This document provides a comprehensive analysis of the Income Tax Appellate Tribunal decision for ITA No. 4689/DEL/2019, involving V.S.P. Stores Pvt. Ltd., a company based in New Delhi, and the Assistant Commissioner of Income Tax, Circle-26(2), New Delhi. The case pertains to the assessment year 2013-14 and concludes with the appellant’s decision to withdraw the appeal under the Vivad Se Vishwas Scheme, 2020.
The appeal was filed against the order of the CIT(A)-9, New Delhi dated March 25, 2019. The appellant, V.S.P. Stores Pvt. Ltd., sought redressal for tax assessments that they contended were improperly executed for the fiscal year 2013-14. However, the proceedings took a turn when the appellant opted to resolve the dispute through the recently introduced Vivad Se Vishwas Scheme, thereby aiming to foster a litigation-free tax environment.
The case was heard through video conferencing, respecting the need for efficiency and safety amid technological advancement and global health concerns. Notably, on the day of the hearing, no representative for the appellant was present, and a withdrawal request was submitted instead.
The legal counsel for V.S.P. Stores, via a letter dated April 5, 2021, formally requested the withdrawal of the appeal, citing their entry into the Vivad Se Vishwas Scheme as a decisive factor for settling the dispute out of court. The tribunal acknowledged the receipt of a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, which substantiates the appellant’s commitment to settling the arrears under the terms of the scheme.
The tribunal, after considering the submissions and the absence of any objection from the senior departmental representative, approved the withdrawal of the appeal. This decision emphasizes the effectiveness of alternative dispute resolution mechanisms in the realm of tax disputes and marks a significant step towards reducing litigation in the taxation system of India.
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