ITAT Kolkata Dismisses Appeal as Assessee Opts for Amicable Settlement Under DTVSV Scheme 2024
Introduction
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) dismissed an appeal filed by the assessee after she voluntarily chose to settle her tax dispute under the Direct Tax Vivad Se Viswas (DTVSV) Scheme, 2024. The decision reflects the Tribunal’s recognition of the scheme’s intent to promote dispute resolution and reduce litigation.
Factual Background
The appeal was filed by Smt. Santhoshi Devi Soni against the order dated 31.07.2023 passed by the National Faceless Appeal Centre (NFAC) under Section 250 of the Income Tax Act, 1961, for the Assessment Year 2014–15. The matter was heard by a two-member bench consisting of Shri Sonjoy Sarma (Judicial Member) and Shri Rakesh Mishra (Accountant Member), and the hearing concluded on February 11, 2024.
Procedural Background
During the proceedings, R.K. Singh, Authorized Representative (AR) for the assessee, informed the Tribunal that the assessee had consciously decided to resolve the dispute under the Direct Tax Vivad Se Viswas Scheme, 2024. Accordingly, he requested permission to withdraw the appeal. On behalf of the Revenue, Manas Mondal, Additional Commissioner of Income Tax and Senior Departmental Representative (Sr. DR), raised no objection to this request, establishing mutual consent between both parties.
Issues
1. The primary issue before the Tribunal was whether the appeal could be dismissed as withdrawn once the assessee opted to settle the dispute under the DTVSV Scheme, 2024.
Contentions of the Parties
Assessee’s Contentions: The assessee decided to avail the benefits of the DTVSV Scheme, 2024, which allows taxpayers to resolve pending disputes by paying specified amounts. The AR sought permission to withdraw the appeal to proceed with the scheme’s settlement process.
Revenue’s Submissions: The Sr. DR, representing the Revenue, did not oppose the withdrawal request. The Revenue agreed that the appeal may be treated as withdrawn in view of the scheme’s applicability.
Reasoning and Analysis
The Tribunal acknowledged the assessee’s decision to resolve the dispute under the DTVSV Scheme, 2024, recognizing that such an initiative aligns with the government’s objective to provide certainty to taxpayers and reduce the burden of litigation on appellate authorities.
The Bench noted that since both parties were in agreement and no objection was raised by the Revenue, there was no impediment to dismissing the appeal as withdrawn. The Tribunal also highlighted that the DTVSV Scheme serves as an effective alternative dispute resolution mechanism, fostering tax compliance and judicial efficiency.
Decision
In view of the above, the ITAT dismissed the appeal as withdrawn, thereby allowing the assessee to settle her tax dispute under the Direct Tax Vivad Se Viswas Scheme, 2024. The proceedings were thus concluded with the order dated February 11, 2024.
Implications
The decision underscores the judiciary’s encouragement toward dispute resolution mechanisms like the DTVSV Scheme, which aim to reduce prolonged litigation and promote voluntary compliance among taxpayers. The decision also exemplifies cooperative conduct between taxpayers and tax authorities in embracing alternative settlement frameworks.