Withdrawal of Appeal Under Vivad Se Vishwas Scheme – BBC.Com Ltd vs DCIT Circle-1(1)(2), International Taxation, New Delhi

Case Summary: BBC.Com Ltd vs DCIT Circle-1(1)(2), International Taxation, New Delhi

Case Number: ITA 6053/DEL/2019
Appellant: BBC.Com Ltd., New Delhi
Respondent: Deputy Commissioner of Income Tax (DCIT), Circle-1(1)(2), International Taxation, New Delhi
Assessment Year: 2016-17
Case Filed On: 15th July 2019
Order Type: Final Tribunal Order
Date of Order: 12th January 2021
Pronounced On: 12th January 2021

Introduction

The case of BBC.Com Ltd vs DCIT Circle-1(1)(2), International Taxation, New Delhi, pertains to an appeal filed by the appellant challenging the income tax assessment for the assessment year 2016-17. The appeal was initially filed to dispute the assessment made by the Deputy Commissioner of Income Tax (DCIT), Circle-1(1)(2), International Taxation, New Delhi. However, the appeal was later withdrawn by the appellant after opting for the Vivad Se Vishwas Scheme, 2020.

Background of the Case

BBC.Com Ltd., a company based in New Delhi and part of the BBC Global News network, had its income assessed for the assessment year 2016-17 by the DCIT, Circle-1(1)(2), International Taxation. The company contested the assessment, arguing that it did not accurately reflect its tax liabilities under the Income Tax Act, 1961. The dispute primarily centered around the tax treatment of the company’s income, including possible discrepancies in the application of the Double Taxation Avoidance Agreement (DTAA) between India and the UK.

The company, represented by its legal and tax consultants, initially sought relief from the Income Tax Appellate Tribunal (ITAT) by filing an appeal. The appeal was registered as ITA No. 6053/DEL/2019 and was to be heard by the Delhi Bench ‘A’ of the ITAT.

Vivad Se Vishwas Scheme

In 2020, the Government of India introduced the Vivad Se Vishwas Scheme under the Direct Tax Vivad Se Vishwas Act, 2020. The scheme was aimed at resolving long-pending tax disputes by offering taxpayers the opportunity to settle their cases by paying a specified amount, thus avoiding further litigation. BBC.Com Ltd. decided to take advantage of this scheme to settle its tax dispute for the assessment year 2016-17.

The company applied for the scheme and received a certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020. This certificate indicated that the dispute had been settled as per the provisions of the scheme, and the company was therefore entitled to withdraw its appeal from the ITAT.

Proceedings Before the ITAT

The appeal was scheduled for a virtual hearing before the Delhi Bench ‘A’ of the ITAT, which included Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member. The hearing took place on 12th January 2021. However, none appeared on behalf of BBC.Com Ltd. during the hearing, as the company had already opted to settle the dispute under the Vivad Se Vishwas Scheme.

In a letter dated 7th January 2021, the company requested the withdrawal of the appeal, citing the settlement of the tax arrears under the Vivad Se Vishwas Scheme. The letter was submitted to the Tribunal, along with the certificate obtained under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020.

Tribunal’s Decision

The Tribunal reviewed the letter and the certificate submitted by BBC.Com Ltd., confirming that the company had opted for the Vivad Se Vishwas Scheme and that the tax dispute had been settled under the scheme. Shri Prakash Dubey, Senior Departmental Representative (DR), who represented the respondent, did not object to the withdrawal of the appeal.

In light of the circumstances, the Tribunal accepted the request for withdrawal and dismissed the appeal as withdrawn. The Tribunal’s decision was announced immediately following the virtual hearing on 12th January 2021.

Conclusion

The appeal filed by BBC.Com Ltd. against the income tax assessment for the assessment year 2016-17 was dismissed by the ITAT following the company’s request to withdraw the appeal. The withdrawal was made after the company opted to settle the tax dispute under the Vivad Se Vishwas Scheme, 2020, which allowed it to resolve the dispute without further litigation.

This case highlights the utility of the Vivad Se Vishwas Scheme as an effective mechanism for resolving tax disputes. By providing a clear path for settlement, the scheme has enabled taxpayers like BBC.Com Ltd. to avoid prolonged legal battles and reach a resolution in a timely manner. The success of the scheme also underscores the importance of alternative dispute resolution mechanisms in the Indian tax system.

Order Pronounced in Open Court: 12th January 2021

Judicial Members: Shri G.S. Pannu and Shri Sudhanshu Srivastava

Assistant Registrar: ITAT, New Delhi

Withdrawal of Appeal Under Vivad Se Vishwas Scheme – BBC.Com Ltd vs DCIT Circle-1(1)(2), International Taxation, New Delhi