Date: March 10, 2021
Location: ITAT, New Delhi Bench ‘SMC-1’
Judges: Shri R. K. Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member
Arian Infotech Pvt Ltd, a private limited company based in New Delhi, found itself embroiled in a tax dispute with the Deputy Commissioner of Income Tax (DCIT), Circle 3(1), New Delhi, concerning the assessment year 2008-09. The primary issue revolved around the order dated December 20, 2018, passed by the CIT(A)-1, New Delhi, which was subsequently challenged by the appellant company.
In a significant development, Arian Infotech Pvt Ltd opted to resolve the pending tax dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. This decision was formalized through an application dated March 10, 2021, wherein the company submitted Declaration Form No. 1 & 2 and awaited Form No. 3.
The Tribunal, taking into account the company’s decision to settle under the scheme, decided to dismiss the appeal as withdrawn. However, it was noted that should the dispute not be resolved under the scheme, the appellant would be at liberty to approach the Tribunal for the reinstatement of the appeal.
The case highlights the effectiveness of the Vivad Se Vishwas Scheme as a mechanism for resolving long-standing tax disputes. This resolution approach not only provides a pathway for clearing the backlog of cases but also offers a win-win scenario for both the taxpayer and the revenue department.
For businesses, the scheme presents an opportunity to settle disputes without further litigation, thus saving on time and resources that would otherwise be spent navigating the complexities of tax litigation.
The dismissal of Arian Infotech Pvt Ltd’s appeal by the ITAT marks a significant step towards the resolution of tax disputes through alternative dispute resolution mechanisms under Indian tax law. As this and similar cases progress, they set a precedent for other entities facing analogous issues, encouraging them to consider such schemes for amicable dispute resolution.
Arian Infotech Pvt Ltd’s Resolution of Tax Dispute Through Vivad Se Vishwas Scheme, 2019
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform