The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘A’ resolved a notable tax dispute on December 7, 2020, for VK Finvest Pvt Ltd against the Income Tax Officer (ITO), Ward-26(1), New Delhi for the assessment year 2010-11. This case illustrates the application of the Vivad Se Vishwas Scheme aimed at reducing prolonged tax litigations.
VK Finvest Pvt Ltd challenged an order from the learned Commissioner of Income Tax (Appeals), which was a follow-up of disputes concerning the financial year 2010-11. The primary issues revolved around discrepancies in tax calculations which were significant enough to warrant a formal dispute.
The company opted to resolve the dispute through the Vivad Se Vishwas Scheme, a government initiative introduced to minimize litigation and simplify the resolution of pending tax disputes. This move was formalized with the issuance of a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming the settlement of disputes under this scheme.
At the hearing, no representative for VK Finvest appeared, and the appeal was formally withdrawn. The tribunal accepted the withdrawal, acknowledging the settlement under the Vivad Se Vishwas Scheme. This case demonstrates the scheme’s effectiveness in providing a streamlined and less adversarial means of settling tax disputes.
The dismissal of ITA 5073/DEL/2019 post-settlement under the Vivad Se Vishwas Scheme not only resolved the immediate tax issues for VK Finvest Pvt Ltd but also illustrated the broader benefits of such policy measures in reducing the backlog of cases and fostering a cooperative tax compliance environment.
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