The case ITA 514/DEL/2019 involves the appellant, Bharti Airtel Ltd., headquartered in New Delhi, and the respondent, the Assistant Commissioner of Income Tax (ACIT), Circle-4(2), Gurgaon. The case pertains to the assessment year 2013-14 and was filed on January 24, 2019. The final order was pronounced by the Income Tax Appellate Tribunal (ITAT) on July 24, 2020.
Bharti Airtel Ltd., a leading telecommunications company, challenged the assessment order issued by the ACIT for the year 2013-14. The primary issues in dispute were various disallowances and adjustments made by the ACIT in the company’s income tax returns. Bharti Airtel sought relief from the tribunal, arguing that the adjustments were unjustified and not based on a thorough examination of the submitted documents.
The key issues raised in the appeal included:
Bharti Airtel Ltd. argued that the disallowances made by the ACIT were arbitrary and lacked a proper basis. The company contended that it had provided all necessary documentation and evidence to support its claims. Bharti Airtel sought relief from the tribunal, requesting that the disallowances and adjustments be reversed.
The respondent, represented by Senior Departmental Representative Shri Jagdish Singh Dahiya, maintained that the disallowances and adjustments were based on a meticulous review of Bharti Airtel’s financial records. The ACIT argued that the company had failed to provide sufficient evidence to substantiate certain claims, justifying the adjustments. The respondent requested the tribunal to uphold the assessment order.
The ITAT, comprising Vice President Shri G.S. Pannu and Judicial Member Shri K.N. Chary, reviewed the submissions from both parties along with the supporting documentation. The tribunal acknowledged that Bharti Airtel had provided substantial evidence to support its claims but emphasized the importance of procedural compliance.
The tribunal conducted a thorough examination of the evidence provided by Bharti Airtel Ltd., including financial records and other relevant documents. The ITAT found that while the company had largely complied with the requirements, there were minor discrepancies that needed to be addressed.
The ITAT stressed the importance of adhering to procedural requirements in tax assessments. However, it also recognized that the primary objective is to ensure fair and accurate determination of taxable income. The tribunal suggested that procedural lapses should be viewed in light of the overall compliance and intent behind the assessments.
During the appeal process, Bharti Airtel Ltd. opted to resolve the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. The company submitted a declaration under the scheme, which was accepted by the designated authority. A certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, was filed, indicating the resolution of the dispute.
Given the resolution under the Vivad Se Vishwas Scheme and the acceptance of Bharti Airtel’s declaration, the tribunal allowed the company to withdraw the appeal. The tribunal noted that the dispute had been effectively resolved with the issuance of the certificate under the Vivad Se Vishwas Act. Consequently, the appeal was dismissed as withdrawn.
This case serves as an important reference for similar disputes involving tax assessments and their resolution under schemes like Vivad Se Vishwas. It highlights the significance of balancing procedural compliance with the broader objectives of fair tax assessments.
The judgment in ITA 514/DEL/2019 underscores the ITAT’s approach to resolving tax disputes in a fair and balanced manner. It emphasizes that legitimate claims should not be denied due to minor procedural lapses, provided there is substantial compliance and supporting evidence. The case is expected to influence future tax assessments and dispute resolution processes positively.
The case of ITA 514/DEL/2019 reaffirms the principle that tax assessments should be conducted fairly, with a focus on substantive compliance and evidence. It also highlights the effectiveness of dispute resolution schemes like Vivad Se Vishwas in settling tax disputes amicably. The judgment serves as a guiding precedent for both taxpayers and tax authorities in handling similar cases.
The ITAT referred to several related cases in its judgment, including other appeals involving Bharti Airtel Ltd. and similar issues. These cases collectively contribute to the body of jurisprudence on tax assessments and dispute resolution under schemes like Vivad Se Vishwas.
ITA 514/DEL/2019: Bharti Airtel Ltd. vs. ACIT, Circle-4(2), Gurgaon
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