Abhay Jain vs. ITO Ward-23(3), New Delhi: Case Filed for 2014-15 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme

Abhay Jain vs. ITO Ward-23(3), New Delhi: Case Filed for 2014-15 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme

Case Number: ITA 6008/DEL/2019

Appellant: Abhay Jain, Delhi

Respondent: Income Tax Officer, Ward-23(3), New Delhi

Assessment Year: 2014-15

Case Filed On: 12th July 2019

Order Type: Final Tribunal Order

Date of Order: 16th November 2020

Pronounced On: 16th November 2020

Background of the Case

This case involves an appeal filed by Abhay Jain, a resident of Delhi, against the Income Tax Officer, Ward-23(3), New Delhi, for the assessment year 2014-15. The appeal was filed on 12th July 2019, challenging the decisions made by the Commissioner of Income Tax (Appeals) [CIT(A)] on various grounds. However, during the course of the appeal, the appellant opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020.

The Vivad Se Vishwas Scheme was introduced by the Government of India to resolve pending direct tax disputes by offering taxpayers an opportunity to settle their tax cases by paying the disputed tax amount without any additional interest or penalty. This scheme was aimed at reducing the litigation burden on taxpayers and tax authorities, and to expedite the resolution of tax disputes.

Proceedings in the Tribunal

The appeal was heard by the Delhi Bench ‘A’ of the Income Tax Appellate Tribunal via video conferencing. The bench was presided over by Shri G.S. Pannu, Vice President, and Shri Amit Shukla, Judicial Member. The hearing took place on 16th November 2020, with the final order pronounced on the same day.

During the hearing, the appellant was represented by Ms. Umang Luthra, Advocate, while the Department’s Representative (DR), Shri M. Baranwal, argued on behalf of the Revenue. The appellant’s counsel submitted a letter dated 1st September 2020, requesting the withdrawal of the appeal on the grounds that the appellant had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020.

The Dispute and Its Resolution

The original dispute in this case revolved around certain tax arrears that the Income Tax Officer had assessed for the assessment year 2014-15. Abhay Jain, disagreeing with the assessment, had initially appealed to the CIT(A) and subsequently to the ITAT. However, with the introduction of the Vivad Se Vishwas Scheme, the appellant saw an opportunity to resolve the dispute without further litigation.

Under the Vivad Se Vishwas Scheme, taxpayers could settle their disputes by paying only the disputed tax amount, with full waiver of interest and penalties. This scheme was especially attractive to those who wished to avoid prolonged litigation and potential financial burdens that could arise from continuing legal proceedings.

In this case, the appellant, Abhay Jain, chose to take advantage of the scheme, which led to the withdrawal of the appeal. The Department’s Representative raised no objection to the withdrawal, allowing the process to proceed smoothly.

Tribunal’s Analysis and Decision

The Tribunal took into consideration the request made by the appellant’s counsel for withdrawal of the appeal under the Vivad Se Vishwas Scheme, 2020. The Tribunal noted that the request was made voluntarily by the appellant and that the Department had no objections. In light of these factors, the Tribunal decided to allow the withdrawal of the appeal.

The Tribunal emphasized that the withdrawal of the appeal was in line with the objectives of the Vivad Se Vishwas Scheme, which aimed to reduce pending litigation and offer taxpayers a fair chance to resolve their tax disputes amicably. The Tribunal also noted that the scheme provided a win-win situation for both the taxpayers and the tax authorities by facilitating a quicker resolution of disputes.

As a result, the Tribunal dismissed the appeal as withdrawn, bringing the case to a close. The decision was announced at the conclusion of the virtual hearing, and the final order was pronounced on 16th November 2020.

Conclusion

The case of Abhay Jain vs. ITO Ward-23(3), New Delhi, serves as a significant example of how the Vivad Se Vishwas Scheme, 2020, has been instrumental in resolving tax disputes efficiently. By opting to settle the dispute under the scheme, the appellant was able to avoid prolonged litigation and achieve a resolution without the additional burden of interest and penalties.

This case highlights the practical benefits of government initiatives like the Vivad Se Vishwas Scheme, which aim to reduce litigation and foster a more collaborative approach to tax dispute resolution. For taxpayers, the scheme represents an opportunity to settle disputes on favorable terms, while for the tax authorities, it helps in clearing the backlog of cases and focusing resources on more significant issues.

The Tribunal’s decision to dismiss the appeal as withdrawn underscores the importance of such schemes in the broader context of tax administration. The case also serves as a reminder to taxpayers and practitioners of the value of staying informed about available options for dispute resolution, particularly those introduced by the government to streamline processes and reduce legal burdens.

The final order, pronounced on 16th November 2020 by Shri G.S. Pannu, Vice President, and Shri Amit Shukla, Judicial Member, reflects the Tribunal’s commitment to supporting the objectives of the Vivad Se Vishwas Scheme and its role in facilitating a more efficient tax dispute resolution process.

Order Pronounced By: Shri G.S. Pannu, Vice President, and Shri Amit Shukla, Judicial Member

Final Order: Appeal Dismissed as Withdrawn Under Vivad Se Vishwas Scheme

Abhay Jain vs. ITO Ward-23(3), New Delhi: Case Filed for 2014-15 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme