Praveen Singhal vs ITO Ward 31(5): Appeal Withdrawal Under Vivad Se Vishwas Scheme for Assessment Year 2011-12

Praveen Singhal vs ITO Ward 31(5): Appeal Withdrawal Under Vivad Se Vishwas Scheme for Assessment Year 2011-12

The case of Praveen Singhal, New Delhi, versus the Income Tax Officer, Ward-31(5), New Delhi, for the assessment year 2011-12 was addressed by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘C’ on December 29, 2020. The appeal, numbered ITA 6466/DEL/2019, was initially filed on August 1, 2019, challenging the assessment order issued for the financial year under review.

The appellant, Praveen Singhal, through his authorized representative, submitted a formal request to withdraw the appeal, indicating that he had decided to opt for the Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the Government of India to resolve pending tax disputes by providing taxpayers with an opportunity to settle their tax disputes by paying a defined amount based on the nature of the dispute. The scheme aims to reduce litigation and provide certainty to taxpayers.

The primary issue in this case revolved around the assessment for the year 2011-12, which was under dispute. The appellant, Praveen Singhal, sought to resolve the matter by taking advantage of the Vivad Se Vishwas Scheme. Under the scheme, taxpayers who opt to settle their disputes are required to withdraw their appeals from the relevant appellate forums, including the ITAT.

In the virtual hearing conducted on December 29, 2020, no representative appeared on behalf of the appellant. However, a letter dated December 17, 2020, was submitted to the tribunal, in which the appellant’s counsel requested the withdrawal of the appeal. The letter also stated that the appellant had opted to settle the tax arrears for the assessment year 2011-12 under the Vivad Se Vishwas Scheme, 2020. A certificate to this effect, issued under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also filed with the tribunal.

The learned Senior Departmental Representative (DR), Shri Gaurav Dudeja, who represented the revenue, raised no objections to the appellant’s request for withdrawal. Consequently, the tribunal, presided over by Vice President Shri G.S. Pannu and Judicial Member Shri K.N. Chary, accepted the request for withdrawal of the appeal.

The tribunal, in its order, noted the appellant’s decision to opt for the Vivad Se Vishwas Scheme and acknowledged the submission of the necessary certificate under the scheme. The tribunal further stated that in light of the appellant’s request and the absence of any objection from the revenue, the appeal was dismissed as withdrawn.

The tribunal’s decision to allow the withdrawal of the appeal under the Vivad Se Vishwas Scheme is in line with the objectives of the scheme, which is to provide a mechanism for taxpayers to settle their disputes with finality, thereby reducing the burden of litigation on both taxpayers and the tax authorities.

In conclusion, the case of Praveen Singhal vs ITO Ward-31(5) serves as a significant example of how the Vivad Se Vishwas Scheme has facilitated the resolution of long-standing tax disputes. The appellant’s decision to opt for the scheme and withdraw the appeal demonstrates the effectiveness of the initiative in providing a clear and efficient path to dispute resolution.

The order was pronounced in the open court on December 29, 2020, with the decision duly recorded and communicated to both parties involved. The case highlights the importance of alternative dispute resolution mechanisms in the realm of tax litigation and the benefits they offer to both taxpayers and the tax administration.

Praveen Singhal vs ITO Ward 31(5): Appeal Withdrawal Under Vivad Se Vishwas Scheme for Assessment Year 2011-12