Ankush Bansal (HUF) vs ITO, Ward-51(2) – Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2015-16

Case Overview: Ankush Bansal (HUF) vs ITO, Ward-51(2), Assessment Year 2015-16

This case involves Ankush Bansal (HUF), a Hindu Undivided Family based in New Delhi, who filed an appeal against the order of the Commissioner of Income Tax (Appeals)-17, New Delhi, for the assessment year 2015-16. The appeal was later withdrawn as the appellant opted to settle the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020.

Background

In the assessment year 2015-16, Ankush Bansal (HUF) faced scrutiny by the Income Tax Department, which resulted in certain additions and disallowances to their income. Dissatisfied with the assessment order, the appellant filed an appeal with the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) upheld the findings of the Assessing Officer (AO), leading the appellant to further appeal to the Income Tax Appellate Tribunal (ITAT).

However, during the pendency of the appeal before the ITAT, the appellant decided to resolve the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. This scheme provided a platform for taxpayers to settle their tax disputes with the Income Tax Department by paying a specified percentage of the disputed tax amount.

Direct Tax Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme, introduced by the Government of India, was aimed at reducing litigation and providing a one-time opportunity for taxpayers to settle disputes by paying a reduced tax amount. The scheme allowed taxpayers to avoid prolonged litigation and clear their tax liabilities efficiently.

Proceedings and Withdrawal of Appeal

During the virtual hearing before the ITAT, no one appeared on behalf of Ankush Bansal (HUF). The appellant had submitted a letter requesting the withdrawal of the appeal, stating that they had opted for the Vivad Se Vishwas Scheme to settle the dispute. The appellant also submitted a certificate issued under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming the settlement of the tax arrears.

The Senior Departmental Representative (DR) present at the hearing raised no objections to the withdrawal of the appeal, acknowledging that the appellant had successfully settled the dispute through the scheme.

Tribunal’s Decision

The Income Tax Appellate Tribunal (ITAT), after considering the submissions and the certificate under the Vivad Se Vishwas Scheme, accepted the appellant’s request for withdrawal. The Tribunal dismissed the appeal as withdrawn. The final order was pronounced on 16th July 2021.

Conclusion

This case demonstrates the efficacy of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for the scheme, Ankush Bansal (HUF) was able to settle the pending litigation with the Income Tax Department efficiently, avoiding further legal proceedings and potential penalties.

The Vivad Se Vishwas Scheme has played a crucial role in reducing the backlog of cases in the Income Tax Appellate Tribunal and other judicial forums by encouraging taxpayers to settle disputes amicably. This case highlights the importance of alternative dispute resolution mechanisms in tax administration and the benefits they offer to both taxpayers and the government.

In conclusion, the withdrawal of the appeal under the Vivad Se Vishwas Scheme allowed Ankush Bansal (HUF) to achieve a swift resolution to their tax dispute for the assessment year 2015-16, demonstrating the value of such schemes in fostering tax compliance and reducing litigation.

Ankush Bansal (HUF) vs ITO, Ward-51(2) – Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2015-16