This document details the proceedings and resolution of the tax dispute involving Thar Automobiles Pvt. Ltd. for the assessment year 2010-11. The case, presided over by the Hon’ble Shri G.S. Pannu and Shri Saktijit Dey at the Income Tax Appellate Tribunal, Delhi Bench, concludes with the withdrawal of the appeal by the appellant under the Direct Tax Vivad Se Vishwas Act, 2020.
The case against Thar Automobiles Pvt. Ltd. was initially brought by the Income Tax Officer, Ward-25(2), Delhi, with the assessment leading to disputes over tax calculations. The appellant sought relief through the Income Tax Appellate Tribunal after unsatisfactory outcomes in lower tax proceedings.
During the scheduled hearing, no representative for Thar Automobiles appeared, but a letter was submitted requesting withdrawal of the appeal in light of opting for settlement under the Direct Tax Vivad Se Vishwas Act, 2020. This act is a legal provision allowing taxpayers to settle disputes by paying a portion of the outstanding taxes with waivers on penalties and interest.
The bench, understanding the appellant’s intention to settle and resolving the dispute amicably, allowed the withdrawal of the appeal. This led to the dismissal of the case as withdrawn, clearing the appellant from further litigation under this particular assessment year.
The resolution of this case under the Vivad Se Vishwas scheme exemplifies the government’s initiative to reduce litigation in tax-related disputes and provide a straightforward mechanism for taxpayers to resolve their disputes without protracted legal challenges.
This case sheds light on the practical implications of the Vivad Se Vishwas scheme and provides a precedent for similar cases where companies choose to settle their disputes amicably with the tax authorities, thereby promoting a more cooperative tax environment.
Settlement of Thar Automobiles Pvt. Ltd. vs ITO Ward-25(2), Delhi, AY 2010-11 Under Vivad Se Vishwas
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