ITA No. 730/Del/2020 represents a significant instance in Indian tax jurisprudence where the appellant, Yash Pal Singh, acting as the legal heir of late Sh. Shamsher Singh, opted to settle a tax dispute under the Direct Tax Vivad Se Vishwas Act, 2020. This case, filed on February 10, 2020, with the final order pronounced on April 19, 2021, demonstrates the practical application of the scheme designed to reduce litigation in the Indian tax system.
Yash Pal Singh contested the order from the Learned CIT(A)-5, Ludhiana, regarding the assessment year 2010-11. However, before the case could proceed to a detailed trial, it was decided that the matter would be settled through the Vivad se Vishwas scheme, which aims to provide a mechanism for the resolution of pending tax disputes across India.
The scheme was introduced by the Indian government as part of its broader efforts to reduce litigation and facilitate taxpayers by providing them with a one-time opportunity to settle disputes without any penalty or interest. It requires the filing of a declaration and the issuance of a certificate from the department to confirm the settlement.
In this particular case, Yash Pal Singh’s application for withdrawal of the appeal based on the settlement under the Vivad se Vishwas scheme was accepted. This allowed for an expedited resolution process, which was notably uncontested by the senior departmental representative during the hearing. The appeal was officially withdrawn, marking a successful resolution of the dispute.
The resolution of the case under the Vivad se Vishwas scheme highlights the potential benefits of such initiatives in reducing the backlog of cases and providing a straightforward path to dispute resolution. It also sets a precedent for other taxpayers considering this option for resolving their disputes with tax authorities.
Settlement through Vivad se Vishwas: The Case of Yash Pal Singh vs ITO (ITA 730/DEL/2020)
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