Appeal Dismissal Under Vivad Se Vishwas Scheme: Tarun Maheshwari vs ACIT Central Circle-19, New Delhi [Assessment Year 2012-13]

Income Tax Appellate Tribunal Decision: Tarun Maheshwari vs ACIT Central Circle-19, New Delhi

Case Number: ITA 6517/DEL/2019

Appellant: Tarun Maheshwari, New Delhi

Respondent: ACIT Central Circle-19, New Delhi

Assessment Year: 2012-13

Order Type: Final Tribunal Order

Case Filed On: 2019-08-05

Date of Order: 2020-11-26

Date Pronounced: 2020-11-26

Presiding Members: Shri G.S. Pannu (Vice President) and Smt. Madhumita Roy (Judicial Member)

Background and Context

This case involves the appellant, Tarun Maheshwari, a resident of New Delhi, who filed an appeal against the assessment order passed by the ACIT Central Circle-19, New Delhi, for the Assessment Year 2012-13. The appellant challenged the order before the Income Tax Appellate Tribunal (ITAT) under case number ITA 6517/DEL/2019.

The appeal was heard and pronounced through video conferencing, given the restrictions in place due to the COVID-19 pandemic. The matter was taken up for hearing on 26th November 2020 by the Delhi Bench ‘A’ of the ITAT.

Settlement under Vivad Se Vishwas Scheme

During the proceedings, the learned counsel for the appellant informed the Tribunal that Tarun Maheshwari had opted to settle the tax arrears under the Vivad Se Vishwas Act, 2020. This scheme, introduced by the Indian government, allowed taxpayers to settle their disputed tax cases by paying the disputed tax amount and, in return, receive a waiver of interest and penalties.

The appellant’s counsel submitted a letter dated 24th November 2020, requesting the withdrawal of the appeal on the grounds that the dispute was being resolved under the Vivad Se Vishwas Scheme. A certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, was also submitted as evidence of this settlement.

Tribunal’s Decision

Considering the appellant’s request and the fact that the dispute was being resolved under the Vivad Se Vishwas Scheme, the ITAT decided to dismiss the appeal as withdrawn. The dismissal was recorded, and the case was consigned to the records.

However, the Tribunal included a caveat in its order. It stated that if, for any reason, the dispute relating to the tax arrears for the Assessment Year 2012-13 is not ultimately resolved under the Vivad Se Vishwas Act, the appellant would have the liberty to approach the Tribunal for the reinstitution of the appeal. The Tribunal assured that such an application, if made, would be considered appropriately as per the law.

The respondent, represented by the Senior Departmental Representative (DR), raised no objection to this caveat, allowing the Tribunal to proceed with dismissing the appeal.

Conclusion

The ITAT’s order concluded with the dismissal of the appeal, subject to the mentioned caveat. The decision was announced on 26th November 2020, following the virtual hearing.

This case highlights the application and effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for this scheme, Tarun Maheshwari chose to settle his tax dispute amicably, leading to the withdrawal of his appeal and the conclusion of the matter in a swift and efficient manner.

The case also underscores the Tribunal’s flexibility in allowing the reinstitution of the appeal if the settlement under the Vivad Se Vishwas Scheme does not materialize as expected. This approach ensures that the appellant’s rights are safeguarded while promoting the resolution of tax disputes under the scheme.

The Tribunal’s order was documented and distributed to the involved parties, including the appellant, respondent, and relevant tax authorities.

Appeal Dismissal Under Vivad Se Vishwas Scheme: Tarun Maheshwari vs ACIT Central Circle-19, New Delhi [Assessment Year 2012-13]