The case ITA No. 1624/DEL/2020 involved Cryoviva Biotech Private Limited, a firm based in New Delhi, which faced tax disputes with the Assistant Commissioner of Income Tax (ACIT), Circle-6(2), New Delhi, for the assessment year 2017-18. This analysis provides an overview of the case proceedings and the implications of opting for the Vivad Se Vishwas Scheme.
The dispute arose from the assessment order dated 11.08.2020 by the CIT(A)-2, New Delhi. Cryoviva Biotech, facing a potentially prolonged litigation process, chose to settle the dispute under the Vivad Se Vishwas Scheme, 2020, introduced by the Indian government to reduce pending income tax litigation and facilitate the settlement of disputed tax amounts.
During the tribunal hearing on August 11, 2022, represented by Shri Divyansh Jain, Advocate, Cryoviva Biotech sought to withdraw their appeal filed against the CIT(A)’s order, indicating their preference for settlement under the Vivad Se Vishwas Scheme. The absence of objection from the Senior Departmental Representative (Sr. DR) led to the acceptance of the withdrawal request, albeit with a caveat allowing the reinstatement of the appeal if the settlement could not be finalized under the scheme.
The decision to opt for the Vivad Se Vishwas Scheme underscores the benefits of alternative dispute resolutions in tax matters, which can save time and resources for both taxpayers and the judiciary. This case highlights the practical application of the scheme and its impact on simplifying tax disputes. The caveat provided by the tribunal ensures a safety net for the taxpayer, allowing for the restoration of the appeal if the settlement does not proceed as planned.
This case serves as a significant reference for other corporations and tax professionals who are considering the Vivad Se Vishwas Scheme as a viable option for resolving tax disputes. It illustrates the procedural aspects and strategic decisions involved in navigating complex tax litigation.
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