Babu Lal, Faridabad vs. ITO Ward-1(2), Faridabad: Case Filed for 2010-11 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme

Babu Lal, Faridabad vs. ITO Ward-1(2), Faridabad: Case Filed for 2010-11 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme

Case Number: ITA 5994/DEL/2019

Appellant: Babu Lal, Faridabad

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

Assessment Year: 2010-11

Case Filed On: 11th July 2019

Order Type: Final Tribunal Order

Date of Order: 25th February 2021

Pronounced On: 25th February 2021

Background of the Case

The appellant, Babu Lal, a resident of Faridabad and proprietor of M/s Jai Shirdi Sai Traders, filed an appeal against the assessment order for the assessment year 2010-11. The case was taken to the Income Tax Appellate Tribunal (ITAT) after Babu Lal challenged the order passed by the Commissioner of Income Tax (Appeals), New Delhi, dated 26th September 2018.

The primary issue raised in this case involved a dispute related to the assessment made by the Income Tax Officer (ITO), Ward-1(2), Faridabad. The details of the exact nature of the dispute have not been disclosed; however, it was likely centered around the tax liabilities assessed for the relevant year.

Proceedings in the Tribunal

The appeal was heard virtually by the Delhi Bench ‘C’ of the Income Tax Appellate Tribunal, presided over by Shri R.K. Panda, Accountant Member, and Shri K.N. Chary, Judicial Member. During the virtual hearing on 25th February 2021, none appeared on behalf of the assessee, Babu Lal. However, a letter dated 18th February 2021, was received by the Tribunal, in which the appellant requested to withdraw the appeal.

The reason for this withdrawal was that the appellant had opted to settle the tax dispute under the Vivad Se Vishwas Scheme, 2020. Under this scheme, taxpayers could resolve their tax disputes by paying the disputed tax amount, and in return, the government would waive off the penalties and interest. The appellant also provided a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming that he had settled the tax arrears for the assessment year 2010-11.

Decision of the Tribunal

After considering the request made by the appellant and noting that the Senior Departmental Representative (DR) had no objection to the withdrawal, the Tribunal accepted the request to withdraw the appeal. The appeal was subsequently dismissed as withdrawn.

The decision to dismiss the appeal was announced on the same day, i.e., 25th February 2021, at the conclusion of the virtual hearing. The dismissal of the appeal marked the end of the dispute between Babu Lal and the Income Tax Department for the assessment year 2010-11.

Conclusion

This case highlights the utility of the Vivad Se Vishwas Scheme in resolving long-standing tax disputes. By opting for the scheme, Babu Lal was able to settle his tax arrears without further litigation, benefiting both the taxpayer and the tax authorities by reducing the burden of pending disputes. The Tribunal’s swift acceptance of the withdrawal request reflects the effectiveness of the scheme in providing a mechanism for dispute resolution.

This case sets a precedent for other taxpayers with pending disputes to consider similar resolution mechanisms under government schemes, thereby reducing the time and resources spent on prolonged litigation.

The final decision, as pronounced by the Tribunal on 25th February 2021, serves as a reminder of the importance of utilizing available legal avenues to resolve disputes in a timely and efficient manner.

Order Pronounced By: Shri R.K. Panda, Accountant Member and Shri K.N. Chary, Judicial Member

Final Order: Appeal Dismissed

Babu Lal, Faridabad vs. ITO Ward-1(2), Faridabad: Case Filed for 2010-11 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme