Settlement of Tax Dispute: Dinesh vs. ITO Ward-1(2), Ghaziabad (ITA 6161/DEL/2019)

Introduction

The case ITA No. 6161/DEL/2019 revolves around a tax dispute between Dinesh, a resident of Ghaziabad, and the Income Tax Officer of Ward-1(2), Ghaziabad, concerning the assessment year 2009-10. The dispute was ultimately resolved through the Vivad Se Vishwas Scheme, a government initiative aimed at reducing litigation in direct tax matters.

Case Background

Dinesh, a taxpayer from Ghaziabad, faced discrepancies in his tax assessment for the year 2009-10. The original assessment was challenged, leading to an appeal before the Commissioner of Income Tax (Appeals), Ghaziabad. The appeal primarily focused on disputed additions made by the assessing officer, which were not fully justified according to the appellant.

Proceedings and Legal Developments

The appeal was brought before the Income Tax Appellate Tribunal (ITAT), where it was reviewed by Shri Anil Chaturvedi, Accountant Member. During the proceedings, which were held via video conferencing, the appellant’s representative informed the tribunal that Dinesh had opted for the Vivad Se Vishwas Scheme. Forms 1 and 2 were duly filed, and Form 3 was issued by the department, indicating that the matter was under consideration for settlement.

Tribunal’s Decision

The tribunal accepted the request for withdrawal of the appeal, dismissing it with a provision. This provision allowed for the possibility of reinstating the appeal if the settlement under the Vivad Se Vishwas Scheme was not finalized. The tribunal’s decision underscores the flexibility and responsiveness of the judicial system in accommodating alternative dispute resolution mechanisms like the Vivad Se Vishwas Scheme.

Conclusion

The resolution of ITA No. 6161/DEL/2019 through the Vivad Se Vishwas Scheme demonstrates the scheme’s effectiveness in settling tax disputes without prolonged litigation. This case serves as an example of the government’s efforts to reduce the backlog of tax disputes, promoting a more efficient and taxpayer-friendly environment.

Settlement of Tax Dispute: Dinesh vs. ITO Ward-1(2), Ghaziabad (ITA 6161/DEL/2019)