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Query asked by Siddesh on August 9, 2020

Re: Appeal before CIT is dismissed in the month of Aug 2020. VSVS THEREAFTER

Appeal before CIT is dismissed in the month of Aug 2020. Can we file VSVS thereafter and is it vaild..?

As we understand, you had an appeal pending on the specified date under VSVA. Pursuant thereto, the CIT dismissed the Appeal in the month of August 2020.

As the appeal is dismissed . The appeal is not pending when you file an application under VSVS hence may not be eligible .  One has to find out whether appeal is dismissed on merits or for not appearing before the office of the CIT (A) on the appointed date . As per the law  even in ex party order the CIT (A) has to decide on merit as held in  CIT (Central) v. Premkumar Arjundas Luthra (HUF) [2016] 240 Taxman 133 (Bom.) (HC), Swati Pawa (Ms.) v. DCIT [2019] 175 ITD 622 (Delhi.) (Trib) and HV Metal ARC (P.) Ltd. v. ACIT [2018] 173 ITD 606 (Delhi) (Trib). It is desirable to file an appeal before the Appellate Tribunal and make an application for early hearing . The Honourbale Tribunal may set aside the appeal to the file of CIT (A) and direct him  to decide on merits . When the matter is set aside it relates back to the date of filing of appeal  and  the assessee can avail the benefit of the scheme .

 

In case the CIT (A) has decided the matter on merits .It is advisable to file an appeal before the Appellate Tribunal , taking specific  grounds of natural justice and also make an application before the Appellate Tribunal for an early hearing . The Appellate Tribunal may set aside the matter to the file of CIT (A) to give one more opportunity of hearing .    When the appeal is  set aside it relates back to the date of filing of appeal  and  the assessee can avail the benefit of the scheme .


 

5 comments on “Appeal before CIT is dismissed in the month of Aug 2020. VSVS THEREAFTER
  1. Lakshmichand Nahata says:

    We had a case before ITAT during earlier scheme, DTDRS. The case was sent back to the file of CIT Appeals. But CIT-A did not consider it for DTDRS, as it gets the new case number and the same did not had continuity with old CIT-A number. Hence it was considered after the CUT-OFF date and case was not considered for Direct Tax Dispute Resolution Scheme.

  2. Srinivas says:

    My ITAT appeal was pending as on specified date. In Sep I got an unfavorable order by the ITAT on merit. Am I eligble to VsV to save penalty and interest as the rules prescribe that the appeal should be pending as on specified date and did not envisage a situation when VsV scheme got extended and lot of appeals will be adjusidicated between Jan 31 2020 and 31 Dec 2020.

    • CA. Rajesh Mehta Indore says:

      Yes if appeal is dismissed in Aug., 2020 (i.e. even if dismissed on or before 31-12-2020) assessee is eligible to opt for Vivad Se Vishwas scheme because appeal was pending on 31st Jan., 2020.

    • CA. Rajesh Mehta Indore says:

      Yes You can opt for VSV if appeal dismissed after 31st Ja. 2020

  3. CA. Rajesh Mehta Indore says:

    Yes if appeal is dismissed in Aug., 2020 (i.e. even if dismissed on or before 31-12-2020) assessee is eligible to opt for Vivad Se Vishwas scheme because appeal was pending on 31st Jan., 2020.

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