Aditya Arya vs. ACIT Central Circle-25: Tax Dispute Resolution for AY 2014-15

Introduction

The case of Aditya Arya vs. Assistant Commissioner of Income Tax (ACIT), Central Circle-25, New Delhi pertains to the assessment year 2014-15. The appellant, Aditya Arya, sought to challenge the tax assessment made by the ACIT, which led to the filing of an appeal. However, the dispute was ultimately resolved under the Vivad Se Vishwas Scheme, 2020. This article provides a detailed overview of the case, the legal proceedings, and the resolution process.

Background of the Case

Aditya Arya, a resident of New Delhi, faced a tax assessment for the assessment year 2014-15, which was conducted by the ACIT, Central Circle-25, New Delhi. The assessment led to certain tax liabilities that Arya contested, resulting in the filing of an appeal with the Income Tax Appellate Tribunal (ITAT), New Delhi.

The case was registered under the number ITA 6396/DEL/2019 and was scheduled for hearing and pronouncement on November 19, 2020. The appeal was directed against the order issued by the Commissioner of Income Tax (Appeals)-29, New Delhi, dated June 10, 2019.

Legal Proceedings

The legal proceedings for this case involved a series of hearings and submissions. The appellant’s counsel, Shri Kapil Goel, CA, represented Aditya Arya, while the respondent, ACIT Central Circle-25, was represented by Shri H.K. Choudhary, CIT-DR.

During the hearings, the appellant’s counsel submitted various arguments contesting the tax assessment made by the ACIT. However, before the final decision could be made by the ITAT, the appellant decided to opt for the Vivad Se Vishwas Scheme, 2020, which provides a mechanism for settling tax disputes with reduced penalties and interest.

Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme was introduced by the Indian government as part of its efforts to reduce litigation in direct tax disputes. Under this scheme, taxpayers were given the option to settle their pending disputes by paying the disputed tax amount, with significant relief provided on interest and penalties.

In this case, Aditya Arya decided to avail the benefits of the scheme. On October 31, 2020, a formal request for withdrawal of the appeal was submitted by Arya’s counsel, citing the decision to settle the dispute under the Vivad Se Vishwas Scheme. A certificate confirming the settlement under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also filed with the tribunal.

Tribunal’s Decision

On November 19, 2020, the ITAT, comprising Vice President Shri G.S. Pannu and Judicial Member Shri Amit Shukla, took up the case for final hearing. After reviewing the request for withdrawal and the certificate provided under the Vivad Se Vishwas Scheme, the tribunal decided to accept the withdrawal of the appeal.

The tribunal noted that the respondent’s representative, Shri H.K. Choudhary, CIT-DR, had no objection to the withdrawal request. Consequently, the tribunal dismissed the appeal as withdrawn, marking the conclusion of the tax dispute between Aditya Arya and the ACIT, Central Circle-25, for the assessment year 2014-15.

Implications of the Resolution

The resolution of this case under the Vivad Se Vishwas Scheme is significant for several reasons. Firstly, it underscores the effectiveness of the scheme in providing a viable alternative to prolonged litigation. By opting for the scheme, Aditya Arya was able to settle the tax dispute swiftly and avoid the potential burden of additional penalties and interest.

Secondly, this case serves as a precedent for other taxpayers facing similar disputes. The willingness of the tribunal to accept the withdrawal and the smooth processing of the settlement under the Vivad Se Vishwas Scheme highlight the benefits of utilizing such government initiatives for dispute resolution.

Conclusion

The case of Aditya Arya vs. ACIT Central Circle-25 demonstrates the positive impact of the Vivad Se Vishwas Scheme on tax dispute resolution in India. The appellant’s decision to withdraw the appeal and settle the matter under the scheme allowed for a quick and efficient resolution. This case serves as an important example for taxpayers and legal practitioners, showcasing the advantages of alternative dispute resolution mechanisms in the Indian tax system.

Aditya Arya vs. ACIT Central Circle-25: Tax Dispute Resolution for AY 2014-15