Azad Bansal vs ITO, Ward-1(1), Ghaziabad – Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2009-10

Case Overview: Azad Bansal vs ITO, Ward-1(1), Ghaziabad, Assessment Year 2009-10

This case involves Azad Bansal, a resident of Ghaziabad, who filed an appeal against the order of the Commissioner of Income Tax (Appeals), Ghaziabad, for the assessment year 2009-10. The appellant opted to resolve the tax dispute through the Direct Tax Vivad Se Vishwas Scheme, 2020, leading to the withdrawal of the appeal.

Background

Azad Bansal, the appellant, had filed his income tax return for the assessment year 2009-10. During the assessment process, the Assessing Officer (AO) made certain additions and disallowances, which the appellant contested by filing an appeal with the Commissioner of Income Tax (Appeals) [CIT(A)], Ghaziabad. The CIT(A) upheld the AO’s findings, prompting the appellant to file a further appeal with the Income Tax Appellate Tribunal (ITAT).

While the appeal was pending before the ITAT, the appellant decided to settle the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. This scheme, introduced by the government, aimed to reduce litigation by allowing taxpayers to settle their disputes with the Income Tax Department by paying a specified amount, depending on the nature and stage of the dispute.

Direct Tax Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme was a significant initiative by the Government of India, designed to provide a one-time opportunity for taxpayers to settle their pending tax disputes. By opting for this scheme, taxpayers could resolve disputes by paying a reduced tax liability, thereby avoiding prolonged litigation and the associated costs.

Proceedings and Withdrawal of Appeal

During the virtual hearing before the ITAT on 1st June 2021, the appellant’s representative, Shri Sunil Kumar Tyagi, Chartered Accountant, informed the Tribunal that the appellant had opted for the Vivad Se Vishwas Scheme. The appellant had already filed the necessary declaration (Form-1) and undertaking (Form-2) under the scheme, and the department had issued Form No. 3, confirming the resolution of the dispute.

The appellant requested the withdrawal of the appeal in light of the settlement under the Vivad Se Vishwas Scheme. The Tribunal, after considering the request, allowed the withdrawal of the appeal. However, the Tribunal included a caveat that if the dispute relating to the tax arrears for the assessment year 2009-10 was not ultimately resolved under the scheme, the appellant would have the liberty to approach the Tribunal to reinstitute the appeal. The Tribunal assured that such an application would be considered appropriately as per law.

Tribunal’s Decision

The ITAT accepted the request for withdrawal and dismissed the appeal as withdrawn. The order was pronounced in the open court on 1st June 2021, immediately after the conclusion of the hearing in the virtual mode.

Conclusion

This case highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for the scheme, Azad Bansal was able to settle the pending litigation 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 various judicial forums, including the Income Tax Appellate Tribunal. It has provided taxpayers with a practical solution to resolve their disputes, thereby promoting a more compliant and dispute-free tax environment.

In conclusion, the withdrawal of the appeal under the Vivad Se Vishwas Scheme allowed Azad Bansal to achieve a quick and effective resolution to the tax dispute for the assessment year 2009-10. This case underscores the importance of alternative dispute resolution mechanisms in tax administration and the benefits they offer to both taxpayers and the government.

Azad Bansal vs ITO, Ward-1(1), Ghaziabad – Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2009-10