This article examines the case ITA 1181/DEL/2020, filed by Dinesh Arora & Sons (HUF), Ghaziabad, against the Income Tax Officer (ITO) Ward-1(2), Ghaziabad, for the assessment year 2015-16. The case was filed on June 16, 2020, and the final tribunal order was pronounced on February 10, 2022. The appeal was withdrawn by the appellant under the Vivad se Vishwas Scheme, 2020, which aims to settle tax disputes amicably.
Dinesh Arora & Sons (HUF), based in Ghaziabad, Uttar Pradesh, had filed an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], Ghaziabad, dated April 30, 2019, for the assessment year 2015-16. The appeal was directed towards the decision of the CIT(A) regarding certain tax arrears and assessments made by the ITO Ward-1(2), Ghaziabad.
The appeal was withdrawn by the appellant, Dinesh Arora & Sons (HUF), through a letter dated February 10, 2022. The appellant sought permission to withdraw the appeal as the matter had been settled under the Vivad se Vishwas Scheme, 2020. The declaration filed by the assessee for full and final settlement of tax arrears was accepted, and Form No. 5 was issued, confirming the settlement.
The Vivad se Vishwas Scheme, 2020, was introduced by the Indian government to resolve pending tax disputes. It provides a mechanism for taxpayers to settle their tax disputes by paying a specified percentage of the disputed tax amount, thereby reducing the burden on the judiciary and providing relief to taxpayers.
The Income Tax Appellate Tribunal (ITAT) Delhi Bench “SMC” presided over by Shri Challa Nagendra Prasad, Judicial Member, accepted the withdrawal of the appeal by the appellant, Dinesh Arora & Sons (HUF). The tribunal acknowledged the settlement under the Vivad se Vishwas Scheme and dismissed the appeal as withdrawn.
The tribunal order dated February 10, 2022, noted that the appellant had filed a declaration under the Vivad se Vishwas Scheme, 2020, which was accepted, and Form No. 5 was issued for the full and final settlement of the tax arrears. Consequently, the appeal was dismissed as withdrawn.
The tribunal’s order in ITA 1181/DEL/2020 was pronounced on February 10, 2022, by Shri Challa Nagendra Prasad, Judicial Member. The order concluded the proceedings with the dismissal of the appeal as withdrawn under the Vivad se Vishwas Scheme, 2020.
This case highlights the benefits of the Vivad se Vishwas Scheme, 2020, for taxpayers looking to settle their disputes without prolonged litigation. By availing of this scheme, taxpayers can achieve a quicker resolution to their tax issues, avoid penalties and interest, and gain immunity from prosecution for the matters covered under the settlement.
The scheme aids tax authorities by reducing the backlog of cases and allowing for more efficient use of resources. It also promotes a cooperative approach between taxpayers and the tax administration, fostering a more positive compliance environment.
The withdrawal of this appeal under the Vivad se Vishwas Scheme sets a precedent for other taxpayers to consider similar settlements. It underscores the importance of alternative dispute resolution mechanisms in the tax administration system.
In conclusion, the case ITA 1181/DEL/2020 showcases the effective use of the Vivad se Vishwas Scheme, 2020, in resolving tax disputes. The withdrawal of the appeal by Dinesh Arora & Sons (HUF) against the ITO Ward-1(2), Ghaziabad, under this scheme, highlights the scheme’s benefits and the proactive steps taken by both taxpayers and tax authorities to settle disputes amicably.
The tribunal’s order reaffirms the legitimacy of such settlements and provides a roadmap for other taxpayers seeking to resolve their tax disputes without prolonged litigation. This case serves as a valuable example of how alternative dispute resolution mechanisms can enhance the efficiency and effectiveness of the tax administration system.
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