This case analysis presents an exhaustive review of the legal proceedings and resolution under the ITA No. 1026/DEL/2020, where Venkatesh Coke & Power Ltd, a New Delhi-based corporation, contested tax claims by the Income Tax Officer of Ward-26(2). Filed on March 11, 2020, this case marks a significant examination of the complexities within tax litigation and the resolution avenues provided by the Indian legal system.
Venkatesh Coke & Power Ltd, located at C-23, Mathura Road, Friends Colony, East, New Delhi, challenged multiple assessment orders relating to the fiscal years 2012-13 to 2014-15. Initially confronted with adverse rulings from CIT (A)-13, CIT(A)-42, and CIT(A)-9, the company sought judicial relief to mitigate substantial financial implications stemming from these assessments.
The tribunal hearings, conducted via video conferencing due to pandemic restrictions, were overseen by Shri G.S. Pannu, Vice President, and Shri Kul Bharat, Judicial Member of the Income Tax Appellate Tribunal. Despite the company’s absence at the hearings, a significant turn of events was marked by their decision to withdraw the appeals. This strategic move was influenced by the company’s choice to opt into the ‘Vivad Se Vishwas’ scheme, a government initiative aimed at reducing litigation in direct taxes.
The ‘Vivad Se Vishwas’ scheme, introduced by the Indian government, offers a framework for settling disputes relating to direct taxes. It aims to provide a non-adversarial mechanism to resolve pending litigations and allows taxpayers to settle tax disputes by paying a portion of the disputed amounts. This scheme not only alleviates the burden on the judiciary but also provides relief to taxpayers by ending prolonged disputes.
On March 3, 2021, the tribunal accepted Venkatesh Coke & Power Ltd’s request to withdraw the appeals under the scheme. The Senior DR did not object to this withdrawal, leading to a dismissal of the appeals as withdrawn. This resolution not only highlighted the effectiveness of alternative dispute resolution mechanisms but also set a precedent for other corporate entities grappling with similar tax challenges.
This case serves as a crucial reference point for understanding the strategic use of legal tools for dispute resolution. The application of the ‘Vivad Se Vishwas’ scheme in this instance provides valuable insights into its practical implications and effectiveness in reducing the backlog of cases and facilitating a smoother resolution process.
Resolution of Venkatesh Coke & Power Ltd’s Tax Dispute Under Vivad Se Vishwas, ITA 1026/DEL/2020
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