This article details the tax dispute and subsequent settlement for Promark Technologies Pvt Ltd for the assessment year 2015-16, culminating in the withdrawal of their appeal under the Vivad Se Vishwas Scheme.
Promark Technologies Pvt Ltd, based in New Delhi, found itself entangled in a tax dispute for the assessment year 2015-16. The dispute was initially contested but later sought resolution through the government’s Vivad Se Vishwas Scheme, which aims to mitigate lengthy legal disputes by providing a straightforward means of settling tax arrears.
The company had appealed against an order by the CIT(A)-7, New Delhi, dated 27.12.2018. However, due to the extended legal challenges and the opportunity presented by the Vivad Se Vishwas Scheme, the company opted to withdraw their appeal, signaling a move towards a simpler resolution.
The Vivad Se Vishwas Scheme, introduced in 2020, is designed to reduce litigation in the direct taxes category. Under this scheme, taxpayers can settle their tax disputes by paying a portion of the demanded amount, waiving interests, and penalties. This move by Promark Technologies to utilize the scheme highlights its effectiveness in reducing pending cases and allowing businesses to focus on their core activities without the overhang of tax disputes.
On April 30, 2021, the ITAT, Delhi, officially accepted the withdrawal of the appeal by Promark Technologies. The decision was facilitated by the submission of a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming their eligibility and acceptance into the scheme. This case exemplifies the practical use of government schemes designed to streamline tax litigation and promote a more business-friendly environment.
Promark Technologies Pvt Ltd vs CIT, New Delhi: Tax Dispute Settlement for AY 2015-16
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