Ahinsa Builders Pvt Ltd vs Addl. CIT – Settlement Under Vivad Se Vishwas Scheme for AY 2016-17

Ahinsa Builders Pvt Ltd vs Addl. CIT – Settlement Under Vivad Se Vishwas Scheme for AY 2016-17

Case Number: ITA 6530/DEL/2019

Appellant: Ahinsa Builders Pvt Ltd, New Delhi

Respondent: Addl. CIT, Special Range-1, New Delhi

Assessment Year: 2016-17

Order Type: Final Tribunal Order

Date of Order: 2020-12-23

Pronounced on: 2020-12-23

Background of the Case

Ahinsa Builders Pvt Ltd, a company based in New Delhi, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)-32, New Delhi, for the assessment year 2016-17. The case was brought before the Income Tax Appellate Tribunal (ITAT), Delhi Bench, challenging the decision of the lower authorities regarding the assessment made for the relevant year.

However, during the proceedings, the appellant expressed interest in resolving the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the Government of India to reduce litigation and provide a quick resolution to tax disputes.

Appellant’s Request for Withdrawal

On December 14, 2020, the counsel for the appellant, Ahinsa Builders Pvt Ltd, submitted a formal request to the Tribunal, seeking permission to withdraw the appeal. The request was made through a letter sent via email, where it was stated that the appellant had opted to settle the tax dispute under the Vivad Se Vishwas Scheme.

The appellant provided a certificate issued under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, as evidence of their decision to settle the tax arrears for the assessment year 2016-17. The settlement under the scheme indicated the appellant’s willingness to resolve the dispute without further litigation.

Response from the Revenue Department

The Senior Departmental Representative (DR) representing the Revenue Department raised no objections to the appellant’s request for withdrawal. The DR acknowledged the appellant’s choice to settle the dispute under the Vivad Se Vishwas Scheme and did not contest the withdrawal of the appeal.

Tribunal’s Decision

After considering the appellant’s request and the lack of objections from the Revenue Department, the Tribunal decided to accept the withdrawal of the appeal. The bench, comprising Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member, concluded that the appeal should be dismissed as withdrawn, given the circumstances presented.

The Tribunal announced its decision during a Virtual Hearing on December 23, 2020. The dismissal of the appeal was formally recorded in the presence of both parties, ensuring that the resolution was transparent and in accordance with legal procedures.

Conclusion

The case of Ahinsa Builders Pvt Ltd vs Addl. CIT for the assessment year 2016-17 highlights the effectiveness of the Vivad Se Vishwas Scheme in facilitating the resolution of tax disputes. By opting for the scheme, the appellant was able to settle the dispute efficiently, avoiding prolonged litigation.

This case also underscores the importance of alternative dispute resolution mechanisms in the Indian tax system. The Vivad Se Vishwas Scheme provided a viable option for taxpayers like Ahinsa Builders Pvt Ltd to address their tax-related issues amicably, leading to a quicker resolution and reducing the burden on the judicial system.

Ultimately, the dismissal of the appeal reflects the appellant’s commitment to resolving the matter through the settlement scheme, bringing closure to the dispute for the assessment year 2016-17.

Ahinsa Builders Pvt Ltd vs Addl. CIT – Settlement Under Vivad Se Vishwas Scheme for AY 2016-17