ITAT dismisses Revenue’s Appeal as Assessee Settles Dispute under Vivad Se Vishwas Scheme, 2024

ITAT dismissed the revenue department's appeal after the assessee settled the dispute under the Vivad se Vishwas Scheme 2024, holding that such settlements attain finality. The bench ruled that once a taxpayer pays the determined amount under the scheme, the department cannot continue litigation on the same issues. The case involved ₹3.2 crore addition for unexplained cash credits which the assessee settled by paying ₹2.1 crore under the scheme. This reinforces the government's policy of reducing litigation through dispute resolution mechanisms. The judgment provides certainty to taxpayers who opt for settlement schemes, ensuring they receive promised litigation closure. Tax authorities must now withdraw all pending appeals in cases where assessees have availed the scheme, freeing up judicial resources for contentious matters.