This article examines the case ITA 1191/DEL/2020, where PT Bukaka Teknik Utama, based in New Delhi, filed an appeal against the Deputy Commissioner of Income Tax (DCIT) International Taxation Circle-2(2)(2), New Delhi, for the assessment year 2014-15. The appeal, filed on June 16, 2020, was resolved on February 25, 2021, under the Vivad Se Vishwas Scheme, resulting in its withdrawal.
PT Bukaka Teknik Utama, represented by Satish Aggarwal & Associates, faced a tax dispute for the assessment year 2014-15. The case was initially brought before the Commissioner of Income Tax (Appeals)-43, New Delhi, which led to further escalation to the Income Tax Appellate Tribunal (ITAT).
The tribunal proceedings took place through video conferencing, a necessary adaptation due to the COVID-19 pandemic. The case was heard by Shri R.K. Panda, Accountant Member, and Shri K.N. Chary, Judicial Member. The appellant was represented by Shri Satish Aggarwal, CA, while the respondent was represented by Shri M. Barnwal, Senior Departmental Representative (DR).
On February 19, 2021, the counsel for PT Bukaka Teknik Utama submitted a letter requesting the withdrawal of the appeal. The reason cited was the company’s 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 submitted to validate this request.
The Senior DR, Shri M. Barnwal, raised no objections to the withdrawal request, facilitating a swift resolution.
Based on the withdrawal request and the absence of objections from the respondent, the tribunal accepted the appeal’s withdrawal. The final order stated:
“This appeal by the assessee for the assessment year 2014-15 is directed against the order of learned CIT(A)-43, New Delhi dated 01.01.2020.
2. The learned counsel for the assessee, vide its letter dated 19.02.2021, received through email, has requested for withdrawal of the appeal filed by him and stated that the assessee has opted to settle the dispute relating to the tax arrears for the assessment year under consideration under the ‘Vivad Se Vishwas Scheme, 2020’. A certificate to this effect under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020 has also been filed.
3. Learned Senior DR has no objection.
4. In view of the above, we accept the request of the assessee for withdrawal of the appeal.
5. In the result, the appeal of the assessee is dismissed as withdrawn.
Above decision was announced on conclusion of Virtual Hearing in the presence of both the parties on 25th February, 2021.
(K.N. CHARY) (R. K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER”
The ITA 1191/DEL/2020 case highlights the effective use of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for this scheme, PT Bukaka Teknik Utama successfully settled its tax arrears for the assessment year 2014-15, leading to the withdrawal of the appeal.
Taxpayers can consider schemes like Vivad Se Vishwas for settling disputes amicably, reducing litigation costs and time.
The successful implementation of such schemes reflects positively on the tax authorities, showcasing their willingness to resolve disputes efficiently.
This case sets a precedent for similar future cases, where opting for settlement schemes can lead to quicker resolutions, benefitting both parties involved.
The ITA 1191/DEL/2020 case serves as a testament to the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. The swift withdrawal of the appeal underscores the scheme’s role in facilitating amicable settlements and reducing the burden on the judicial system. This case provides valuable insights into the workings of tax dispute resolution mechanisms and the benefits of opting for government-initiated settlement schemes.
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