Case Number: ITA 1535/DEL/2020
Appellant: ACIT Circle-12(1), New Delhi
Respondent: Indian Strategic Petroleum Reserves Ltd, Noida
Assessment Year: 2013-14
Result: Settlement under the Direct Tax Vivad Se Vishwas Act, 2020
Case Filed On: 2020-09-01
Order Type: Final Tribunal Order
Date of Order: 2022-11-02
Pronounced On: 2022-11-02
The case of ACIT Circle-12(1) vs Indian Strategic Petroleum Reserves Ltd pertains to a taxation dispute for the assessment year (AY) 2013-14. This appeal, filed by the Revenue, was heard by the Income Tax Appellate Tribunal (ITAT) Delhi ‘C’ Bench, consisting of Sh. Anil Chaturvedi, Accountant Member, and Sh. Anubhav Sharma, Judicial Member. The primary issue revolved around the settlement of tax arrears under the Direct Tax Vivad Se Vishwas Act, 2020.
Indian Strategic Petroleum Reserves Ltd, the respondent, faced an appeal from the ACIT Circle-12(1), New Delhi, against the appellate order dated 25.02.2020 under Section 250 of the Income Tax Act, 1961. The case was filed on 2020-09-01 and related to the assessment year 2013-14. The dispute centered on tax arrears that the respondent sought to settle under the Direct Tax Vivad Se Vishwas Act, 2020.
The Direct Tax Vivad Se Vishwas Act, 2020, was introduced to resolve direct tax disputes by providing a mechanism for taxpayers to settle disputes by paying a specified percentage of the disputed tax amount. The Act aimed to reduce litigation and provide an opportunity for taxpayers to settle their tax disputes with the government.
The appellant, ACIT Circle-12(1), filed the appeal against the order passed by the Commissioner of Income Tax (Appeals)-44, New Delhi. During the proceedings, an application for withdrawal of the appeal was submitted by the respondent, Indian Strategic Petroleum Reserves Ltd, citing a settlement under the Direct Tax Vivad Se Vishwas Act, 2020.
The Tribunal noted that an application for withdrawal had been filed by the respondent in furtherance of the settlement reached under the Direct Tax Vivad Se Vishwas Act, 2020. The Tribunal reviewed Form 5 under the Act of 2020, submitted by the appellant, confirming the settlement.
Subsection (2) of Section 4 of the Act of 2020 specifies that upon the issuance of a certificate under subsection (1) of Section 5 by the designated authority, the appeal pending before the Tribunal shall be deemed to have been withdrawn from the date of issuance of the certificate.
Based on the settlement reached and the provisions of the Direct Tax Vivad Se Vishwas Act, 2020, the Tribunal dismissed the appeal filed by the Revenue. However, the dismissal was subject to a caveat: if the dispute relating to the tax arrears for the captioned assessment year is not ultimately resolved under the Act of 2020, the Revenue is at liberty to approach the Tribunal for reinstitution of the appeal, and the Tribunal shall consider such an application appropriately as per law.
Order:
In light of the settlement under the Direct Tax Vivad Se Vishwas Act, 2020, the appeal in hand stands dismissed.
Pronounced: Order pronounced in the open court on 2nd November, 2022.
Sd/-
(ANIL CHATURVEDI)
ACCOUNTANT MEMBER
Sd/-
(ANUBHAV SHARMA)
JUDICIAL MEMBER
Date: 02.11.2022
*Binita, SR.P.S*
Copy forwarded to:
ASSISTANT REGISTRAR
ITAT, NEW DELHI
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