Supriya Arya vs. ACIT Delhi: Tax Dispute Settlement under Vivad Se Vishwas Scheme for AY 2015-16

Introduction

The case of Supriya Arya vs. Assistant Commissioner of Income Tax (ACIT), Central Circle-25, New Delhi, pertains to a tax dispute for the assessment year 2015-16. Supriya Arya, a resident of New Delhi, faced tax assessments and demands from the ACIT, which she contested by filing an appeal before the Income Tax Appellate Tribunal (ITAT). This case is particularly notable for its resolution under the Vivad Se Vishwas Scheme, 2020, a government initiative aimed at reducing litigation in tax matters.

Background of the Case

Supriya Arya filed her appeal with the ITAT on July 30, 2019, challenging the order dated June 10, 2019, passed by the Commissioner of Income Tax (Appeals) [CIT(A)]-29, New Delhi. The dispute arose from the assessments and demands made by the ACIT for the financial year 2015-16, which Supriya Arya believed were unjust and legally unsound.

Reasons for Filing the Appeal

The primary reason for filing the appeal was the contestation of the tax assessments and demands raised by the ACIT. Supriya Arya sought relief from the ITAT, arguing that the tax demands were not in accordance with the law and that her income had been incorrectly assessed. The appeal was part of her efforts to seek a fair and just resolution to her tax liabilities for the assessment year 2015-16.

The Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme, introduced by the Indian government, provided a mechanism for taxpayers to settle their pending disputes by paying a specified percentage of the disputed tax amount. The scheme aimed to reduce litigation in direct tax matters and to provide a simplified and efficient means for taxpayers to resolve their disputes with the tax authorities.

Appellant’s Decision to Opt for the Scheme

During the proceedings, Supriya Arya decided to take advantage of the Vivad Se Vishwas Scheme to settle her ongoing tax dispute. On October 31, 2020, her counsel, Shri Kapil Goel, submitted a letter to the ITAT requesting the withdrawal of the appeals filed by Supriya Arya. The letter confirmed that Supriya Arya had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020, and had obtained the necessary certificates under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020.

Tribunal’s Decision

The ITAT bench, consisting of Vice President Shri G.S. Pannu and Judicial Member Shri Amit Shukla, reviewed the request for withdrawal. The CIT-DR, representing the respondent, raised no objections to the withdrawal. As a result, the ITAT accepted the request and dismissed the appeals as withdrawn. The tribunal’s decision was pronounced on November 19, 2020, during a virtual hearing.

Significance of the Case

This case is an excellent example of the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for this scheme, Supriya Arya was able to bring a swift and conclusive end to her tax-related issues for the assessment year 2015-16. The scheme provided a streamlined and efficient process for settling disputes, which benefitted both the taxpayer and the tax authorities by reducing the burden of prolonged litigation.

Conclusion

The resolution of the case of Supriya Arya vs. ACIT, Central Circle-25, New Delhi, under the Vivad Se Vishwas Scheme underscores the importance of such initiatives in the Indian tax system. The case highlights how taxpayers can effectively utilize government schemes to resolve disputes and avoid the complexities of prolonged legal battles. Supriya Arya’s decision to settle her tax dispute under this scheme serves as a valuable precedent for other taxpayers facing similar challenges.

Supriya Arya vs. ACIT Delhi: Tax Dispute Settlement under Vivad Se Vishwas Scheme for AY 2015-16