Addi. CIT Special Range-1 vs. ADM AGRO Industries: Appeal Dismissal under Vivad Se Vishwas Scheme for AY 2016-17

Addi. CIT Special Range-1 vs. ADM AGRO Industries: Appeal Dismissal under Vivad Se Vishwas Scheme for AY 2016-17

Case Number: ITA 6292/DEL/2019

Appellant: Additional Commissioner of Income Tax (Addi. CIT), Special Range-1, New Delhi

Respondent: ADM AGRO Industries Latur and Vizag Pvt. Ltd., New Delhi

Assessment Year: 2016-17

Order Type: Final Tribunal Order

Date of Order: March 25, 2021

Pronounced On: March 25, 2021

Case Filed On: July 26, 2019

Tribunal Bench: Delhi Bench A: New Delhi (Through Video Conferencing)

Judges: Shri G.S. Pannu (Vice President) and Shri Sudhanshu Srivastava (Judicial Member)

Background of the Case

The appellant, Additional Commissioner of Income Tax (Addi. CIT), Special Range-1, New Delhi, filed an appeal against ADM AGRO Industries Latur and Vizag Pvt. Ltd., New Delhi, for the assessment year 2016-17. The appeal was directed against the order passed by the Commissioner of Income Tax (Appeals)-32, New Delhi, on May 31, 2019. The case involved disputes related to the assessment of tax liabilities for the relevant assessment year, which the department believed were incorrectly assessed by the CIT(A).

Reason for Filing the Appeal

The appeal was initially filed by Addi. CIT Special Range-1 to contest the CIT(A)’s order, which provided relief to ADM AGRO Industries Latur and Vizag Pvt. Ltd. concerning the tax demands raised for the assessment year 2016-17. The department sought to challenge the reduction or dismissal of the tax liabilities, arguing that the CIT(A)’s decision did not fully consider the revenue’s perspective on the matter.

Settlement under the Vivad Se Vishwas Scheme, 2020

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme, 2020. This scheme aimed at reducing litigation and providing taxpayers with an opportunity to settle their disputes with the Income Tax Department. The scheme allowed taxpayers to resolve disputes by paying a percentage of the disputed tax amount, thereby receiving immunity from further litigation.

ADM AGRO Industries Latur and Vizag Pvt. Ltd. opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was filed by the respondent, confirming that the tax arrears related to the assessment year 2016-17 were settled under the scheme.

Dismissal of the Appeal

On March 25, 2021, during the virtual hearing of the case, the Authorized Representative (A.R.) of the respondent, Mrs. Ananya Kapoor, submitted a request for the dismissal of the appeal on behalf of ADM AGRO Industries Latur and Vizag Pvt. Ltd. The request was made following the successful settlement under the Vivad Se Vishwas Scheme. The appellant’s representative, Sh. M. Baranwal, Sr. DR, had no objection to the dismissal of the appeal.

Given the request for dismissal, the Income Tax Appellate Tribunal (ITAT) accepted the request and dismissed the appeal. The decision was pronounced at the conclusion of the virtual hearing on March 25, 2021, in the presence of both parties.

Final Order

The final order was delivered by Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member, who constituted the bench. The bench concluded that the appeal filed by Addi. CIT Special Range-1 for the assessment year 2016-17 was dismissed due to the settlement of the dispute under the Vivad Se Vishwas Scheme, 2020.

This decision marks the conclusion of the litigation process for the appellant, with the dismissal of the appeal and the resolution of the contested tax liabilities for the assessment year in question.

Conclusion

The case of Addi. CIT Special Range-1 vs. ADM AGRO Industries Latur and Vizag Pvt. Ltd. for the assessment year 2016-17 highlights the effectiveness of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes. By opting for this scheme, the respondent was able to settle the dispute without engaging in prolonged litigation. The dismissal of the appeal under the scheme underscores its role in reducing the burden on both the revenue and the judiciary.

The ITAT’s acceptance of the dismissal and conclusion of the appeal underscores the importance of such schemes in promoting a more efficient tax dispute resolution process. The success of the Vivad Se Vishwas Scheme, 2020, in this case, provides a positive precedent for other companies and taxpayers facing similar disputes.

By settling the dispute under the Vivad Se Vishwas Scheme, ADM AGRO Industries Latur and Vizag Pvt. Ltd. benefited from the government’s initiative to streamline tax dispute resolution, ensuring that the case was resolved quickly and with certainty. This outcome demonstrates the value of government schemes designed to encourage dispute resolution without the need for lengthy and expensive litigation.

Overall, the Vivad Se Vishwas Scheme’s implementation and its positive outcomes, as evidenced in this case, reinforce the government’s commitment to easing the tax compliance process and providing practical avenues for dispute resolution. The scheme’s success in this case not only resolved a significant tax dispute but also set a benchmark for other taxpayers seeking similar resolutions.

The dismissal of the appeal by Addi. CIT Special Range-1 under the Vivad Se Vishwas Scheme highlights the scheme’s effectiveness in achieving its goals and underscores its importance in the broader context of tax administration and compliance in India. The case serves as a reminder that such schemes can be a valuable tool for taxpayers and the revenue department seeking to resolve disputes efficiently and fairly.

As more taxpayers opt for similar schemes, the overall efficiency of the tax dispute resolution process is likely to improve, contributing to a more cooperative relationship between taxpayers and the tax authorities. This case sets a positive example for the business community and demonstrates how proactive measures can lead to favorable outcomes for both the taxpayer and the government.

Addi. CIT Special Range-1 vs. ADM AGRO Industries: Appeal Dismissal under Vivad Se Vishwas Scheme for AY 2016-17