Otsu Sales Pvt Ltd vs ITO Ward 19(2), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2011-12

Otsu Sales Pvt Ltd vs ITO Ward 19(2), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2011-12

Case Number: ITA 6102/DEL/2019

Appellant: Otsu Sales Pvt Ltd, New Delhi

Respondent: ITO Ward 19(2), New Delhi

Assessment Year: 2011-12

Order Type: Final Tribunal Order

Date of Order: 10th December 2020

Case Filed On: 18th July 2019

Pronounced On: 10th December 2020

Background of the Case

Otsu Sales Pvt Ltd, a New Delhi-based company, filed an appeal against the Income Tax Officer (ITO), Ward 19(2), New Delhi, for the assessment year 2011-12. This appeal was brought before the Income Tax Appellate Tribunal (ITAT), Delhi Bench, under case number ITA 6102/DEL/2019. The company contested the order issued by the learned Commissioner of Income Tax (Appeals)-7 [CIT(A)], New Delhi, dated 24th May 2019.

The appeal was filed due to disputes over the tax assessments for the year 2011-12, where the appellant sought relief from the demands levied by the tax authorities. However, before the tribunal could render a decision, a significant development led to the withdrawal of the appeal.

Vivad Se Vishwas Scheme

In 2020, the Government of India introduced the Vivad Se Vishwas Scheme, a dispute resolution mechanism aimed at settling pending tax disputes. The scheme allowed taxpayers to pay a specified percentage of the disputed tax and, in return, gain immunity from interest, penalties, and prosecution.

Otsu Sales Pvt Ltd chose to settle its tax disputes for the assessment year 2011-12 under this scheme. This decision led to the company’s withdrawal of its appeal that was pending before the ITAT.

Tribunal Proceedings

The case was scheduled for a Virtual Hearing before the Delhi Bench ‘A’ of the ITAT on 10th December 2020. The bench was presided over by Vice President Shri G.S. Pannu and Judicial Member Shri Amit Shukla. Despite the hearing, no representative appeared on behalf of the assessee.

Instead, the learned counsel for the assessee submitted a request for withdrawal via an email dated 8th December 2020. The email indicated that the assessee had opted to resolve the dispute under the Vivad Se Vishwas Scheme, 2020. The required certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also presented to confirm the settlement of tax arrears for the relevant assessment year.

Final Tribunal Order

The tribunal, after considering the request and noting that the learned Senior Departmental Representative (DR), Shri Shriprakash Dubey, had no objections, accepted the withdrawal of the appeal. The appeal was subsequently dismissed as withdrawn.

The final order was pronounced immediately following the conclusion of the Virtual Hearing on 10th December 2020. This marked the official closure of the case, with the tax dispute for the assessment year 2011-12 resolved under the Vivad Se Vishwas Scheme.

Conclusion

The case of Otsu Sales Pvt Ltd vs ITO Ward 19(2), New Delhi, is a clear illustration of how the Vivad Se Vishwas Scheme facilitated the resolution of tax disputes. By opting for this scheme, Otsu Sales Pvt Ltd effectively resolved its tax liabilities for the assessment year 2011-12, avoiding prolonged litigation.

This case exemplifies the effectiveness of government-introduced alternative dispute resolution mechanisms, such as the Vivad Se Vishwas Scheme, in reducing litigation and fostering a more cooperative tax environment.

Note: The above summary provides an overview of the tribunal proceedings and the final order in the case of Otsu Sales Pvt Ltd. For a more detailed understanding, interested parties are encouraged to review the full text of the tribunal’s order dated 10th December 2020.

Sd/-
(AMIT SHUKLA)
JUDICIAL MEMBER

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

Assistant Registrar

Otsu Sales Pvt Ltd vs ITO Ward 19(2), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2011-12