Nirmala Devi Jammar vs. ITO, Ward-21(4): Settlement Under Vivad Se Vishwas Act for AY 2011-12

Nirmala Devi Jammar vs. ITO, Ward-21(4): Settlement Under Vivad Se Vishwas Act for AY 2011-12

The Income Tax Appellate Tribunal (ITAT) of Delhi Bench “Friday Bench A”, consisting of Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member, adjudicated on the case between Nirmala Devi Jammar (Appellant) and Income Tax Officer, Ward-21(4), New Delhi (Respondent) for the assessment year 2011-12. The appeal, numbered ITA No. 6458/DEL/2019, was filed by the appellant on 1st August 2019, challenging the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)], New Delhi, on 31st May 2019. The final tribunal order was pronounced on 28th August 2020, wherein the Tribunal dismissed the appeal as settled under the Direct Tax Vivad Se Vishwas Act, 2020.

Background of the Case

Nirmala Devi Jammar, a resident of New Delhi, filed her income tax return for the assessment year 2011-12, which was subsequently scrutinized by the Income Tax Department. The scrutiny led to certain tax disputes between the appellant and the department, resulting in an appeal being filed before the CIT(A). After the CIT(A) passed an order on 31st May 2019, which was not favorable to the appellant, she further appealed to the ITAT.

During the pendency of the appeal at the ITAT, the Government of India introduced the Direct Tax Vivad Se Vishwas Act, 2020, aimed at resolving pending tax disputes by allowing taxpayers to settle disputes on favorable terms. This Act provided an opportunity for taxpayers to resolve their disputes by paying the disputed tax amount and obtaining a waiver of interest and penalties.

Details of the Settlement Under the Vivad Se Vishwas Act

In the current case, Nirmala Devi Jammar opted to settle the ongoing dispute for the assessment year 2011-12 under the provisions of the Direct Tax Vivad Se Vishwas Act, 2020. She filed the necessary declaration under Section 4 of the Act, expressing her willingness to resolve the tax arrears for the said assessment year.

The appeal was brought up for hearing via video conferencing on 28th August 2020. During the hearing, it was informed that the appellant had opted for the Vivad Se Vishwas scheme and filed the necessary documents. In light of this development, the Tribunal noted the appellant’s decision to settle the dispute under the said Act and, therefore, treated the appeal as dismissed.

Tribunal’s Findings and Judgment

The ITAT, in its order, acknowledged the appellant’s decision to settle the tax dispute under the Direct Tax Vivad Se Vishwas Act, 2020. The Tribunal recorded that the appeal was consigned to records and treated as dismissed for statistical purposes. However, the Tribunal added a caveat, noting that if the dispute relating to tax arrears for the assessment year 2011-12 is not ultimately resolved under the Vivad Se Vishwas Act, the appellant would have the liberty to approach the Tribunal for the reinstatement of the appeal. The Tribunal assured that it would consider such an application as per law. The Revenue did not raise any objections to this caveat.

Consequently, the Tribunal dismissed the appeal with the condition that it could be reinstated if the settlement under the Vivad Se Vishwas Act did not materialize. The decision was announced on the conclusion of the virtual hearing held on 28th August 2020.

Conclusion

This case highlights the effectiveness of the Direct Tax Vivad Se Vishwas Act, 2020, in resolving tax disputes expeditiously. By opting for the settlement scheme, Nirmala Devi Jammar was able to conclude her dispute with the Income Tax Department for the assessment year 2011-12, thus avoiding prolonged litigation. The Tribunal’s decision to dismiss the appeal while allowing the possibility of reinstatement ensures that the rights of the taxpayer are protected in case the settlement process does not reach its intended conclusion.

The ITAT’s ruling underscores the importance of the Vivad Se Vishwas scheme as a mechanism for dispute resolution and reflects the judiciary’s support for such initiatives aimed at reducing litigation and promoting tax compliance.

Order Pronounced in the Open Court on 28th August 2020

Signed by:
Judicial Member: Shri Sudhanshu Srivastava
Vice President: Shri G.S. Pannu

Date of Pronouncement: 28th August 2020

Nirmala Devi Jammar vs. ITO, Ward-21(4): Settlement Under Vivad Se Vishwas Act for AY 2011-12