The case ITA No. 5251/DEL/2019 encapsulates Zamil Air Conditioners India Pvt. Ltd.’s decision to withdraw their appeal and settle the dispute for the assessment year 2012-13 under the Vivad Se Vishwas Scheme, a significant tax resolution initiative by the Indian government.
Zamil Air Conditioners India Pvt. Ltd., challenged the assessment orders for the assessment years 2012-13 and 2013-14 which were initially addressed by CIT(A)-44, New Delhi. The disputes revolved around tax arrears which the company decided to settle under the newly implemented Vivad Se Vishwas Scheme.
The appeals for both the assessment years were handled through virtual hearings due to procedural adaptations amid pandemic constraints. The company officially communicated their intention to withdraw the appeals through a letter dated February 22, 2021, which also included a certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, confirming their participation in the scheme.
The tribunal accepted the withdrawal request after the Senior DR did not object to the withdrawal. The legal documentation and the certificate under the Vivad Se Vishwas Act facilitated a smooth resolution of the disputes.
The case highlights the practical aspects and benefits of the Vivad Se Vishwas scheme as an alternative dispute resolution mechanism. It reflects the shift in the tax dispute resolution landscape in India, encouraging taxpayers to settle longstanding disputes and reduce litigation. This case serves as a precedent for the efficacy and utility of the scheme, illustrating its role in promoting a non-adversarial tax environment.
The withdrawal of ITA No. 5251/DEL/2019 by Zamil Air Conditioners India Pvt. Ltd. underlines the strategic considerations companies undertake in managing tax disputes. It showcases the Vivad Se Vishwas scheme as a viable option for reconciling tax disputes, paving the way for other corporations to consider similar avenues for dispute resolution.
Zamil Air Conditioners India Pvt. Ltd. vs. DCIT: Opting for Vivad Se Vishwas in ITA 5251/DEL/2019
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