Aarshabh Ferro Alloys Pvt. Ltd. vs. ITO Ward-1(2), New Delhi: Case Filed for 2015-16 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme

Aarshabh Ferro Alloys Pvt. Ltd. vs. ITO Ward-1(2), New Delhi: Case Filed for 2015-16 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme

Case Number: ITA 6001/DEL/2019

Appellant: Aarshabh Ferro Alloys Pvt. Ltd., Delhi

Respondent: Income Tax Officer, Ward-1(2), New Delhi

Assessment Year: 2015-16

Case Filed On: 12th July 2019

Order Type: Final Tribunal Order

Date of Order: 28th January 2021

Pronounced On: 28th January 2021

Background of the Case

Aarshabh Ferro Alloys Pvt. Ltd., a company based in Delhi, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)-27, New Delhi, on 11th March 2019. The case pertains to the assessment year 2015-16. The appeal was lodged before the Income Tax Appellate Tribunal (ITAT) challenging the assessment made by the Income Tax Officer (ITO), Ward-1(2), New Delhi.

The primary issue in this case arose from the tax assessment of Aarshabh Ferro Alloys Pvt. Ltd. for the financial year 2015-16. The appellant sought relief from the tax liabilities imposed by the ITO, arguing against the assessment order. While the details of the dispute are not extensively elaborated in the Tribunal’s order, it is clear that the appellant was dissatisfied with the tax assessment and chose to contest it before the Tribunal.

Proceedings in the Tribunal

The appeal was heard by the Delhi Bench ‘SMC-2’ of the Income Tax Appellate Tribunal via video conferencing, reflecting the adaptation of judicial processes during the pandemic. The bench was presided over by Shri N. K. Billaiya, Accountant Member. The hearing took place on 28th January 2021.

During the hearing, the appellant was represented by Advocate Akarsh Garg, while the Revenue was represented by Shri Mahesh Kumar, Senior Departmental Representative (DR). At the outset of the hearing, the counsel for the appellant informed the Tribunal that Aarshabh Ferro Alloys Pvt. Ltd. had decided to withdraw the appeal. The reason for the withdrawal was that the appellant had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020.

Understanding the Vivad Se Vishwas Scheme

The Vivad Se Vishwas Scheme, introduced by the Government of India in 2020, aimed to resolve pending tax disputes by offering taxpayers an opportunity to pay the disputed tax amount and receive a waiver on interest and penalties. This scheme was designed to alleviate the burden of litigation for both taxpayers and the Income Tax Department, promoting quicker resolutions to long-standing tax disputes.

In this case, Aarshabh Ferro Alloys Pvt. Ltd. chose to take advantage of the Vivad Se Vishwas Scheme to resolve its tax dispute for the assessment year 2015-16. By opting for the scheme, the company aimed to settle the issue without further litigation, thereby benefiting from the relief provided under the scheme.

Tribunal’s Decision

The Tribunal, upon considering the appellant’s request for withdrawal, accepted the request and dismissed the appeal as withdrawn. The Tribunal also granted the appellant the liberty to approach the Tribunal for the revival of the appeal if, for some technical reason, the dispute could not be settled under the Vivad Se Vishwas Scheme. This provision ensured that the appellant retained the right to revive the appeal if the settlement under the scheme did not materialize as expected.

The Tribunal’s decision was pronounced in the open court on 28th January 2021, in the presence of both representatives. This decision underscores the Tribunal’s role in facilitating the resolution of tax disputes under government schemes and highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving such disputes without the need for prolonged litigation.

Conclusion

The case of Aarshabh Ferro Alloys Pvt. Ltd. vs. ITO Ward-1(2), New Delhi, serves as a testament to the practical benefits of the Vivad Se Vishwas Scheme in resolving tax disputes. By choosing to withdraw the appeal and settle the dispute under the scheme, Aarshabh Ferro Alloys Pvt. Ltd. was able to resolve its tax liabilities for the assessment year 2015-16 without further contestation.

This case also highlights the Tribunal’s role in supporting such settlements, providing taxpayers with the option to withdraw their appeals and resolve disputes through government-led initiatives. The Tribunal’s provision for the potential revival of the appeal, if necessary, reflects a balanced approach that ensures taxpayers are not left without options if the settlement process encounters difficulties.

For other taxpayers and legal professionals, this case exemplifies the advantages of utilizing schemes like Vivad Se Vishwas, which offer a streamlined process for dispute resolution. The final decision, pronounced on 28th January 2021, marks the successful resolution of the dispute for Aarshabh Ferro Alloys Pvt. Ltd., demonstrating how government schemes can be effectively leveraged to resolve tax disputes.

The order, as pronounced by Shri N. K. Billaiya, Accountant Member, highlights the Tribunal’s commitment to ensuring fair and efficient resolution of tax disputes while promoting the use of alternative mechanisms like the Vivad Se Vishwas Scheme.

Order Pronounced By: Shri N. K. Billaiya, Accountant Member

Final Order: Appeal Dismissed as Withdrawn

Aarshabh Ferro Alloys Pvt. Ltd. vs. ITO Ward-1(2), New Delhi: Case Filed for 2015-16 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme