A B Alcobev Pvt Ltd vs. ITO Ward-1(1), New Delhi: Withdrawal of Tax Dispute – ITA 5780/DEL/2019

A B Alcobev Pvt Ltd vs. ITO Ward-1(1), New Delhi: Withdrawal of Tax Dispute – ITA 5780/DEL/2019

Case Number: ITA 5780/DEL/2019

Appellant: A B Alcobev Pvt Ltd, New Delhi

Respondent: ITO Ward-1(1), New Delhi

Assessment Year: 2015-16

Case Filed on: 2019-07-02

Order Type: Final Tribunal Order

Date of Order: 2021-03-04

Pronounced on: 2021-03-04

Introduction

This case pertains to the appeal filed by A B Alcobev Pvt Ltd against the Income Tax Officer, Ward-1(1), New Delhi, for the assessment year 2015-16. The company contested the tax arrears assessed by the ITO but later opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020, resulting in the withdrawal of the appeal.

Background

A B Alcobev Pvt Ltd, a company based in New Delhi, filed its return of income for the assessment year 2015-16. During the assessment proceedings, discrepancies were noted, leading to tax arrears. The company challenged the assessment and filed an appeal with the Income Tax Appellate Tribunal (ITAT).

The case was heard before the Delhi Bench ‘SMC-1’ of the ITAT, presided over by Shri R.K. Panda, Accountant Member, and Shri Kuldip Singh, Judicial Member.

Grounds of Appeal

The primary grounds of appeal were based on the discrepancies noted by the ITO in the tax assessment of A B Alcobev Pvt Ltd. The company sought to contest the tax arrears assessed for the year 2015-16.

Vivad Se Vishwas Scheme, 2020

Before the appeal could be decided, A B Alcobev Pvt Ltd decided to opt for the Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the Government of India to resolve pending tax disputes amicably. Under this scheme, taxpayers could settle their disputes by paying a specified amount, thereby avoiding lengthy litigation.

On 3rd March 2021, the Director of A B Alcobev Pvt Ltd submitted a letter requesting the withdrawal of the appeal, stating that the company had opted to settle the dispute under the Vivad Se Vishwas Scheme. A certificate to this effect under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also filed.

Tribunal’s Decision

During the virtual hearing held on 4th March 2021, the request for withdrawal was presented. The learned Senior DR had no objection to the withdrawal. After considering the request, the Tribunal accepted the withdrawal of the appeal.

The Tribunal’s order stated:

“This appeal by the assessee for the assessment year 2015-16 is directed against the Order of Learned CIT(A)-I, New Delhi. The assessee’s Director vide letter dated 03.03.2021 has requested for withdrawal of the appeal filed by the assessee and stated that the assessee has opted to settle the dispute relating to the tax arrears for the assessment year under consideration under the Vivad Se Vishwas Scheme, 2020. A certificate to this effect under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020 has also been filed. Learned Senior DR has no objection. In view of the above, we accept the request of the assessee for withdrawal of the aforesaid appeal. In the result, the appeal of the assessee is dismissed as withdrawn.”

Conclusion

The appeal filed by A B Alcobev Pvt Ltd against the ITO Ward-1(1), New Delhi, was dismissed as withdrawn following the company’s decision to settle the tax dispute under the Vivad Se Vishwas Scheme, 2020. This case underscores the effectiveness of the scheme in resolving tax disputes efficiently.

Order Pronounced

The order was pronounced in the open court on 4th March 2021.

Members:

• R.K. PANDA, ACCOUNTANT MEMBER
• KULDIP SINGH, JUDICIAL MEMBER

By Order

Assistant Registrar, ITAT, New Delhi.

A B Alcobev Pvt Ltd vs. ITO Ward-1(1), New Delhi: Withdrawal of Tax Dispute – ITA 5780/DEL/2019