Shibu Kappiarumalayil Mathew vs. ITO: Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2010-11

Shibu Kappiarumalayil Mathew vs. ITO: Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2010-11

Case Number: ITA 6293/DEL/2019

Appellant: Shibu Kappiarumalayil Mathew, New Delhi

Respondent: Income Tax Officer, Ward-62(3), New Delhi

Assessment Year: 2010-11

Order Type: Final Tribunal Order

Date of Order: December 7, 2022

Pronounced On: December 7, 2022

Case Filed On: July 26, 2019

Tribunal Bench: Delhi Bench G: New Delhi

Judges: Shri Shamim Yahya (Accountant Member) and Shri Chandra Mohan Garg (Judicial Member)

Background of the Case

The appellant, Shibu Kappiarumalayil Mathew, filed an appeal against the Income Tax Officer, Ward-62(3), New Delhi, for the assessment year 2010-11. The appeal was directed against the order passed by the Commissioner of Income Tax (Appeals)-20, New Delhi, on May 31, 2019. The case involved disputes related to the assessment of tax liabilities for the relevant assessment year, which the appellant believed were not correctly calculated.

Reason for Filing the Appeal

The appeal was initially filed by Shibu Kappiarumalayil Mathew to contest the tax demands raised by the Income Tax Department for the assessment year 2010-11. The appellant sought to challenge the assessment order on grounds that the tax liabilities imposed were excessive and not reflective of his actual income and tax deductions applicable during that year.

Settlement under the Vivad Se Vishwas Scheme, 2020

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme, 2020. This scheme aimed at reducing litigation and providing taxpayers with an opportunity to settle their disputes with the Income Tax Department. The scheme allowed taxpayers to resolve disputes by paying a percentage of the disputed tax amount, thereby receiving immunity from further litigation.

Shibu Kappiarumalayil Mathew opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was filed by the appellant, confirming that the tax arrears related to the assessment year 2010-11 were settled under the scheme.

Withdrawal of the Appeal

On December 7, 2022, during the hearing of the case, the Authorized Representative of the appellant did not appear, but a letter was submitted requesting the withdrawal of the appeal. The request was made following the successful settlement under the Vivad Se Vishwas Scheme. The respondent’s representative, Sh. Abhishek Kumar, Sr. DR, had no objection to the withdrawal of the appeal.

Given the request for withdrawal, the Income Tax Appellate Tribunal (ITAT) accepted the withdrawal and dismissed the appeal as withdrawn. The decision was pronounced at the conclusion of the virtual hearing on December 7, 2022, in the presence of both parties.

Final Order

The final order was delivered by Shri Shamim Yahya, Accountant Member, and Shri Chandra Mohan Garg, Judicial Member, who constituted the bench. The bench concluded that the appeal filed by Shibu Kappiarumalayil Mathew for the assessment year 2010-11 was dismissed as withdrawn due to the settlement of the dispute under the Vivad Se Vishwas Scheme, 2020.

This decision marks the conclusion of the litigation process for the appellant, providing relief from the contested tax liabilities for the assessment year in question.

Conclusion

The case of Shibu Kappiarumalayil Mathew vs. ITO for the assessment year 2010-11 is a clear example of the effectiveness of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes. By opting for this scheme, the appellant was able to amicably resolve the dispute without engaging in prolonged litigation. The withdrawal of the appeal under the scheme highlights its role in reducing the burden on both taxpayers and the judiciary.

The ITAT’s acceptance of the withdrawal and dismissal of the appeal underscores the importance of such schemes in promoting a more efficient tax dispute resolution process. The success of the Vivad Se Vishwas Scheme, 2020, in this case, serves as a positive precedent for other individuals and taxpayers facing similar disputes.

By withdrawing the appeal, Shibu Kappiarumalayil Mathew benefited from the government’s initiative to streamline tax dispute resolution, ensuring that the case was resolved quickly and with certainty. This outcome demonstrates the value of government schemes designed to encourage dispute resolution without the need for lengthy and expensive litigation.

Overall, the Vivad Se Vishwas Scheme’s implementation and its positive outcomes, as evidenced in this case, reinforce the government’s commitment to easing the tax compliance process and providing practical avenues for dispute resolution. The scheme’s success in this case not only resolved a significant tax dispute but also set a benchmark for other taxpayers seeking similar resolutions.

The withdrawal of the appeal by Shibu Kappiarumalayil Mathew under the Vivad Se Vishwas Scheme highlights the scheme’s effectiveness in achieving its goals and underscores its importance in the broader context of tax administration and compliance in India. The case serves as a reminder that such schemes can be a valuable tool for taxpayers seeking to resolve disputes efficiently and fairly.

As more taxpayers opt for similar schemes, the overall efficiency of the tax dispute resolution process is likely to improve, contributing to a more cooperative relationship between taxpayers and the tax authorities. This case sets a positive example for the broader taxpayer community and demonstrates how proactive measures can lead to favorable outcomes for both the taxpayer and the government.

Shibu Kappiarumalayil Mathew vs. ITO: Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2010-11