Anekant Developers Pvt Ltd Resolves Tax Dispute under Vivad Se Vishwas Scheme for AY 2011-12

Case Overview: Anekant Developers Pvt Ltd vs. ITO Ward-2(4), New Delhi – Assessment Year 2011-12

The case of Anekant Developers Pvt Ltd vs. ITO Ward-2(4), New Delhi for the assessment year 2011-12 was presented before the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘A’. The appeal was heard via video conferencing on August 28, 2020, due to the ongoing COVID-19 pandemic. The bench comprised Hon’ble Vice President Shri G.S. Pannu and Judicial Member Shri Sudhanshu Srivastava.

Background of the Case

Anekant Developers Pvt Ltd, a company based in New Delhi, filed its income tax return for the assessment year 2011-12. The Income Tax Officer (ITO) Ward-2(4), New Delhi, assessed the company’s return and raised certain tax demands. The company, disagreeing with the assessment, filed an appeal with the ITAT. However, during the pendency of the appeal, the Government of India introduced the Direct Tax Vivad Se Vishwas Act, 2020, to resolve tax disputes amicably and reduce litigation.

Under the Vivad Se Vishwas scheme, taxpayers were given an opportunity to settle their disputes by paying a certain percentage of the disputed tax amount. This scheme aimed to reduce the burden of ongoing tax litigation and provide a quick resolution mechanism.

Filing Under the Vivad Se Vishwas Scheme

Anekant Developers Pvt Ltd opted to settle the ongoing tax dispute for the assessment year 2011-12 under the Vivad Se Vishwas scheme. The company filed the necessary declaration in accordance with Section 4 of the Direct Tax Vivad Se Vishwas Act, 2020. This declaration indicated the company’s intention to resolve the tax arrears related to the disputed assessment year.

Tribunal’s Decision

Upon reviewing the declaration filed by the appellant, the ITAT acknowledged the company’s decision to resolve the dispute under the Vivad Se Vishwas scheme. The tribunal, therefore, consigned the appeal to records and treated it as dismissed. The tribunal’s order was delivered on August 28, 2020, marking the official dismissal of the appeal.

Caveat for Potential Reinstatement

The tribunal’s dismissal of the appeal was accompanied by a specific caveat. The order stated that if the dispute related to the tax arrears for the assessment year 2011-12 was not ultimately resolved under the Vivad Se Vishwas scheme, Anekant Developers Pvt Ltd would have the liberty to approach the tribunal to reinstitute the appeal. The tribunal assured that any such application for reinstatement would be considered appropriately as per law. Notably, the respondent, ITO Ward-2(4), New Delhi, had no objection to this caveat.

Conclusion

The decision of Anekant Developers Pvt Ltd to opt for the Vivad Se Vishwas scheme reflects a strategic move to resolve the tax dispute without further litigation. The scheme provided a structured resolution process, allowing the company to settle the tax arrears for the assessment year 2011-12 efficiently.

The ITAT’s order underscored the effectiveness of the Vivad Se Vishwas scheme in reducing the backlog of tax litigation cases. By offering taxpayers the opportunity to settle disputes, the scheme aimed to promote a culture of compliance and timely resolution of tax matters.

The caveat included in the tribunal’s order ensures that the company retains the right to pursue the appeal if the dispute is not resolved under the scheme. This safeguard reflects the tribunal’s commitment to ensuring that the appellant’s rights are preserved, even as it encourages the resolution of disputes through alternative mechanisms like the Vivad Se Vishwas scheme.

Overall, the case of Anekant Developers Pvt Ltd vs. ITO Ward-2(4), New Delhi demonstrates the tribunal’s proactive approach in supporting government initiatives designed to reduce litigation and streamline the tax resolution process. As more companies opt for such schemes, the burden on appellate forums is expected to decrease, paving the way for a more efficient tax administration system.

Anekant Developers Pvt Ltd Resolves Tax Dispute under Vivad Se Vishwas Scheme for AY 2011-12