Vishwakarma Enterprises (India) Private Limited vs. ITO Ward-26(4): Withdrawal of Appeal Under Vivad Se Vishwas Scheme for Assessment Year 2015-16

Vishwakarma Enterprises (India) Private Limited vs. ITO Ward-26(4): Withdrawal of Appeal Under Vivad Se Vishwas Scheme for Assessment Year 2015-16

The Income Tax Appellate Tribunal (ITAT) of Delhi Bench ‘E’, presided over by Shri G.S. Pannu, Vice President, and Ms. Suchitra Kamble, Judicial Member, considered the appeal filed by Vishwakarma Enterprises (India) Private Limited, Delhi. The case, registered as ITA No. 6449/DEL/2019, was related to the assessment year 2015-16 and was initially filed on 1st August 2019. The appeal was subsequently withdrawn by the appellant under the provisions of the Direct Tax Vivad Se Vishwas Scheme, 2020. The final order from the tribunal was pronounced on 31st August 2021.

Background of the Case

Vishwakarma Enterprises (India) Private Limited is a company based in New Delhi, engaged in various business operations. For the assessment year 2015-16, the company filed its income tax return, which was later subjected to scrutiny by the Income Tax Officer (ITO) Ward-26(4), New Delhi. The ITO raised certain disputes and issued a tax demand against the company. Dissatisfied with the assessment order, Vishwakarma Enterprises challenged the decision by filing an appeal with the Commissioner of Income Tax (Appeals) [CIT(A)], New Delhi.

Despite the company’s efforts, the CIT(A) upheld the ITO’s order, leaving Vishwakarma Enterprises with unresolved tax disputes. Consequently, the company appealed to the ITAT for further relief. The appeal centered around the contested tax demand and the issues raised during the assessment. However, before the ITAT could deliver a final judgment on the merits, the company decided to avail itself of the Vivad Se Vishwas Scheme, 2020.

The Vivad Se Vishwas Scheme

The Direct Tax Vivad Se Vishwas Scheme, 2020, was introduced by the Government of India as a part of its efforts to reduce litigation and resolve pending tax disputes efficiently. Under this scheme, taxpayers were given the opportunity to settle their disputes by paying the disputed tax amount while receiving waivers on interest and penalties. In return, the taxpayers could withdraw their appeals, bringing an end to the protracted legal battles.

Recognizing the benefits of the scheme, Vishwakarma Enterprises (India) Private Limited chose to settle its tax dispute under the Vivad Se Vishwas Scheme. The company completed the necessary formalities, including the payment of the disputed tax amount and obtaining a certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020.

Proceedings Before the ITAT

The ITAT scheduled the virtual hearing for the case on 31st August 2021. However, the appellant did not appear for the hearing, as the company had already decided to withdraw the appeal. Instead, Vishwakarma Enterprises had submitted a letter dated 13th August 2021, requesting the withdrawal of the appeal. The letter, sent via email, confirmed that the company had opted to resolve the tax arrears for the assessment year 2015-16 under the Vivad Se Vishwas Scheme.

The letter further mentioned that the company had received the requisite certificate from the designated authority under the scheme, validating the settlement of the tax dispute. The Senior Departmental Representative (DR), Sh. M. Baranwal, who was representing the Revenue, did not raise any objections to the withdrawal request.

Tribunal’s Findings and Judgment

After considering the request for withdrawal and noting the lack of objections from the Revenue, the ITAT found no reason to keep the appeal pending. The Tribunal acknowledged that Vishwakarma Enterprises (India) Private Limited had successfully settled its tax dispute under the Vivad Se Vishwas Scheme and had complied with all the necessary requirements under the law.

As a result, the ITAT accepted the withdrawal request and dismissed the appeal as withdrawn. This decision was in line with the provisions of the Vivad Se Vishwas Scheme, which allows taxpayers to resolve their disputes and withdraw any pending appeals. The Tribunal’s order was pronounced on 31st August 2021, officially concluding the appeal process.

Conclusion

The case of Vishwakarma Enterprises (India) Private Limited vs. ITO Ward-26(4) serves as an example of how the Vivad Se Vishwas Scheme has provided an effective mechanism for resolving tax disputes. By choosing to settle the dispute under this scheme, Vishwakarma Enterprises (India) Private Limited was able to conclude its legal battles swiftly and avoid the uncertainties of prolonged litigation.

The Tribunal’s decision to allow the withdrawal underscores the success of the Vivad Se Vishwas Scheme in reducing the backlog of tax-related cases and providing a clear path for taxpayers to resolve disputes amicably. This case also highlights the importance of considering alternative dispute resolution mechanisms, such as the Vivad Se Vishwas Scheme, to achieve a quicker and more certain resolution of tax matters.

Order Pronounced in the Open Court on 31st August 2021

Signed by:
Vice President: Shri G.S. Pannu
Judicial Member: Ms. Suchitra Kamble

Date of Pronouncement: 31st August 2021

Vishwakarma Enterprises (India) Private Limited vs. ITO Ward-26(4): Withdrawal of Appeal Under Vivad Se Vishwas Scheme for Assessment Year 2015-16