Case Law Details
Padmash Leathers and Exports Pvt. Ltd. Vs ITO (ITAT Chennai)
Income Tax Appellate Tribunal (ITAT) Chennai dismissed the appeal of Padmash Leathers and Exports Pvt. Ltd. after the assessee opted for the Vivad-se-Vishwas Scheme (VSV) 2024. The case pertained to Assessment Year 2014-15 and challenged an order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. The assessee submitted Form 1 DTVSV 2024 to settle the tax dispute under the scheme, making the appeal redundant.
The assessee’s representative, Shri S. Sunil Kumar, informed the Tribunal that all due taxes had been paid under the scheme and requested that the appeal be treated as infructuous. The Department’s representative, Smt. Samantha Mullamudi, did not object to the withdrawal of the appeal. Considering the circumstances, the Tribunal dismissed the appeal, stating that no further adjudication was necessary.
The Vivad-se-Vishwas Scheme 2024 was introduced to resolve pending tax disputes by allowing taxpayers to settle liabilities with reduced penalties and interest. An appeals become infructuous once a taxpayer opts for a settlement scheme. The ITAT reiterated that the assessee retains the right to approach the Tribunal if any issues arise during the settlement process.
This ruling aligns with previous decisions where courts and tribunals have dismissed appeals once the taxpayer has chosen to resolve disputes through similar schemes. The dismissal reinforces the purpose of the VSV scheme, which aims to reduce litigation and expedite tax dispute resolution.
The Tribunal pronounced its order in open court on December 12, 2024. This decision serves as a reminder that taxpayers opting for dispute resolution schemes should ensure compliance with procedural requirements to avoid any future legal complications.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal filed by the assessee is directed against the order dated 14.03.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2014-15.
2. At the outset, the ld. AR Shri S. Sunil Kumar, CA submits that the assessee has opted to avail the Vivad-se-Vishwas Scheme 2024 and filed an application along with Form 1 DTVSV 2024, which was submitted before the Designated Authority to settle the disputed tax. He further submits that all taxes due are paid and prayed that the appeal filed by the assessee may be treated as infructuous.
3. The ld. DR Smt. Samantha Mullamudi, Addl. CIT did not oppose to the submissions of the ld. AR.
4. Having heard both the parties, we note that the assessee opted for the Vivad-se-Vishwas Scheme 2024 and filed Form 1 DTVSV 2024 vide acknowledgement No. 749364250111224 for the settlement of pending tax dispute and the same is placed on record. In view of the above facts and circumstances, the appeal filed by the assessee is liable to be dismissed as infructuous. However, it is open to the assessee to approach the Tribunal by filing an appropriate application in the event of any prejudice caused in respect of the settlement of tax dispute under the Vivad-se-Vishwas Scheme 2024. Thus, the appeal filed by the assessee is dismissed as infructuous.
5. In the result, the appeal filed by the assessee is dismissed.
Order pronounced in the open Court on 12th December, 2024 at Chennai.
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