In the case ITA No. 5587/DEL/2019, the appellant Additional Commissioner of Income Tax (ACIT), Circle-14(1), New Delhi, challenged the tax assessment made for Kanti Bijlee Utpadan Nigam Ltd., New Delhi, for the assessment year 2014-15. The case was filed on 26th June 2019, and the final tribunal order was pronounced on 7th September 2022.
The appeal concerned the tax assessment for the financial year 2014-15. Kanti Bijlee Utpadan Nigam Ltd. opted to settle the dispute relating to the tax arrears for the assessment year under the Vivad Se Vishwas Scheme, 2020.
The appellant filed the appeal against the order of the CIT(A)-5, New Delhi, dated 28.03.2019. The primary contention was regarding the tax arrears and the penalty imposed by the Assessing Officer (AO).
The Direct Tax Vivad Se Vishwas Act, 2020, introduced a scheme for settling disputes related to tax arrears. Under this scheme, taxpayers can settle their disputes by paying a specified percentage of the disputed tax and obtain immunity from penalty and interest.
On 7th September 2022, the counsel for Kanti Bijlee Utpadan Nigam 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 under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, was also filed to confirm the settlement.
The tribunal, consisting of Accountant Member Dr. B. R. R. Kumar and Judicial Member Shri C. N. Prasad, considered the request for withdrawal of the appeal. The Senior DR had no objection to the withdrawal request.
The tribunal accepted the request for withdrawal of the appeal. The decision was based on the appellant’s settlement under the Vivad Se Vishwas Scheme and the absence of any objection from the Senior DR.
The tribunal concluded that the appeal filed by ACIT, Circle-14(1), New Delhi, against Kanti Bijlee Utpadan Nigam Ltd. for the assessment year 2014-15 should be dismissed as withdrawn. This decision was announced on 7th September 2022, during a virtual hearing in the presence of both parties.
This case highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for this scheme, Kanti Bijlee Utpadan Nigam Ltd. was able to settle its tax arrears and avoid prolonged litigation, penalties, and interest. The scheme provides a pragmatic solution for taxpayers seeking to resolve their tax disputes efficiently.
The final judgment in ITA No. 5587/DEL/2019 was pronounced by the Income Tax Appellate Tribunal, Delhi Bench ‘H’, New Delhi, on 7th September 2022. The tribunal’s order stated that the appeal by ACIT, Circle-14(1), New Delhi, was dismissed as withdrawn, in light of the settlement under the Vivad Se Vishwas Scheme.
Members of the Tribunal:
Judicial Member: Shri C. N. Prasad
Accountant Member: Dr. B. R. R. Kumar
ACIT vs Kanti Bijlee Utpadan Nigam Ltd: Settlement Under Vivad Se Vishwas Scheme for AY 2014-15
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