HUF's Share Transaction Dispute Concluded as ITAT Accepts Vivad Se Vishwas Settlement [Read Order]

The Income Tax Appellate Tribunal (ITAT) has dismissed an appeal filed by Karta of Hindu Undivided Family (HUF) after accepting the settlement of a long-pending tax dispute under the Direct Tax Vivad se Vishwas Scheme, 2024. The case involved additions of Rs. 84.85 lakh made by tax authorities regarding long-term capital gains (LTCG) from share transactions claimed as exempt under Section 10(38) of the Income Tax Act, 1961.

Raghav Agarwal (HUF) had challenged a reassessment order for the 2015-16 financial year, where the Income Tax Department had treated LTCG (Long Term Capital Gains) of Rs. 84,85,078 as unexplained cash credits under Section 68. The assessee contended that the reopening of assessment was invalid, arguing that the reasons recorded were vague and based on borrowed satisfaction without independent inquiry. The Commissioner of Income Tax (Appeals) had upheld the additions, prompting the appeal before the ITAT.

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During the hearing, the assessee's counsel submitted that the dispute had been resolved under the Vivad se Vishwas Scheme, 2024, and requested withdrawal of the appeal. A letter dated January 21, 2025, along with Form No. 04 issued by the Principal Commissioner of Income Tax (PCIT), Kanpur, was presented as proof of settlement. The Departmental Representative raised no objection to the withdrawal. The ITAT bench, comprising Kul Bharat (Vice President) and Anadee Nath Misshra (Accountant Member), permitted the withdrawal of the appeal while granting liberty to the assessee to seek restoration if the settlement failed. The tribunal did not examine the merits of the case, as the matter had been resolved through the government's dispute resolution scheme.

To Read the full text of the Order CLICK HERE

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