Franchise India Brands Ltd., a prominent business entity, encountered a tax dispute for the assessment year 2017-18, leading to a legal proceeding documented as ITA No.1278/Del/2019. This case reflects on the procedural aspects and the ultimate resolution through the Vivad Se Vishwas Scheme, a legal framework aimed at reducing litigation in direct tax disputes.
The dispute originated from an order by the CIT(A)-30, New Delhi, dated January 10, 2019. The case proceedings were conducted through video conferencing, reflecting the adaptations in judicial processes to accommodate circumstances like the pandemic.
During the virtual hearing on July 16, 2021, no representative for Franchise India Brands Ltd. appeared. Instead, the company submitted a letter expressing its intention to withdraw the appeal and settle the dispute under the Vivad Se Vishwas Scheme. This decision illustrates the company’s strategic move to utilize governmental schemes for amicable resolution of disputes.
The tribunal accepted the withdrawal of the appeal, leading to a dismissal of the case. This outcome not only highlights the effectiveness of the Vivad Se Vishwas Scheme in providing a platform for dispute resolution without prolonged litigation but also underscores the importance of such schemes in fostering a cooperative environment between taxpayers and the tax authorities.
This case serves as a significant precedent for other corporations facing similar disputes, offering insights into the benefits of engaging in government-promoted dispute resolution schemes to efficiently handle tax-related controversies.
Resolution of Tax Dispute for Franchise India Brands Ltd. for AY 2017-18
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