Issue No. 225 / February 23rd, 2021

The ongoing Vivad se Vishwas scheme, 2020 which was introduced with an aim to reduce pending direct taxes litigations, is very beneficial to both the taxpayers and the Revenue. One of the eligibility criteria for the scheme is that an appeal in case of the taxpayer is ‘pending’ at any appellate forum (CIT(A), ITAT, High Court, Supreme Court) as on 31st January, 2020 or the time limit for filing such an appeal had not expired as on 31st January, 2020. However, in practicality, there are many taxpayers who had not filed an appeal in time before 31st January, 2020 but thereafter desire to opt for the scheme. In such cases, the taxpayers have approached the Courts pleading a condonation of delay in order to enable them to opt for the scheme.  Considering the benefits of the scheme to both the taxpayers and the Revenue, the Courts in many occasions have been liberal and granted the condonation of delay in filing an appeal and thereafter allowed the assessee to withdraw the same to enable the taxpayers to approach for the Vivad se Vishwas scheme, 2020. 

We, at Taxsutra Database, have made an attempt to collate a few such recent rulings and believe that it will act as a useful aid to our readers. 

1) ITAT admits assessee's appeal condoning delay of 1000+ days as a 'special case', in order to enable the assessee to go for the Vivad se Vishwas Scheme (VsVs); ITAT notes that though the reason given by the assessee for filing the appeal is neither convincing nor satisfactory, since the assessee intends to go for VsVs and pay the resulting taxes and put an end to..............Click here to read and download ITAT order

2) HC: Allows assessee's writ challenging Miscellaneous Application dismissed by ITAT, directs restoration to original number considering assessee's VSVS route undertaking – HC holds that ITAT cannot reject Miscellaneous Application (MA) against ex-parte final order even if decided on merits, merely on the ground that the assessee had sought frequent adjournments before the matter was finally heard; Sets aside ITAT order passed in MA and restores to its original number in view of the undertaking given by the assessee that it would apply under the ‘Vivad Se Vishwas’ Scheme (VsVs) in the event the appeal is restored to its original number.........Click here to read and download HC Judgment copy

3) HC condones delay in appeal filing, adjourns case in view of assessee’s desire to apply under the VsVS – HC condones a delay of 280 days in filing of appeal by Revenue; Also, accepts assessee`s request to adjourn the main appeal considering its wish to file an application for settlement of disputes under the Vivad Se Vishwas Scheme, 2020; Adjourns the case to May 19, 2021....... Click here to read and download HC order copy

4) ITAT condones delay in appeal filing, allows appeal withdrawal in view of assessee’s wish to settle dispute under VsVS - ITAT condones a delay of 460+ days in filing of appeal by assessee, considers assessee’s submission that he has decided to settle the dispute under Vivad Se Vishwas Scheme, 2020 and therefore, the appeal be admitted so that the assessee may avail the benefit of the same............... Click here to read and download ITAT order

5) ITAT condones delay in appeal filing, allows appeal withdrawal in view of assessee’s bonafide attempt to avail the VsVS - ITAT condones a delay of 100+ days in filing of appeal by assessee, notes that though the delay is not due to appropriate and convincing reasons however, considering the bonafide attempt of the assessee to avail the scheme, condones the delay of 118 days in the filing the appeal..............Click here to read and download ITAT order 

Note: Taxsutra Database Insight on “Amnesty Scheme” 

1) Taxsutra Database Insight - Admitted and Pending - Amnesty Scheme - Interpretation of the word "Admitted and Pending" - Part 1 – Click here to read 

2) Taxsutra Database Insight: Amnesty Scheme - Effect of Pendency of Assessee and Departmental Appeal - Disputed Tax and Tax Arrears – Part 2 – Click here to read 

3) Taxsutra Database Insight: Revised Avatar of ‘Vivad Se Vishwas’ – Part 3 – Click here to read