Virender Kumar vs ITO, Ward-4(1), New Delhi: Appeal Dismissed under Vivad Se Vishwas Scheme

Case Summary: Virender Kumar vs ITO, Ward-4(1), New Delhi

Case Number: ITA 6070/DEL/2019
Appellant: Virender Kumar, Ambala Cantt
Respondent: Income Tax Officer (ITO), Ward-4(1), New Delhi
Assessment Year: 2015-16
Case Filed On: 16th July 2019
Order Type: Final Tribunal Order
Date of Order: 4th January 2023
Pronounced On: 4th January 2023

Introduction

This case involves an appeal filed by Virender Kumar against the Income Tax Officer (ITO), Ward-4(1), New Delhi, concerning the assessment year 2015-16. The appeal was dismissed by the Income Tax Appellate Tribunal (ITAT) under the provisions of the Direct Tax Vivad Se Vishwas Act, 2020, following a request for withdrawal of the appeal after reaching a settlement under the scheme.

Background of the Case

Virender Kumar, a resident of Ambala Cantt, filed an appeal before the ITAT challenging the appellate order dated 16th April 2019, passed by the Commissioner of Income Tax (Appeals)-2, New Delhi. The appeal was related to certain tax arrears assessed for the financial year 2014-15 (assessment year 2015-16). During the proceedings, Virender Kumar decided to opt for the Vivad Se Vishwas Scheme, 2020, a tax dispute resolution mechanism introduced by the Government of India.

The Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme, 2020, was introduced by the Government of India to resolve pending direct tax disputes. Under this scheme, taxpayers could settle their tax disputes by paying the disputed tax amount, with the benefit of waiver of interest, penalty, and prosecution. Once the taxpayer made the payment and the designated authority issued a certificate under Section 5(1) of the Act, the appeal pending before any tribunal or court was deemed to have been withdrawn.

Proceedings Before the ITAT

During the hearing on 21st December 2022, no one appeared on behalf of Virender Kumar. However, an application for the withdrawal of the appeal was submitted on behalf of the appellant, indicating that a settlement had been reached under the Vivad Se Vishwas Scheme, 2020. The appellant also submitted Form 5 under the Act, confirming that the designated authority had issued a certificate under Section 5(1) of the Act.

Tribunal’s Findings and Decision

The ITAT, comprising Shri Shamim Yahya (Accountant Member) and Shri Anubhav Sharma (Judicial Member), considered the application and the provisions of the Vivad Se Vishwas Act, 2020. The Tribunal observed that under sub-section (2) of Section 4 of the Act, once a certificate is issued under Section 5(1), the appeal pending before the Tribunal is deemed to have been withdrawn from the date on which the certificate is issued.

Accordingly, the Tribunal dismissed the appeal filed by Virender Kumar, noting that the tax dispute had been settled under the Vivad Se Vishwas Scheme, 2020.

Caveat Provided by the Tribunal

In its order, the ITAT included a caveat, stating that if the dispute relating to the tax arrears for the assessment year 2015-16 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 assured that any such application would be considered appropriately as per law.

Conclusion

The case of Virender Kumar vs ITO, Ward-4(1), New Delhi, highlights the effectiveness of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes. The Tribunal’s dismissal of the appeal, following the appellant’s settlement under the scheme, reinforces the scheme’s purpose of reducing litigation and providing relief to taxpayers. The inclusion of a caveat ensures that the appellant’s rights are protected if the settlement is not finalized.

Order Pronounced in Open Court: 4th January 2023

Accountant Member: Shri Shamim Yahya
Judicial Member: Shri Anubhav Sharma

Assistant Registrar: ITAT, New Delhi

Virender Kumar vs ITO, Ward-4(1), New Delhi: Appeal Dismissed under Vivad Se Vishwas Scheme