The resolution of tax disputes can be lengthy and complex, requiring significant resources from both the taxpayer and the government. ITA 5002/DEL/2019 provides a perfect illustration of a more streamlined and efficient approach, utilizing the Vivad Se Vishwas scheme to settle disputes amicably.
The appeal by the Income Tax Officer of Ward-23(1), New Delhi against Shakuntala Agencies P.Ltd. for the assessment year 2010-11 highlights issues surrounding tax arrears. The original dispute was regarding discrepancies in tax calculations, which the assessee opted to settle under the government’s Vivad Se Vishwas scheme, a strategic initiative aimed at reducing litigation in direct tax disputes.
Under the Vivad Se Vishwas Act, 2020, Shakuntala Agencies P.Ltd. opted to resolve the dispute by paying the assessed tax amount after obtaining Form No.5. This proactive step by the assessee led to a formal request for the withdrawal of the appeal by the Revenue, thereby simplifying the resolution process.
The Tribunal acknowledged the settlement and recognized the payment completion under the scheme. Consequently, the appeal by the Revenue was dismissed as ‘withdrawn.’ The order emphasized the effectiveness of the Vivad Se Vishwas scheme in reducing pending cases and facilitating a faster resolution of tax disputes.
This case sets a precedent for other pending tax disputes, illustrating the potential benefits of alternative dispute resolution mechanisms. By opting for the Vivad Se Vishwas scheme, both parties avoided prolonged litigation, reducing the burden on judicial resources and providing a clear, quick resolution.
ITA 5002/DEL/2019 serves as a testament to the practical applications of the Vivad Se Vishwas scheme in the real world, aligning with policy objectives to decrease litigation and promote compliance. The case highlights the mutual benefits for taxpayers and the administration, paving the way for similar resolutions in the future.
Successful Tax Dispute Resolution through Vivad Se Vishwas: A Case Study of ITA 5002/DEL/2019
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