The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT) dismissed the appeal filed by the assessee following a request for withdrawal due to the application under the Vivad Se Vishwas Scheme 2024.
Nihar Prabhatbhai Desai, appellant-assessee, challenged the order passed by the Commissioner of Income Tax (Appeals)[CIT(A)], National Faceless Appeal Centre (NFAC), dated 19.09.2023, against the assessment order issued under section 143(3) of the Act, , for the Assessment Year(AY) 2020-21.
Direct Tax – Vivad se Vishwas Scheme – Click here
Section 143(3) of the Act deals with the scrutiny assessment process. It allows the Assessing Officer (AO) to verify the accuracy of the income tax return filed by a taxpayer. The process starts with a notice under Section 143(2), and the AO may ask for documents or explanations about income, deductions, or exemptions.
Based on the findings, the AO can accept the return or make changes, such as adjusting income, disallowing claims, or imposing penalties if issues are found. The assessment must be completed within the time limits set by law, usually 12 months from the end of the assessment year for recent cases.
Direct Tax – Vivad se Vishwas Scheme – Click here
During the proceedings, the assessee’s counsel requested permission to withdraw the appeal. The counsel informed the court that the assessee was in the process of filing an application under the Vivad Se Vishwas Scheme 2024.
The Vivad Se Vishwas Scheme 2024 aims to resolve tax disputes by offering a one-time settlement opportunity. It allows taxpayers to settle cases pending at various appellate levels by paying the principal tax amount while waiving interest and penalties. However, cases involving serious fraud or undisclosed foreign income/assets are excluded.
Direct Tax – Vivad se Vishwas Scheme – Click here
Taxpayers must apply within the notified timeframe, following a simple process that includes application submission, confirmation by tax authorities, payment of the determined amount, and resolution of the dispute. This scheme promotes trust, reduces litigation, and enhances revenue collection.
The two member bench comprising T.R.Senthil Kumar(Judicial Member) and Annapurna Gupta(Accountant Member) after considering the submission made by the assessee’s counsel, allowed the request for withdrawal.
In short,the appeal filed by the assessee was dismissed as withdrawn.
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