Dismissal of Appeal after filing Vivad Se Vishwas Scheme 2020 before receiving Form 3 from Dept: ITAT gives Assessee Liberty to recall Dismissal Order [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT), while dismissing an appeal by the assessee in view of filing Vivad Se Vishwas Scheme 2020, stated that the assessee can recall the dismissal order since considering the fact that form 3, confirming the pending tax amount calculated by the assessee is yet be issued by the department.

Aggrieved by the penalty order of the income tax department under section 271(1)(c) of the Income Tax Act, the assessee approached the Tribunal in appeal.

During the proceedings before the Tribunal, the assessee submitted a letter with the Tribunal stating that they filed Form 1 and 2 under The Direct Tax Vivad Se Vishwas Act on 30-05-2020 with respect to the appeals and is waiting for Form 3. It was also submitted that once, Form-3 is issued, they will be withdrawing the above appeals filed before the Tribunal.

It was argued on behalf of the assessee that Form no.3 shall be issued to the assessee in due course and accordingly, they have to withdraw the pending appeals after filing Form VSV1 as per Vivad Se Vishwas Scheme 2020.

The assessee, on the other hand, contended that the assessee has stated that he has not received Form no.3, in which the tax amount to be paid by the assessee shall be intimated by the department.

The Tribunal, while dismissing the order, held that “hence the assessee has sought adjournment till the time Form no.3 is received from the department, meaning thereby, the assessee wants to make sure that the tax liability mentioned by him in Form no.1 should get confirmed by the revenue. Under these set of facts, since we have dismissed the appeals, the assessee is given liberty to move an appropriate application for recall of the present order in accordance with the law, if the assessee intends to do so.”