The case of Naresh Rustagi vs. Income Tax Officer, Ward-42(3), New Delhi, indexed under case number ITA 707/DEL/2020, highlights a significant development in the realm of tax litigation. Filed on February 7, 2020, this appeal for the assessment year 2015-16, addresses grievances against the order of the CIT(A)-43, New Delhi, which was initially delivered on December 26, 2019.
The appellant, Naresh Rustagi, a resident of Delhi, engaged in a legal dispute regarding tax assessments made for the financial year corresponding to the assessment year 2015-16. The primary issues revolved around discrepancies in tax calculations and subsequent demands made by the Income Tax Department.
The proceedings of the case took a noteworthy turn during the virtual hearing on August 31, 2021. Despite the absence of the appellant, a request for withdrawal of the appeal was submitted. This request was backed by the decision to opt for the Vivad Se Vishwas Scheme, 2020, a governmental initiative aimed at reducing litigation and providing a straightforward mechanism for settling tax disputes.
An official certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, substantiated the appellant’s decision, marking a pivotal moment in the case’s resolution.
The bench, consisting of Vice President Shri G.S. Pannu and Judicial Member Ms. Suchitra Kamble, after hearing the Senior DR who raised no objection, accepted the withdrawal request. Consequently, the appeal was dismissed as withdrawn, leading to the termination of ongoing litigation related to the assessment year in question.
The closure of ITA 707/DEL/2020 under the Vivad Se Vishwas Scheme illustrates the impact of alternative dispute resolution mechanisms in tax litigation. It underscores the government’s commitment to reducing pending cases and facilitating a smoother fiscal relationship between taxpayers and the authorities.
This case serves as a reference point for similar disputes, offering insights into the strategic decisions made by taxpayers when confronted with prolonged legal battles over tax issues.
The dismissal of Naresh Rustagi’s appeal signifies a move towards more pragmatic and less adversarial tax dispute resolutions. This case not only reflects the changing dynamics of tax litigation in India but also highlights the effectiveness of schemes like Vivad Se Vishwas in fostering compliance and reconciliation.
Naresh Rustagi Settles Tax Arrears Under Vivad Se Vishwas Scheme: ITA 707/DEL/2020
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