Shree Ambuja Castings Pvt. Ltd. vs ITO: Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2010-11

Case Overview: Shree Ambuja Castings Pvt. Ltd. vs ITO, Ward 23(3), New Delhi

Case Number: ITA 6242/DEL/2019

Appellant: Shree Ambuja Castings Pvt. Ltd., Delhi

Respondent: Income Tax Officer, Ward 23(3), New Delhi

Assessment Year: 2010-11

Case Filed On: 2019-07-23

Order Type: Final Tribunal Order

Date of Order: 2020-11-24

Pronounced On: 2020-11-24

Introduction

The case of Shree Ambuja Castings Pvt. Ltd. vs Income Tax Officer, Ward 23(3), New Delhi pertains to an appeal filed by the appellant for the assessment year 2010-11. The appeal was directed against the order of the learned Commissioner of Income Tax (Appeals) [CIT(A)], New Delhi, dated 10.06.2019. However, the appellant opted to withdraw the appeal under the Vivad Se Vishwas Scheme, 2020, leading to its dismissal by the Income Tax Appellate Tribunal (ITAT), Delhi.

Background of the Case

Shree Ambuja Castings Pvt. Ltd., a company based in Delhi, had filed an appeal with the ITAT challenging the order of the CIT(A) for the assessment year 2010-11. The details of the dispute and the grounds of the appeal were not argued before the Tribunal as the appellant chose to settle the matter under the Vivad Se Vishwas Scheme, 2020, a dispute resolution mechanism introduced by the Government of India.

The Vivad Se Vishwas Scheme was introduced as a part of the Union Budget 2020 with the objective of reducing litigation and resolving disputes related to direct taxes. Under this scheme, taxpayers were given an opportunity to settle their tax disputes by paying the disputed tax amount and receiving a waiver of interest and penalty.

Request for Withdrawal under Vivad Se Vishwas Scheme

On 05.10.2020, Shree Ambuja Castings Pvt. Ltd. submitted a letter to the ITAT, requesting the withdrawal of its appeal. The company informed the Tribunal that it had opted to settle the tax arrears for the assessment year under consideration through the Vivad Se Vishwas Scheme, 2020. The appellant also provided a certificate issued under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, as evidence of its decision to settle the dispute.

The learned Senior Departmental Representative (DR) representing the Income Tax Department had no objection to the appellant’s request for withdrawal of the appeal. Consequently, the Tribunal proceeded to consider the request for withdrawal.

Tribunal’s Decision

The ITAT Delhi Bench, comprising Vice President Shri G.S. Pannu and Judicial Member Smt. Madhumita Roy, took into account the appellant’s request for withdrawal under the Vivad Se Vishwas Scheme. After reviewing the submission and the certificate provided by the appellant, the Tribunal found no reason to deny the request.

In view of the appellant’s decision to settle the dispute under the Vivad Se Vishwas Scheme, the Tribunal accepted the request for withdrawal and dismissed the appeal as withdrawn.

Conclusion and Implications

The dismissal of the appeal in the case of Shree Ambuja Castings Pvt. Ltd. vs ITO under the Vivad Se Vishwas Scheme reflects the growing trend of taxpayers opting for dispute resolution mechanisms to settle their tax disputes. By availing of the Vivad Se Vishwas Scheme, the appellant was able to resolve the matter without further litigation, benefiting from the waiver of interest and penalties provided under the scheme.

This case serves as an example of how the Vivad Se Vishwas Scheme has been instrumental in reducing the burden of pending litigation in the Indian tax system. It highlights the advantages of opting for such schemes, particularly for companies looking to avoid prolonged legal battles and achieve a swift resolution of their tax disputes.

Order Pronounced on 24th November, 2020

Vice President: G.S. Pannu

Judicial Member: Madhumita Roy

Shree Ambuja Castings Pvt. Ltd. vs ITO: Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2010-11