Sneh Finance Pvt. Ltd. vs ACIT Circle-24(1), Delhi – ITA 6343/DEL/2019 – Vivad Se Vishwas Scheme

Case Analysis: Sneh Finance Pvt. Ltd. vs ACIT Circle-24(1), New Delhi – ITA 6343/DEL/2019

Case Number: ITA 6343/DEL/2019

Appellant: Sneh Finance Pvt. Ltd., New Delhi

Respondent: ACIT Circle-24(1), New Delhi

Assessment Year: 2010-11

Order Type: Final Tribunal Order

Date of Order: 29th December 2020

Pronounced on: 29th December 2020

Case Filed On: 29th July 2019

Background of the Case

The case of Sneh Finance Pvt. Ltd. vs ACIT Circle-24(1), New Delhi concerns the assessment year 2010-11. Sneh Finance Pvt. Ltd., a company based in New Delhi, filed an appeal against the assessment order issued by the Assistant Commissioner of Income Tax (ACIT) Circle-24(1), New Delhi. The appellant contested the assessment, seeking relief from the orders that it deemed unfair or incorrect under the Income Tax Act, 1961.

Why the Case Was Filed

The appellant, Sneh Finance Pvt. Ltd., filed this appeal challenging the assessment order issued by the ACIT Circle-24(1), New Delhi, for the assessment year 2010-11. The appellant contended that the assessment included discrepancies and that certain conclusions drawn by the assessing officer were not in line with the provisions of the law. This appeal was crucial for the appellant to seek a reassessment and potentially reduce the tax liability that had been determined by the ACIT.

However, during the pendency of the appeal, the appellant opted to settle the ongoing tax dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the Government of India to provide a mechanism for taxpayers to settle tax disputes amicably, avoiding prolonged litigation and associated costs.

Tribunal Proceedings

The appeal was heard by the Delhi Bench ‘C’ of the Income Tax Appellate Tribunal (ITAT) on 29th December 2020. The tribunal session was conducted via video conferencing due to the COVID-19 pandemic. The bench consisted of Shri G.S. Pannu, Vice President, and Shri K.N. Chary, Judicial Member.

During the proceedings, the appellant, represented by its counsel, submitted a request for the withdrawal of the appeal. The appellant’s counsel informed the tribunal that the company had decided to settle the tax dispute under the Vivad Se Vishwas Scheme, 2020. A certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, was also presented to the tribunal, confirming the appellant’s participation in the scheme.

In response to the withdrawal request, the Senior Departmental Representative (DR), Shri Gaurav Dudeja, raised no objections. After reviewing the request and the certificate provided, the tribunal agreed to the withdrawal of the appeal.

Tribunal’s Decision

The Income Tax Appellate Tribunal (ITAT) accepted the appellant’s request to withdraw the appeal. As a result, the appeal filed by Sneh Finance Pvt. Ltd. was dismissed as withdrawn. The tribunal’s order was pronounced on 29th December 2020, immediately following the conclusion of the virtual hearing.

The order was signed by both members of the bench, Shri G.S. Pannu, Vice President, and Shri K.N. Chary, Judicial Member, ensuring that the decision was unanimous and transparent.

Significance of the Case

This case illustrates the effectiveness of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes. By opting for the scheme, Sneh Finance Pvt. Ltd. was able to resolve its tax-related issues for the assessment year 2010-11 without further legal proceedings. This allowed the company to avoid the uncertainties and expenses associated with prolonged litigation.

The tribunal’s acceptance of the withdrawal under the Vivad Se Vishwas Scheme highlights the scheme’s role in reducing the burden of pending cases in the judicial system and providing taxpayers with an efficient resolution mechanism. The scheme encourages taxpayers to settle disputes with finality, thus contributing to a more streamlined tax litigation process.

Moreover, this case underscores the importance of alternative dispute resolution mechanisms in the tax litigation process. The Vivad Se Vishwas Scheme, in particular, offers a practical solution for taxpayers to address outstanding tax issues in a manner that is fair and economically viable.

The case of Sneh Finance Pvt. Ltd. vs ACIT Circle-24(1), New Delhi serves as an example for other taxpayers considering the Vivad Se Vishwas Scheme as a means to settle disputes. It reaffirms the tribunal’s role in facilitating the resolution of tax disputes through fair and transparent proceedings, and it showcases the benefits of opting for such a settlement scheme when faced with complex tax litigation.

Sneh Finance Pvt. Ltd. vs ACIT Circle-24(1), Delhi – ITA 6343/DEL/2019 – Vivad Se Vishwas Scheme