Case Number: ITA 871/DEL/2020
Appellant: Swatch Group (India) Pvt. Ltd., New Delhi
Respondent: ACIT, Circle-22(2), New Delhi
Assessment Year: 2012-13
Result: Appeal withdrawn under the Vivad Se Vishwas Scheme
Case Filed on: 2020-02-20
Order Type: Final Tribunal Order
Date of Order: 2021-04-15
Pronounced on: 2021-04-15
This case involves the appellant, Swatch Group (India) Pvt. Ltd., New Delhi, contesting an order by the Assistant Commissioner of Income Tax (ACIT), Circle-22(2), New Delhi, for the assessment year 2012-13. The dispute was resolved through the Vivad Se Vishwas Scheme, leading to the withdrawal of the appeal.
The Swatch Group (India) Pvt. Ltd. is a subsidiary of the Swatch Group, a renowned Swiss watch manufacturer. The case concerns the company’s income tax assessments for the year 2012-13. Initially, the assessment was disputed by the appellant, leading to the filing of an appeal with the Income Tax Appellate Tribunal (ITAT), Delhi.
The appeal was filed on 20th February 2020, challenging the order issued by the CIT(A)-43, New Delhi, dated 23rd December 2019. The appellant’s main contention was related to the tax arrears assessed for the year 2012-13.
On 16th February 2021, the appellant submitted a letter requesting the withdrawal of the appeal, opting to settle the dispute under the Vivad Se Vishwas Scheme, 2020. This scheme, introduced by the Indian government, allows taxpayers to resolve their pending tax disputes by paying the disputed tax amount with certain reliefs and immunities from prosecution.
The tribunal proceedings were conducted through video conferencing, presided over by Shri G.S. Pannu, Vice President, and Shri Kul Bharat, Judicial Member. The hearing took place on 15th April 2021.
During the hearing, Ms. Shubhangi Arora, the Authorized Representative (AR) for the appellant, confirmed the withdrawal request. She provided a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming that the appellant had opted to settle the dispute.
The Senior Departmental Representative (DR), Sh. R. K. Gupta, raised no objections to the withdrawal request.
Based on the submissions and the certificate provided, the tribunal accepted the withdrawal request. The appeal filed by the assessee was dismissed as withdrawn.
The order was pronounced on the same day, 15th April 2021, concluding the virtual hearing in the presence of both parties.
This case exemplifies the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes efficiently. By opting for this scheme, Swatch Group (India) Pvt. Ltd. could settle its tax arrears for the assessment year 2012-13 without prolonged litigation, demonstrating a pragmatic approach to dispute resolution.
The tribunal’s decision to dismiss the appeal as withdrawn underscores the scheme’s role in alleviating the backlog of pending cases in the income tax system, benefiting both taxpayers and the tax authorities.
The detailed order reflects the procedural adherence and transparency maintained during the virtual hearing, ensuring that justice was served despite the constraints posed by the COVID-19 pandemic.
Overall, the case highlights the importance of schemes like Vivad Se Vishwas in promoting a fair and efficient tax administration system in India.
1. Income Tax Appellate Tribunal Order, ITA 871/DEL/2020.
2. The Direct Tax Vivad Se Vishwas Act, 2020.
3. Government of India – Ministry of Finance Circulars on Vivad Se Vishwas Scheme.
4. Official records and submissions from Swatch Group (India) Pvt. Ltd.
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