The case of JSD Steel P. Ltd. (formerly known as CBS Steel (P) Ltd.) vs ACIT for the assessment year 2014-15 highlights the resolution of tax disputes under the Vivad Se Vishwas Scheme. This article delves into the background, legal proceedings, and the final resolution of the case, showcasing the scheme’s impact on settling tax arrears.
JSD Steel P. Ltd., based in New Delhi, filed an appeal against the order of the CIT(A)-2, New Delhi, dated November 28, 2018. The appeal was registered as ITA 803/DEL/2019 and was filed on February 4, 2019. The case was heard by the Delhi Bench ‘C’ of the Income Tax Appellate Tribunal (ITAT).
The hearing was conducted through video conferencing on July 12, 2022. The tribunal was presided over by Accountant Member Shri N. K. Billaiya and Judicial Member Shri N.K. Choudhry. Despite the scheduled hearing, no representative appeared on behalf of the appellant, JSD Steel P. Ltd.
However, prior to the hearing, the appellant had submitted a letter dated July 11, 2022, requesting permission to withdraw the appeal. The letter indicated that the dispute had been settled under the Vivad Se Vishwas Scheme, 2020. The scheme, introduced by the Indian government, aims to reduce the volume of pending litigation related to direct taxes by allowing taxpayers to settle disputes by paying the tax amount and receiving waivers on interest and penalties.
The Senior Departmental Representative (DR), Ms. Aashna Paul, had no objection to the withdrawal request. The tribunal noted the contents of the application and accepted the request, thereby dismissing the appeal as withdrawn. The decision was announced in the open court on July 12, 2022.
The Vivad Se Vishwas Scheme plays a significant role in facilitating the resolution of tax disputes. By opting for this scheme, taxpayers like JSD Steel P. Ltd. can settle their disputes more efficiently, avoiding prolonged litigation and reducing the burden on the judiciary. The scheme offers a pragmatic approach to resolving tax arrears, benefiting both the taxpayers and the tax authorities.
This case exemplifies the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. The decision of JSD Steel P. Ltd. to withdraw their appeal and settle the dispute under the scheme underscores the appeal of this alternative dispute resolution mechanism. The tribunal’s acceptance of the withdrawal request and subsequent dismissal of the appeal reflect the judiciary’s support for the scheme and its objectives.
The case of JSD Steel P. Ltd. vs ACIT for the assessment year 2014-15, concluded with the withdrawal of the appeal under the Vivad Se Vishwas Scheme, highlights the scheme’s role in facilitating the resolution of tax disputes. This case study underscores the benefits of opting for the scheme, including reduced litigation and a more streamlined resolution process. As more taxpayers and businesses consider this option, it is likely to contribute to a more efficient and collaborative tax administration system in India.
The final judgment in this case was delivered by the ITAT Delhi Bench ‘C’ on July 12, 2022. The tribunal, consisting of Accountant Member Shri N. K. Billaiya and Judicial Member Shri N.K. Choudhry, accepted the appellant’s request to withdraw the appeal following the settlement under the Vivad Se Vishwas Scheme. The decision was pronounced in the open court, marking the conclusion of the case.
This case is a testament to the impact of the Vivad Se Vishwas Scheme on the Indian tax system, promoting faster and more amicable resolutions of tax disputes. It demonstrates the importance of alternative dispute resolution mechanisms in reducing the backlog of cases and fostering a more cooperative relationship between taxpayers and the tax authorities.
ITA 803/DEL/2019: JSD Steel P. Ltd. vs ACIT – Settlement under Vivad Se Vishwas Scheme
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