Prakash Jain Barmecha vs ACIT Circle-70(1), New Delhi | Assessment Year 2015-16 | Appeal Settled Under Vivad se Vishwas Act

Prakash Jain Barmecha vs ACIT Circle-70(1), New Delhi: Assessment Year 2015-16

Case Number: ITA 6497/DEL/2019

Appellant: Prakash Jain Barmecha, New Delhi

Respondent: ACIT Circle-70(1), New Delhi

Assessment Year: 2015-16

Order Date: 28th August 2020

Pronounced On: 28th August 2020

Order Type: Final Tribunal Order

Background

In this case, Shri Prakash Jain Barmecha, the appellant, filed an appeal against the assessment order passed by the Assistant Commissioner of Income Tax (ACIT), Circle-70(1), New Delhi, for the assessment year 2015-16. The appeal was initially filed to challenge certain tax arrears determined by the ACIT. However, before the Income Tax Appellate Tribunal (ITAT) could adjudicate the appeal, the appellant decided to opt for settlement under the Direct Tax Vivad se Vishwas Act, 2020.

Why the Case Was Filed

The case was filed by the appellant to dispute the tax arrears assessed by the ACIT for the assessment year 2015-16. The appellant sought relief from the tax demands raised by the tax authorities, arguing that the assessment was incorrect or that the demands were excessive. However, with the introduction of the Direct Tax Vivad se Vishwas Act, 2020, which provided an opportunity to resolve pending tax disputes amicably, the appellant chose to settle the matter under this scheme rather than continue with the litigation.

Direct Tax Vivad se Vishwas Act, 2020

The Direct Tax Vivad se Vishwas Act, 2020, was introduced by the Government of India as a means to reduce the number of direct tax disputes. The Act provides taxpayers an opportunity to settle their tax disputes by paying the disputed tax amount and, in return, receiving a waiver of interest, penalties, and prosecution. This scheme was seen as a beneficial option for both taxpayers and the government to resolve long-pending disputes quickly and efficiently.

Tribunal’s Findings

The Income Tax Appellate Tribunal (ITAT), consisting of Shri G.S. Pannu (Vice President) and Shri Sudhanshu Srivastava (Judicial Member), took note of the fact that the appellant had opted to settle the dispute under the Vivad se Vishwas Act. The appellant had filed the necessary declaration under Section 4 of the Act, indicating their intention to settle the tax arrears.

Given this development, the Tribunal found it appropriate to dismiss the appeal and consign it to the records. However, the Tribunal included a caveat that in case the dispute was not ultimately resolved under the Vivad se Vishwas Act, the appellant could approach the Tribunal to reinstitute the appeal. The Revenue had no objection to this caveat, ensuring that the appellant’s rights were preserved should the settlement process fail.

Conclusion

The Tribunal’s order concluded with the dismissal of the appeal for statistical purposes, acknowledging the appellant’s decision to resolve the tax dispute under the Vivad se Vishwas Act, 2020. The Tribunal emphasized that the dismissal was procedural, and the appellant retained the right to reinstate the appeal if the settlement did not materialize.

Final Judgment

The final judgment in the case of Prakash Jain Barmecha vs ACIT Circle-70(1), New Delhi, for the assessment year 2015-16, was that the appeal was dismissed as the appellant opted for settlement under the Vivad se Vishwas Act, 2020. The Tribunal provided the appellant with the option to reinstitute the appeal if the dispute was not resolved through the settlement scheme, thereby ensuring a fair and just process.

This case highlights the utility of the Vivad se Vishwas Act in providing a resolution mechanism for taxpayers and underscores the Tribunal’s role in facilitating the settlement while safeguarding the appellant’s rights.

Prakash Jain Barmecha vs ACIT Circle-70(1), New Delhi | Assessment Year 2015-16 | Appeal Settled Under Vivad se Vishwas Act