Case Number: ITA 1604/DEL/2019
Appellant: Real Fincap Ltd., New Delhi
Respondent: ITO Ward 21(4), New Delhi
Assessment Year: 2010-11
Case Filed on: 2019-02-27
Order Type: Final Tribunal Order
Date of Order: 2020-12-30
Pronounced on: 2020-12-30
In this case, Real Fincap Ltd., based in New Delhi, contested an order passed by the Income Tax Officer (ITO) Ward 21(4) regarding tax arrears for the assessment year 2010-11. The case revolves around the appellant’s decision to settle the dispute under the Vivad Se Vishwas Scheme, 2020, leading to the withdrawal of the appeal.
Real Fincap Ltd. filed an appeal against the order of the learned Commissioner of Income Tax (Appeals)-7, New Delhi, dated 24.01.2019. The appeal was related to tax arrears for the assessment year 2010-11. However, the appellant later opted to resolve the dispute through the Vivad Se Vishwas Scheme, 2020, which allows taxpayers to settle their tax disputes by paying a specified percentage of the disputed tax amount.
The appellant initially contested the order on various grounds, but these details were not elaborated during the proceedings as the appeal was withdrawn before substantive arguments were made.
During the virtual hearing held on 30th December 2020, the appellant’s counsel requested the withdrawal of the appeal, citing the decision to settle the dispute under the Vivad Se Vishwas Scheme, 2020. The appellant submitted a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming their participation in the scheme.
The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘C’, through video conferencing. The bench consisted of Shri G.S. Pannu, Vice President, and Shri K.N. Chary, Judicial Member.
The Senior Departmental Representative (DR), Shri Gaurav Dudeja, did not object to the appellant’s request for withdrawal. The Tribunal noted the request and the supporting documentation submitted by the appellant.
The Tribunal acknowledged the appellant’s request to withdraw the appeal and accepted it. The Tribunal’s order stated:
“We accept the request of the assessee for withdrawal of the appeal. In the result, the appeal of the assessee is dismissed as withdrawn.”
The decision was announced on the conclusion of the virtual hearing on 30th December 2020.
In light of the appellant’s decision to settle the dispute under the Vivad Se Vishwas Scheme, the Tribunal dismissed the appeal as withdrawn. The Tribunal emphasized that the appellant’s participation in the scheme and the withdrawal of the appeal were voluntary and in accordance with the provisions of the Direct Tax Vivad Se Vishwas Act, 2020.
This case highlights the utility of the Vivad Se Vishwas Scheme in resolving tax disputes efficiently. By opting for the scheme, Real Fincap Ltd. was able to settle their tax arrears for the assessment year 2010-11, thereby avoiding prolonged litigation and potential additional liabilities. The Tribunal’s acceptance of the appeal withdrawal underlines the scheme’s role in reducing the backlog of tax-related cases and promoting amicable resolutions.
In conclusion, the Tribunal’s decision to dismiss the appeal as withdrawn reflects the appellant’s proactive approach in utilizing the Vivad Se Vishwas Scheme to settle their tax dispute. This case serves as an example for other taxpayers facing similar disputes, demonstrating the benefits of participating in schemes aimed at resolving tax arrears and disputes.
Real Fincap Ltd. vs. ITO Ward 21(4): Appeal Withdrawal under Vivad Se Vishwas Scheme
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform