Case Number: ITA 1158/DEL/2020
Appellant: Nitrex Chemicals India Ltd., New Delhi
Respondent: ACIT Circle-18(2), New Delhi
Assessment Year: 2015-16
Result: Appeal dismissed as withdrawn
Case Filed On: 2020-06-10
Order Type: Final Tribunal Order
Date of Order: 2022-10-31
Pronounced On: 2022-10-31
The case involves Nitrex Chemicals India Ltd. (the appellant) appealing against the order passed by the Assistant Commissioner of Income Tax (ACIT), Circle-18(2), New Delhi, for the assessment year 2015-16. The appeal was directed against the order of the learned Commissioner of Income-tax (Appeals)-37, New Delhi, dated 30.01.2020.
The appellant, Nitrex Chemicals India Ltd., filed an appeal challenging the order of the ACIT, which included issues related to the treatment of capital expenses, initiation of penalty proceedings, and the overall acceptance of returned income. The company raised the following grounds of appeal:
At the hearing, the authorized representative of the assessee, Mr. Sunil Kumar, filed an application seeking permission to withdraw the appeal. The grounds for withdrawal were based on the fact that the assessee had opted for the Vivad Se Vishwas Scheme, 2020, for the assessment year in question. The Designated Authority had also issued Form no. 5 for the full and final settlement of tax arrears under the scheme.
The representative provided a copy of Form no. 5 as evidence of the settlement under the Direct Tax Vivad Se Vishwas Act, 2020. In the absence of any objections from the Departmental Representative (DR), the request for withdrawal was accepted by the Tribunal.
The Income Tax Appellate Tribunal (ITAT), comprising Shri Narendra Kumar Billaiya, Accountant Member, and Shri Kul Bharat, Judicial Member, reviewed the application for withdrawal. Considering the circumstances and the absence of objections from the respondent, the Tribunal allowed the withdrawal of the appeal.
The ITAT dismissed the appeal filed by Nitrex Chemicals India Ltd. as withdrawn. The case was settled under the Vivad Se Vishwas Scheme, 2020, providing a resolution to the tax dispute for the assessment year 2015-16.
Implications: This case highlights the impact of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes. Taxpayers opting for this scheme can settle their disputes efficiently, potentially avoiding prolonged litigation.
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