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.
By providing the liberty to revive the appeal, ITAT Kolkata ensures that the assessee is not deprived of their right to appeal while also preventing unnecessary parallel litigation during the pendency of the settlement process. This decision emphasizes the tribunal’s approach in balancing judicial efficiency with the taxpayer’s right to due process. The order was pronounced in open court on January 10, 2025.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 24th September, 2024 passed for Assessment Year 2013-14.
2. It was the submission of Shri J.M. Thard, Advocate on behalf of the assessee vide letter dated 6th January, 2025 that the assessee has already gone into Direct Tax Vivad Se Vishwas Scheme, 2024 (‘DTVSVS 2024’ Scheme) by filing Declaration in Form No. 1 under the Direct Tax Vivaad Se Vishwas Scheme, 2024 on 28.12.2024, with the Competent Authority and therefore, prayed before the Bench that the assessee may be allowed to adjourn the hearing of the appeal for the time being.
3. On the other hand, ld. Departmental Representative argued that the matter be dismissed by upholding the order of ld. CIT(Appeals).
4. I have heard the rival submissions and perused the material available on record. By considering the totality of the facts and circumstances of the case, I dismiss the appeal of the assessee with the liberty to the assessee to get the appeal revived by filing necessary miscellaneous application if the assessee is not successful in the VSVS-24, for any reason, whatsoever.
5. In the result, the appeal of the assessee is dismissed.
Order pronounced in the open Court on 10/01/2025.
