limited as withdrawn, while providing a conditional liberty for restoration and preserving their right to litigate the same issue for different assessment periods.
