This article provides an in-depth analysis of the case ITA 1347/DEL/2020 involving Timely Merchants Pvt Ltd and the Income Tax Officer, Ward 25(3), New Delhi. The case is notable for its resolution under the Direct Tax Vivad Se Vishwas Act, 2020, aimed at reducing litigation and facilitating the settlement of pending tax disputes.
Timely Merchants Pvt Ltd, facing a tax dispute for the assessment year 2012-13, opted to settle the case under the Vivad Se Vishwas Scheme. This move was intended to close disputes efficiently without further litigation.
The appeal was originally directed against an order from the CIT(A)-5, Kolkata. However, before the hearing could progress, Timely Merchants expressed their intention to withdraw the appeal, citing their decision to settle under the Vivad Se Vishwas Scheme.
The assessee submitted a certificate under Section 5(1) of the Vivad Se Vishwas Act as proof of their decision to settle, which was accepted by the tribunal. This decision demonstrates the effectiveness of the scheme in resolving disputes amicably.
The case sets a precedent for other corporations and entities dealing with similar tax disputes, showcasing the potential benefits of opting for settlement schemes offered by the government, which aim to reduce judicial backlog and simplify tax compliance.
This comprehensive review of ITA 1347/DEL/2020 underscores the importance of alternative dispute resolution mechanisms in tax matters, highlighting how the Vivad Se Vishwas Scheme can be a viable option for taxpayers seeking closure on contentious issues without prolonged litigation.
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