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.
