Case Analysis: Augere Wireless (Merged with Bharti Airtel) vs. ACIT for A.Y. 2016-17

Introduction

This article provides an in-depth analysis of the Income Tax Appellate Tribunal (ITAT) Delhi Bench decision regarding the case between Augere Wireless Broadband India Pvt. Ltd. (merged with Bharti Airtel Ltd.) and the Assistant Commissioner of Income Tax (ACIT), Circle-3(2), New Delhi for the assessment year 2016-17.

Background of the Case

The case filed by Augere Wireless Broadband India Pvt. Ltd., which is now part of Bharti Airtel Ltd., contested the order issued by the CIT(A)-1, New Delhi dated June 10, 2019. The dispute pertains to tax arrears for the assessment year 2016-17.

Settlement under Vivad Se Vishwas Scheme

The appeal was notable as it was settled under the ‘Vivad Se Vishwas Scheme, 2020,’ a scheme introduced by the Indian government to reduce litigation in direct tax matters. Under this scheme, the appellant company chose to settle the dispute, leading to a withdrawal of the appeal, as confirmed through a certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020.

Legal Proceedings and Decision

During the virtual hearing on February 25, 2021, no representative appeared on behalf of Augere Wireless, but a letter dated February 17, 2021, was submitted requesting the withdrawal of the appeal. The Senior DR had no objections to this request, leading to the dismissal of the appeal as withdrawn.

Implications of the Case

The resolution of this case under the Vivad Se Vishwas Scheme is significant as it highlights the government’s initiative to mitigate long-standing tax disputes and reduce the burden on the judiciary. This case serves as a reference for other corporations looking to settle disputes under this scheme.

Conclusion

The case between Augere Wireless Broadband India Pvt. Ltd and ACIT represents a critical example of how corporate tax disputes can be effectively resolved through governmental schemes aimed at reducing litigation. The decision to withdraw the appeal marks a pivotal development in the landscape of Indian tax litigation.

Case Analysis: Augere Wireless (Merged with Bharti Airtel) vs. ACIT for A.Y. 2016-17