Brillanto Promoters Pvt. Ltd. vs ACIT – Appeal Withdrawal under Vivad Se Vishwas Scheme – ITA No. 6269/DEL/2019 (Assessment Year 2014-15)

Case Analysis: Brillanto Promoters Pvt. Ltd. vs ACIT – ITA No. 6269/DEL/2019

Case Number: ITA 6269/DEL/2019

Appellant: Brillanto Promoters Pvt. Ltd., Delhi

Respondent: ACIT, Circle-5(1), New Delhi

Assessment Year: 2014-15

Order Type: Final Tribunal Order

Date of Order: 29th September 2021

Case Filed On: 24th July 2019

Bench: Shri R. K. Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member

Introduction

The case of Brillanto Promoters Pvt. Ltd. vs ACIT (ITA No. 6269/DEL/2019) pertains to the assessment year 2014-15. The appeal was initially filed by Brillanto Promoters Pvt. Ltd. challenging the assessment order passed by the Assistant Commissioner of Income Tax (ACIT), Circle-5(1), New Delhi. However, the appellant later opted to settle the dispute under the Vivad Se Vishwas Scheme 2020, leading to the withdrawal of the appeal. This analysis covers the background of the case, the reasons for filing the appeal, and the circumstances that led to its withdrawal.

Background of the Case

Brillanto Promoters Pvt. Ltd., a company based in Delhi, was assessed for the financial year 2014-15. During the assessment process, the ACIT, Circle-5(1), New Delhi, raised certain tax demands that the company disputed. Consequently, Brillanto Promoters Pvt. Ltd. filed an appeal against the assessment order before the Income Tax Appellate Tribunal (ITAT) Delhi, seeking relief from the demands imposed.

The appeal was registered under ITA No. 6269/DEL/2019 and was set for hearing before the tribunal. However, before the hearing took place, the Government of India introduced the Vivad Se Vishwas Scheme 2020, which provided a new avenue for taxpayers to settle their disputes amicably.

Why the Case Was Filed

The primary reason for filing the appeal was to challenge the assessment order issued by the ACIT, Circle-5(1), New Delhi, for the assessment year 2014-15. Brillanto Promoters Pvt. Ltd. disputed the tax liabilities assessed by the department and sought relief from the appellate authorities. The appeal aimed to address the perceived discrepancies in the assessment and to reduce the tax burden that was imposed as a result of the order.

The company believed that the assessment was not in line with the applicable provisions of the Income Tax Act, 1961, and therefore approached the ITAT for redressal. The appeal was seen as a necessary step to contest the additions and adjustments made by the assessing officer.

The Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme was introduced in 2020 as a measure to resolve long-standing tax disputes between taxpayers and the Income Tax Department. Under the scheme, taxpayers could settle their disputes by paying the disputed tax amount, with a complete waiver of interest, penalties, and prosecution. This scheme was part of the government’s effort to reduce litigation and provide a simplified resolution mechanism for tax disputes.

In light of the benefits offered by the Vivad Se Vishwas Scheme, Brillanto Promoters Pvt. Ltd. decided to opt for this scheme to settle their tax dispute for the assessment year 2014-15. The company submitted a request to withdraw their appeal, indicating that they had chosen to resolve the dispute under the scheme.

Proceedings at the ITAT

The appeal was scheduled for hearing on 29th September 2021 before the ITAT Delhi Bench ‘E’. The bench consisted of Shri R. K. Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member. On the date of the hearing, the learned counsel for the appellant, Sh. C.S. Anand, Advocate, informed the tribunal that the appellant had opted to settle the tax dispute under the Vivad Se Vishwas Scheme 2020.

A letter dated 29th June 2021 was submitted by the appellant’s counsel, requesting the withdrawal of the appeal. The letter also mentioned that a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, had been filed, confirming the settlement of the dispute under the scheme.

The learned Senior Departmental Representative (DR), Sh. Gaurav Pundir, raised no objections to the withdrawal request. The tribunal, after considering the request and the absence of any objections from the revenue’s side, accepted the appellant’s request for withdrawal.

Tribunal’s Findings and Conclusion

The ITAT noted that the appellant had chosen to settle the dispute under the Vivad Se Vishwas Scheme 2020, and a certificate to that effect had been submitted. Given the circumstances, the tribunal found no reason to continue with the appeal and decided to dismiss it as withdrawn.

In the final order, the tribunal dismissed the appeal as withdrawn. The decision was announced on the same day, 29th September 2021, during the virtual hearing. The tribunal’s decision was straightforward, recognizing the appellant’s decision to utilize the Vivad Se Vishwas Scheme as an effective means to resolve the dispute.

Significance of the Decision

The decision to withdraw the appeal under the Vivad Se Vishwas Scheme underscores the scheme’s effectiveness in providing a timely and amicable resolution to tax disputes. For Brillanto Promoters Pvt. Ltd., opting for the scheme allowed them to settle the tax arrears without the need for prolonged litigation and the associated costs.

The dismissal of the appeal as withdrawn highlights the tribunal’s role in facilitating the resolution of disputes under the scheme. This case serves as a significant example of how taxpayers can benefit from government initiatives aimed at reducing litigation and encouraging compliance.

Final Judgment

The final judgment in the case of Brillanto Promoters Pvt. Ltd. vs ACIT (ITA No. 6269/DEL/2019) resulted in the dismissal of the appeal as withdrawn. The tribunal acknowledged the appellant’s decision to settle the matter under the Vivad Se Vishwas Scheme, bringing the dispute to a close without further litigation.

Bench: Shri R. K. Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member

Order Pronounced On: 29th September 2021

Result: The appeal was dismissed as withdrawn under the Vivad Se Vishwas Scheme, 2020.

Brillanto Promoters Pvt. Ltd. vs ACIT – Appeal Withdrawal under Vivad Se Vishwas Scheme – ITA No. 6269/DEL/2019 (Assessment Year 2014-15)