Star Wire (India) Biomass Pvt. Ltd vs ITO Ward 24(2), New Delhi: Appeal Withdrawn Under Vivad Se Vishwas Scheme for Assessment Year 2008-09

Star Wire (India) Biomass Pvt. Ltd vs ITO Ward 24(2), New Delhi: Appeal Withdrawn Under Vivad Se Vishwas Scheme for Assessment Year 2008-09

Case Number: ITA 6112/DEL/2019

Appellant: Star Wire (India) Biomass Pvt. Ltd, New Delhi

Respondent: ITO Ward 24(2), New Delhi

Assessment Year: 2008-09

Order Type: Final Tribunal Order

Date of Order: 8th January 2021

Case Filed On: 18th July 2019

Pronounced On: 8th January 2021

Background of the Case

Star Wire (India) Biomass Pvt. Ltd, a company based in New Delhi, filed an appeal against the Income Tax Officer (ITO), Ward 24(2), New Delhi, for the assessment year 2008-09. This appeal, under case number ITA 6112/DEL/2019, was directed against an order passed by the Commissioner of Income Tax (Appeals) [CIT(A)], New Delhi, dated 2nd May 2019.

The appellant had initially contested the assessment order passed by the ITO, which had led to certain additions to its income. These additions were disputed, leading to the filing of the appeal before the Income Tax Appellate Tribunal (ITAT). However, before the tribunal could adjudicate the matter, a significant development led to the withdrawal of the appeal.

Grounds for Filing the Appeal

The appellant, Star Wire (India) Biomass Pvt. Ltd, had filed the appeal to challenge the assessment order that included contested additions made by the ITO. The appeal was grounded on the belief that the additions were unjustified and not in accordance with the law. The appellant sought relief from the tribunal to have the contested additions reversed.

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme, 2020, a tax dispute resolution scheme aimed at reducing pending litigation. The scheme allowed taxpayers to settle their disputes by paying a specified amount of the disputed tax and receiving immunity from interest, penalties, and prosecution.

Tribunal Proceedings

The case was listed for hearing before the Delhi Bench ‘A’ of the Income Tax Appellate Tribunal (ITAT) on 8th January 2021. The bench was presided over by Vice President Shri G.S. Pannu and Judicial Member Shri Sudhanshu Srivastava. The appellant did not appear for the hearing, but the tribunal considered a letter submitted by the appellant’s counsel on 5th January 2021, indicating the appellant’s decision to withdraw the appeal under the Vivad Se Vishwas Scheme.

The appellant’s counsel informed the tribunal that the appellant had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020, and that a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, had already been issued in favor of the appellant. Given this development, the appellant requested the withdrawal of the appeal.

Final Tribunal Order

In light of the information provided by the appellant’s counsel, the tribunal granted permission for the appeal to be withdrawn. The tribunal noted that since the dispute had been settled under the Vivad Se Vishwas Scheme, there was no need for further adjudication on the merits of the case.

Accordingly, the tribunal dismissed the appeal as withdrawn, bringing the matter to a close. The tribunal’s order was pronounced on 8th January 2021.

Conclusion

The case of Star Wire (India) Biomass Pvt. Ltd vs ITO Ward 24(2), New Delhi, illustrates the successful application of the Vivad Se Vishwas Scheme in resolving pending tax disputes. By opting for this scheme, the appellant was able to settle the dispute efficiently and avoid prolonged litigation. The tribunal’s decision to dismiss the appeal as withdrawn reflects the effectiveness of the scheme in reducing the backlog of tax-related cases.

This case serves as a reference point for taxpayers considering the Vivad Se Vishwas Scheme as a viable option for settling disputes. It underscores the benefits of opting for such alternative dispute resolution mechanisms introduced by the government to foster a more cooperative and less contentious tax environment.

Note: The above summary provides an overview of the tribunal proceedings and the final order in the case of Star Wire (India) Biomass Pvt. Ltd. For a more detailed understanding, interested parties are encouraged to refer to the full text of the tribunal’s order dated 8th January 2021.

Sd/-
(SUDHANSHU SRIVASTAVA)
JUDICIAL MEMBER

Sd/-
(G.S. PANNU)
VICE PRESIDENT

Assistant Registrar

Star Wire (India) Biomass Pvt. Ltd vs ITO Ward 24(2), New Delhi: Appeal Withdrawn Under Vivad Se Vishwas Scheme for Assessment Year 2008-09