Amba Properties Pvt. Ltd. vs. ACIT: Appeal Withdrawn under Vivad Se Vishwas Scheme

Amba Properties Pvt. Ltd. vs. ACIT: Appeal Withdrawn under Vivad Se Vishwas Scheme

Case Number: ITA 6482/DEL/2019

Appellant: Amba Properties Pvt. Ltd., New Delhi

Respondent: ACIT Circle-2(2), New Delhi

Assessment Year: 2016-17

Date of Order: February 3, 2021

Order Pronounced On: February 3, 2021

Background

Amba Properties Pvt. Ltd., a company based in New Delhi, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)-1, New Delhi dated June 28, 2019, for the assessment year 2016-17. The case was taken up by the Income Tax Appellate Tribunal (ITAT) Delhi Bench “SMC-1”, where the hearing was conducted through video conferencing due to the ongoing pandemic restrictions.

Why the Case Was Filed

The appeal was filed by Amba Properties Pvt. Ltd. against the assessment order passed by the ACIT Circle-2(2), New Delhi, which had raised certain tax disputes regarding the income declared by the company for the assessment year 2016-17. The company contested the assessment, seeking relief from the additions made by the Assessing Officer.

Proceedings and Appeal Withdrawal

During the hearing on February 3, 2021, the authorized representative of Amba Properties Pvt. Ltd. submitted a letter dated January 29, 2021, stating that the company had opted to settle the tax dispute under the Direct Taxes Vivad Se Vishwas Scheme, 2020. The representative informed the Tribunal that the necessary Form Nos. 1 and 2 had been filed on August 31, 2020, to avail the benefits of the scheme. However, Form No. 3, which is the certificate issued under the scheme, had not yet been received by the appellant.

The representative requested the Tribunal to treat the appeal as withdrawn, subject to the condition that the company may reapply to have the order recalled if the dispute is not resolved under the Vivad Se Vishwas Scheme.

Considering the facts presented and with the consent of the Senior Departmental Representative, the Tribunal decided to dismiss the appeal as withdrawn.

Final Judgment

The Income Tax Appellate Tribunal, acknowledging the appellant’s request and the pending settlement under the Vivad Se Vishwas Scheme, dismissed the appeal filed by Amba Properties Pvt. Ltd. for the assessment year 2016-17. The Tribunal granted the company liberty to file an application for the recall of the order if the tax dispute is not settled under the scheme.

Conclusion

The case of Amba Properties Pvt. Ltd. vs. ACIT Circle-2(2), New Delhi highlights the use of the Direct Taxes Vivad Se Vishwas Scheme, 2020, as a mechanism for resolving tax disputes. The dismissal of the appeal as withdrawn underlines the effectiveness of the scheme in providing a resolution framework for taxpayers seeking to settle their disputes with the tax authorities. The case is a testament to the government’s initiative to reduce litigation and provide a pathway for taxpayers to resolve their pending tax issues amicably.

The order was pronounced in the open court on February 3, 2021, by the ITAT Bench comprising Judicial Member Bhavnesh Saini and Accountant Member Prashant Maharishi.

Amba Properties Pvt. Ltd. vs. ACIT: Appeal Withdrawn under Vivad Se Vishwas Scheme