Aditya Polybanks Pvt Ltd vs ITO Ward-1(3) – Vivad Se Vishwas Case – ITA 6338/DEL/2019

Case Analysis: Aditya Polybanks Pvt Ltd vs ITO Ward-1(3) – ITA 6338/DEL/2019

Case Number: ITA 6338/DEL/2019

Appellant: Aditya Polybanks Pvt Ltd, New Delhi

Respondent: ITO Ward-1(3), New Delhi

Assessment Year: 2011-12

Order Type: Final Tribunal Order

Date of Order: 3rd March 2021

Pronounced on: 3rd March 2021

Case Filed On: 29th July 2019

Background of the Case

The case of Aditya Polybanks Pvt Ltd vs ITO Ward-1(3) concerns the assessment year 2011-12. Aditya Polybanks Pvt Ltd, the appellant, had filed an appeal against the Income Tax Officer (ITO), Ward-1(3), New Delhi, challenging the order passed by the Commissioner of Income Tax (Appeals) – I, New Delhi on 24th June 2019. The appeal arose from a dispute over tax arrears that were assessed for the financial year 2011-12.

Why the Case Was Filed

Aditya Polybanks Pvt Ltd filed this appeal due to disagreements with the tax assessment conducted by the ITO for the year 2011-12. The appellant contested the additional tax liabilities imposed by the tax authorities, which they believed were not justified under the provisions of the Income Tax Act, 1961. This led to the appeal being filed before the Income Tax Appellate Tribunal (ITAT) to seek redressal from the orders of the CIT(A).

The core issue in this appeal was the determination of tax arrears that were disputed by the appellant. This case exemplifies the legal recourse available to taxpayers who wish to challenge tax assessments they consider erroneous or unjustified.

Vivad Se Vishwas Scheme 2020

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme in 2020. This scheme was designed to resolve long-pending tax disputes by offering taxpayers the opportunity to settle their cases with the tax authorities by paying a specified percentage of the disputed tax. The scheme aimed to reduce litigation and bring about quicker resolutions to tax disputes.

Recognizing the benefits of this scheme, Aditya Polybanks Pvt Ltd opted to participate in the Vivad Se Vishwas Scheme. The appellant submitted the necessary declarations under the scheme, including Form-1 (Declaration under Vivad Se Vishwas) and Form-2 (Undertaking), and subsequently obtained Form-3, which confirmed the payment to be made under the scheme.

Tribunal Proceedings

The case was heard by the Delhi Bench SMC-1 of the Income Tax Appellate Tribunal (ITAT) through virtual hearing. The bench comprised Shri R.K. Panda, Accountant Member, and Shri Kuldip Singh, Judicial Member, who presided over the appeal filed by Aditya Polybanks Pvt Ltd.

During the hearing, the appellant’s representative informed the tribunal that Aditya Polybanks Pvt Ltd had opted for the Vivad Se Vishwas Scheme, 2020, and had completed the necessary formalities under the scheme. The appellant requested the withdrawal of the appeal, citing the resolution of the tax dispute under the scheme.

The Senior Departmental Representative (DR), Shri R.K. Gupta, who represented the revenue, did not raise any objections to the appellant’s request to withdraw the appeal. Consequently, the tribunal considered the application for withdrawal.

Tribunal’s Decision

The tribunal, after reviewing the application and the submissions made by both parties, acknowledged that Aditya Polybanks Pvt Ltd had opted for the Vivad Se Vishwas Scheme, 2020, and had received Form-3 from the tax department. The tribunal noted that the appellant had taken the necessary steps to resolve the tax dispute under the scheme.

In light of these developments, Shri R.K. Panda, Accountant Member, allowed the withdrawal of the appeal. The tribunal then dismissed the appeal as withdrawn, noting that the appellant had successfully resolved the tax dispute under the Vivad Se Vishwas Scheme.

The tribunal’s decision was pronounced in the open court on 3rd March 2021, immediately following the conclusion of the virtual hearing.

Final Judgment

In conclusion, the tribunal dismissed the appeal filed by Aditya Polybanks Pvt Ltd as withdrawn after the appellant opted for the Vivad Se Vishwas Scheme, 2020. This case underscores the effectiveness of the Vivad Se Vishwas Scheme in providing a mechanism for the quick resolution of tax disputes, thereby reducing the burden of prolonged litigation on both taxpayers and the tax department.

The order issued by Shri R.K. Panda and Shri Kuldip Singh serves as an example for other taxpayers who may be considering the Vivad Se Vishwas Scheme as a means to settle their tax disputes. The tribunal’s decision highlights the importance of such schemes in promoting efficient tax administration and dispute resolution.

Overall, this case serves as a reminder of the benefits that government-initiated schemes like Vivad Se Vishwas can offer to taxpayers and tax practitioners, facilitating a smoother and more amicable resolution of tax-related issues.

Aditya Polybanks Pvt Ltd vs ITO Ward-1(3) – Vivad Se Vishwas Case – ITA 6338/DEL/2019