This document provides a detailed analysis of the Income Tax Appellate Tribunal’s decision on Cordial Hospitalities Pvt. Ltd. against the Income Tax Officer, Ward- 6(3), New Delhi, regarding the assessment year 2009-10. The case was filed under ITA 4681/DEL/2019, with the final tribunal order dated August 31, 2020.
Cordial Hospitalities Pvt. Ltd. faced challenges with the ITO, Ward- 6(3), New Delhi concerning the assessment and adjudication of their income for the assessment year 2009-10. The appellant filed the case on May 23, 2019, seeking resolution of these issues.
The proceedings were overseen by Ms. Sushma Chowla, Vice President, and Dr. B.R.R. Kumar, Accountant Member, through video conferencing. The discussions focused on the technical and procedural aspects of income assessment and compliance with the Income-tax Act, 1961.
The primary issue under review was the appropriate application of income assessment and the subsequent legal remedies sought by Cordial Hospitalities Pvt. Ltd. The tribunal examined these aspects meticulously, considering the documentation and arguments presented by both parties.
The tribunal’s decision allowed for the withdrawal of the appeals by Cordial Hospitalities Pvt. Ltd., under the condition that they partake in the ‘Vivad Se Vishwas Scheme, 2020’. This resolution mechanism was accepted, provided the disputes regarding the tax arrears were resolved as per the scheme’s guidelines. A caveat was placed that if the scheme did not resolve the disputes, the appellant could re-initiate the appeals.
The tribunal’s disposition towards encouraging dispute resolution through the Vivad Se Vishwas Scheme reflects a significant step towards reducing litigious burdens and promoting a more conciliatory approach to tax disputes in India.
This judgment underlines the importance of governmental schemes in the judicial process, serving as a framework for similar cases, and enhancing the understanding of judicial discretion in tax-related disputes.
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘A’, NEW DELHI
Ms. Sushma Chowla, VP & Dr. B.R.R. Kumar, AM
[THROUGH VIDEO CONFERENCING]
Sl.No. ITA Nos. Appellant Respondent Assessment Years
1. 4681/Del/2019 Cordial Hospitalities Pvt. Ltd., H-12, Tropical Building, Connaught Place, New Delhi-110001. PAN-AACCX1234A ITO, Ward- 6(3), New Delhi. 2009-10
Appellant by: Ms. Ananya Kapoor, Adv.
Respondent by: Sh. M.Barnwal, Sr.DR
Date of Hearing: 28.08.2020
Date of Pronouncement: 28.08.2020
ORDER
PER SUSHMA CHOWLA, VP
The present bunch of appeals filed by assessee is against order of CIT(A)-32 New Delhi dated 29.03.2019 relating to assessment year 2009-10 against the order passed under section 154 of the Income-tax Act, 1961 (in short ‘the Act’).
2. The Ld. AR for the assessee has requested for withdrawal of the appeals filed by the assessee and stated that the assessee has opted the dispute relating to the tax arrears for the Assessment Year under consideration under “Vivad Se Vishwas Scheme, 2020”. An application to this effect has been filed by assessee dated 28.08.2020 alongwith copy of Form No.(1) i.e. form for filing declaration under “The Direct Tax Vivad Se Vishwas Act, 2020”.
3. The Ld. DR for the Revenue has no objection to the same.
4. However, the aforesaid is subject to a caveat that in case the dispute relating to tax arrears for the captioned assessment year is not ultimately resolved in terms of the afore-stated Act, the appellant (i.e. the assessee) shall be at liberty to approach the Tribunal for reinstitution of the appeal and the Tribunal shall consider such application appropriately as per law. The Ld.DR for the Revenue has no objection with regard to the aforesaid caveat.
5. In view of the above, we accept the request of the assessee for withdrawal of the appeals and the appeals are dismissed.
6. In the result, the appeals of the assessee are dismissed as withdrawn.
Order pronounced in the open court on 28th August, 2020.
Sd/- Sd/-
(DR. B.R.R. KUMAR) (SUSHMA CHOWLA)
ACCOUNTANT MEMBER VICE PRESIDENT
Dated : 28th August, 2020
* Amit Kumar *
Copy of the Order is forwarded to:
1. The Appellant
2. The Respondent
3. CIT(A)
4. Pr. CIT
5. DR, ITAT, Delhi
6. Guard file.
BY ORDER,
Assistant Registrar, ITAT, Delhi
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