In the case ITA No. 5584/DEL/2019, the appellant Kusum Healthcare Pvt. Ltd. from New Delhi challenged the tax assessment made by the Addl. CIT, Special Range-5, New Delhi, for the assessment year 2014-15. The case was filed on 26th June 2019, and the final tribunal order was pronounced on 12th March 2021.
The appeal concerned the tax assessment for the financial year 2014-15. Kusum Healthcare Pvt. Ltd. opted to settle the dispute relating to the tax arrears for the assessment year under the Vivad Se Vishwas Scheme, 2020.
The appellant filed the appeal against the order of the CIT(A)-44, New Delhi, dated 22.04.2019. The primary contention was regarding the tax arrears and the penalty imposed by the Assessing Officer (AO).
The Direct Tax Vivad Se Vishwas Act, 2020, introduced a scheme for settling disputes related to tax arrears. Under this scheme, taxpayers can settle their disputes by paying a specified percentage of the disputed tax and obtain immunity from penalty and interest.
On 4th March 2021, the counsel for Kusum Healthcare Pvt. Ltd. requested the withdrawal of the appeal, stating that the company had opted to settle the dispute under the Vivad Se Vishwas Scheme. A certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, was also filed to confirm the settlement.
The tribunal, consisting of Vice President G.S. Pannu and Judicial Member K. Narasimha Chary, considered the request for withdrawal of the appeal. The Senior DR had no objection to the withdrawal request.
The tribunal accepted the request for withdrawal of the appeal. The decision was based on the appellant’s settlement under the Vivad Se Vishwas Scheme and the absence of any objection from the Senior DR.
The tribunal concluded that the appeal filed by Kusum Healthcare Pvt. Ltd. for the assessment year 2014-15 should be dismissed as withdrawn. This decision was announced on 12th March 2021, during a virtual hearing in the presence of both parties.
This case highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for this scheme, Kusum Healthcare Pvt. Ltd. was able to settle its tax arrears and avoid prolonged litigation, penalties, and interest. The scheme provides a pragmatic solution for taxpayers seeking to resolve their tax disputes efficiently.
The final judgment in ITA No. 5584/DEL/2019 was pronounced by the Income Tax Appellate Tribunal, Delhi Bench ‘A’, New Delhi, on 12th March 2021. The tribunal’s order stated that the appeal by Kusum Healthcare Pvt. Ltd. was dismissed as withdrawn, in light of the settlement under the Vivad Se Vishwas Scheme.
Members of the Tribunal:
Vice President: G.S. Pannu
Judicial Member: K. Narasimha Chary
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