Six Sigma Realty Pvt Ltd vs ITO Ward 23(5): Appeal Dismissed as Withdrawn Under Vivad se Vishwas Scheme for AY 2014-15

Case Overview: Six Sigma Realty Pvt Ltd vs ITO Ward 23(5)

Case Number: ITA 6237/DEL/2019

Appellant: Six Sigma Realty Pvt Ltd, New Delhi

Respondent: ITO Ward-23(5), New Delhi

Assessment Year: 2014-15

Case Filed On: 2019-07-23

Order Type: Final Tribunal Order

Date of Order: 2021-03-22

Pronounced On: 2021-03-22

Introduction

The case of Six Sigma Realty Pvt Ltd vs ITO Ward 23(5) concerns the assessment year 2014-15. The appeal was filed by Six Sigma Realty Pvt Ltd against the order dated 29/05/2019 passed by the Commissioner of Income Tax (Appeals)-XXV, New Delhi. The appeal was related to pending tax disputes, which the appellant sought to resolve through the Direct Tax “Vivad se Vishwas Scheme” (VSV) Act, 2020.

Background of the Case

Six Sigma Realty Pvt Ltd filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging the order of the CIT(A) regarding the assessment year 2014-15. However, during the pendency of the appeal, the appellant opted to resolve the tax dispute under the Vivad se Vishwas Scheme, 2020, introduced by the Government of India to reduce litigation in direct taxes. The appellant submitted the required forms, including Declaration Form No. 1 & 2, and received Form No. 3 dated 20.11.2020, indicating acceptance of their application under the scheme.

Key Points of the Case

The key points raised in the case include:

• The appellant’s decision to resolve the pending tax dispute under the Vivad se Vishwas Scheme, 2020.
• The submission of the necessary forms and the receipt of Form No. 3, indicating the scheme’s acceptance.
• The request to withdraw the appeal in light of the application under the scheme.

Tribunal’s Decision

The Tribunal, comprising Shri N. K. Billaiya, Accountant Member, and Ms. Suchitra Kamble, Judicial Member, took into consideration the submissions made by the appellant regarding the resolution of the tax dispute under the Vivad se Vishwas Scheme. Given that the appellant had filed the necessary forms and the application had been accepted, the Tribunal decided to dismiss the appeal as withdrawn.

However, the Tribunal also included a caveat in its order. The Tribunal stated that if the tax dispute for the assessment year 2014-15 is not ultimately resolved under the Vivad se Vishwas Scheme, the appellant would have the liberty to approach the Tribunal for the reinstitution of the appeal. The Tribunal would then consider the appeal for reinstitution in accordance with the law.

Conclusion and Order

The ITAT dismissed the appeal of Six Sigma Realty Pvt Ltd as withdrawn, subject to the condition that the appellant could reinstitute the appeal if the dispute is not resolved under the Vivad se Vishwas Scheme. This decision highlights the Tribunal’s consideration of alternative dispute resolution mechanisms and its flexibility in allowing the reinstitution of appeals if necessary.

Order Pronounced in the Open Court on 22nd March, 2021.

Accountant Member: N. K. Billaiya

Judicial Member: Suchitra Kamble

Six Sigma Realty Pvt Ltd vs ITO Ward 23(5): Appeal Dismissed as Withdrawn Under Vivad se Vishwas Scheme for AY 2014-15