Nikhil Commosales Pvt. Limited Vs ITO (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT) Kolkata has dismissed the appeal filed by Nikhil Commosales Pvt. Ltd. against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi. The appeal pertains to the Assessment Year 2013-14. During the hearing, the assessee’s representative informed the tribunal that an application under the Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSVS 2024) had already been filed on December 28, 2024. In light of this, the assessee requested an adjournment of the appeal proceedings.
The Departmental Representative opposed the adjournment request, arguing that the appeal should be dismissed by upholding the CIT(A)’s order. Considering the submissions from both sides, the tribunal decided to dismiss the appeal with a liberty to revive it if the assessee’s application under the Vivad Se Vishwas Scheme (VSVS-24) is unsuccessful. This provides the assessee with an opportunity to pursue the appeal in case the settlement under the scheme does not materialize.
The Vivad Se Vishwas Scheme, 2024, introduced as a dispute resolution mechanism, allows taxpayers to settle pending litigation by paying a prescribed percentage of the disputed tax amount. This scheme aims to reduce tax litigation and ease the compliance burden on taxpayers. However, if an application under the scheme is rejected or unresolved, the applicant may be allowed to pursue legal remedies. The ITAT’s order aligns with earlier judicial precedents where appeals have been dismissed with liberty to restore if the resolution under a settlement scheme fails.
