Case Number: ITA 5465/DEL/2019
Appellant: Sagar Realtors Private Limited, Delhi
Respondent: ACIT Central Circle 19, New Delhi
Assessment Year: 2016-17
Result: Final Tribunal Order
Case Filed on: 2019-06-20
Date of Order: 2021-03-03
Pronounced on: 2021-03-03
The case between Sagar Realtors Private Limited and the Assessing Officer of Central Circle 19, New Delhi concerned the assessment year 2016-17. Originally contested, the appeal was eventually withdrawn by the appellant, utilizing the Vivad Se Vishwas Scheme, which is designed to reduce litigation in the realm of tax disputes.
The appeal was initiated by Sagar Realtors against the order dated May 7, 2019, by the CIT(A)-27, New Delhi. The dispute related to tax arrears for the fiscal year 2016-17, which led to the filing of the appeal.
The Indian government introduced the Vivad Se Vishwas Scheme in 2020 as a method to reduce pending litigation by offering a mechanism to settle tax disputes out of court. Sagar Realtors opted for this scheme, and a certificate of settlement (under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020) was obtained, confirming the settlement of the disputed tax arrears.
Upon filing for withdrawal under the Vivad Se Vishwas Scheme, the Income Tax Appellate Tribunal (ITAT) acknowledged the withdrawal request, and the appeal was officially dismissed as withdrawn. This allowed for a resolution that was agreeable to both the taxpayer and the tax authority.
The case’s dismissal underlines the effectiveness of alternative dispute resolution mechanisms in managing tax disputes, promoting a quicker and less adversarial resolution process. The tribunal’s acceptance of the withdrawal highlights the shifting focus towards reducing judicial backlog and fostering compliance.
Order pronounced in the open court on 3rd March, 2021.
Signatories:
Kul Bharat, Judicial Member
G.S. Pannu, Vice President
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