One of the Direct Tax Vivad Se Vishwas (DTVSV) Scheme’s key conditions is that the assessee must withdraw all pending appeals before any appellate forum, signifying their intention to resolve the matter through this settlement mechanism. In this case, the assessee opted for the DTVSV scheme, prompting the Income Tax Appellate Tribunal (ITAT) to dismiss the appeal as withdrawn, as the taxpayer no longer sought to pursue the dispute through the regular appellate route.
However, the ITAT provided a safeguard for the assessee, allowing the appeal to be reinstated if the application under the DTVSV scheme was not accepted due to non-fulfillment of its terms or rejection by the authorities. This provision ensures that the assessee retains the option to revive the appeal and continue litigation if the settlement fails, maintaining fairness and flexibility in the resolution process