The case of Arctic Refrigeration Pvt. Ltd. vs ACIT for the assessment year 2015-16 highlights the practical application of the Vivad Se Vishwas Scheme in resolving tax disputes. This article delves into the background, proceedings, and resolution of the case, emphasizing the scheme’s role in facilitating smoother tax dispute settlements.
Arctic Refrigeration Pvt. Ltd., located in Gurgaon, Haryana, filed an appeal against the order of the CIT(A)-1, Gurgaon, dated November 12, 2018. The case, filed on February 4, 2019, was brought before the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘B’.
The case was heard through video conferencing, presided over by Vice President Shri G.S. Pannu and Judicial Member Shri Kul Bharat. Despite the scheduling of the virtual hearing, no representative appeared on behalf of the appellant, Arctic Refrigeration Pvt. Ltd. However, the appellant submitted a letter requesting the withdrawal of the appeal, stating their decision to settle the dispute under the Vivad Se Vishwas Scheme, 2020.
A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also filed, confirming the settlement of the tax arrears for the assessment year in question.
The Senior Departmental Representative (DR), Shri R. K. Gupta, raised no objections to the withdrawal request. Consequently, the tribunal accepted the request and dismissed the appeal as withdrawn. The decision was pronounced in the open court on April 30, 2021, marking the conclusion of the case.
The Vivad Se Vishwas Scheme, introduced by the Indian government in 2020, 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 scheme provides a streamlined process for dispute resolution.
This case serves as an example of the scheme’s effectiveness in resolving longstanding tax disputes. The decision of Arctic Refrigeration Pvt. Ltd. to withdraw their appeal and opt for settlement under the scheme demonstrates the appeal of this alternative dispute resolution mechanism.
The ITAT’s acceptance of the withdrawal request and the subsequent dismissal of the appeal reflect the judiciary’s support for the scheme and its objectives. It also underscores the importance of taxpayers and tax authorities working collaboratively to resolve disputes in a more efficient and less adversarial manner.
The case of Arctic Refrigeration Pvt. Ltd. vs ACIT for the assessment year 2015-16, 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.
ITA 802/DEL/2019: Arctic Refrigeration Pvt. Ltd. vs ACIT – Settlement under Vivad Se Vishwas Scheme
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