Savita Rani Arya vs. ACIT Central Circle-25: Tax Resolution for AY 2014-15

Introduction

The case of Savita Rani Arya vs. Assistant Commissioner of Income Tax (ACIT), Central Circle-25, New Delhi covers the assessment year 2014-15. This article delves into the dispute details, the legal arguments presented, and the resolution under the Vivad Se Vishwas Scheme.

Case Background

Savita Rani Arya filed an appeal against the order of the Commissioner of Income Tax (Appeals)-29, New Delhi, which pertained to the assessment year 2014-15. The appeal was logged under case number ITA 6397/DEL/2019. The hearings and final pronouncement occurred via video conferencing on November 19, 2020, amidst the global pandemic.

Proceedings Overview

The appellant was represented by Shri Kapil Goel, Advocate, while the respondent, ACIT Central Circle-25, was represented by Shri H.K. Choudhary, CIT-DR. The primary legal discussions revolved around the tax assessments and the corresponding grievances of the appellant concerning the fiscal year 2014-15.

During the proceedings, significant emphasis was placed on the discrepancies and disagreements over the tax assessments made by the ACIT. The appellant contested these on various grounds, seeking relief and correction of what was deemed as excessive or unjust tax demands.

Vivad Se Vishwas Scheme

The case took a significant turn when the appellant opted to resolve the dispute under the Vivad Se Vishwas Scheme, introduced by the Indian government to reduce litigation and allow tax disputes to be settled amicably. This scheme provided a platform for taxpayers to settle disputes by paying the disputed taxes with waivers on penalties and interest under certain conditions.

The decision to opt for this scheme was communicated through a letter dated October 31, 2020. The appellant submitted this request for withdrawal of the ongoing appeal in favor of settling the dispute under the scheme, which was accompanied by the necessary certificates under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020.

Decision and Implications

The tribunal, led by Vice President Shri G.S. Pannu and Judicial Member Shri Amit Shukla, accepted the withdrawal of the appeal. The learned CIT-DR did not object to this resolution, leading to a dismissal of the appeal as withdrawn. This marked the conclusion of the legal proceedings, with the tribunal’s decision announced in the presence of both parties.

The resolution under the Vivad Se Vishwas Scheme allowed the appellant to settle the tax dispute out of court, providing a clear, structured, and less adversarial means to resolve tax issues. This case exemplifies the effectiveness of alternative dispute resolution mechanisms in tax matters, offering a precedent for similar future disputes.

Conclusion

The case of Savita Rani Arya vs. ACIT Central Circle-25 highlights the challenges taxpayers face in disputes with tax authorities and the potential relief offered through government schemes like Vivad Se Vishwas. This resolution not only simplified the legal landscape for the appellant but also reinforced the importance of such schemes in reducing litigation and fostering a cooperative environment between taxpayers and tax authorities.

Savita Rani Arya vs. ACIT Central Circle-25: Tax Resolution for AY 2014-15