Alka Bajaj vs ITO Ward-48(3) – Settlement under Vivad Se Vishwas Scheme for AY 2011-12

Alka Bajaj vs ITO Ward-48(3): Settlement under Vivad Se Vishwas Scheme for AY 2011-12

Case Number: ITA 6528/DEL/2019

Appellant: Alka Bajaj, New Delhi

Respondent: ITO Ward-48(3), New Delhi

Assessment Year: 2011-12

Order Type: Final Tribunal Order

Date of Order: 2020-12-30

Pronounced on: 2020-12-30

Background of the Case

Alka Bajaj, a resident of New Delhi, filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging the assessment order for the assessment year 2011-12. The appeal was filed against the order of the Commissioner of Income Tax (Appeals), New Delhi, dated 31st May 2019.

The appellant sought relief from the tax demand raised by the Income Tax Department for the assessment year 2011-12. However, during the course of the appeal, the appellant opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020.

Vivad Se Vishwas Scheme

The Vivad Se Vishwas Scheme, 2020, was introduced by the Government of India to resolve pending tax disputes by allowing taxpayers to settle their cases by paying a specified amount. This scheme aimed to reduce litigation and expedite the resolution of tax disputes.

On 29th December 2020, the appellant’s counsel submitted an application to the ITAT, stating that the appellant had opted for the Vivad Se Vishwas Scheme and had filed Form No. 1 and Form No. 2 with the designated authority. The appellant was awaiting the issuance of Form No. 3, which would confirm the settlement of the dispute under the scheme.

In light of this, the appellant requested the Tribunal to dismiss the appeal with the liberty to reinstate the appeal if Form No. 3 was not issued.

Tribunal’s Decision

The Tribunal, presided over by Shri H.S. Sidhu, Judicial Member, considered the appellant’s request. The Senior Departmental Representative (DR) raised no objections to the appellant’s request for withdrawal of the appeal under the Vivad Se Vishwas Scheme.

The Tribunal, in its order dated 30th December 2020, dismissed the appeal as withdrawn, subject to the condition that the appellant could file an application to recall the order if Form No. 3 was not issued by the designated authority.

The Tribunal’s order was pronounced in the open court on 30th December 2020, bringing the appeal to a close under the Vivad Se Vishwas Scheme.

Conclusion

This case underscores the effectiveness of the Vivad Se Vishwas Scheme in providing taxpayers with a mechanism to resolve their tax disputes quickly and efficiently. By opting for the scheme, Alka Bajaj was able to settle her tax dispute for the assessment year 2011-12, thus avoiding prolonged litigation and bringing finality to the matter.

The ITAT’s decision to dismiss the appeal following the settlement request highlights the importance of such government initiatives in reducing the burden on the judicial system while also providing relief to taxpayers.

The case of Alka Bajaj vs ITO Ward-48(3) serves as a reminder of the benefits of using government-provided dispute resolution schemes like Vivad Se Vishwas, which not only expedite the resolution process but also provide a clear and structured path for taxpayers to settle their disputes amicably.

Alka Bajaj vs ITO Ward-48(3) – Settlement under Vivad Se Vishwas Scheme for AY 2011-12