This document presents a thorough analysis of the Income Tax Appellate Tribunal’s decision in the case of Adroitec Information Systems Pvt. Ltd. vs. ITO, Ward-1(3), New Delhi, focusing on a tax dispute for the assessment year 2013-14 resolved under the Vivad Se Vishwas Scheme, 2020.
The case pertains to a dispute over tax arrears which the appellant, Adroitec Information Systems Pvt. Ltd., decided to settle under the Vivad Se Vishwas Scheme, thereby requesting the withdrawal of their appeal before the Tribunal. The Tribunal’s proceedings and the final decision were conducted via video conferencing due to the restrictions at the time.
The appeal was initially directed against the order of the learned Commissioner of Income Tax (Appeals), New Delhi. However, the introduction of the Vivad Se Vishwas Scheme provided a pathway for dispute resolution without further litigation, which the appellant opted for. The Tribunal accepted the withdrawal after the appellant submitted a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming their participation in the scheme.
The resolution of this case highlights the effectiveness of alternative dispute resolution mechanisms in the tax domain, particularly the Vivad Se Vishwas Scheme, which aims to reduce pending litigation and facilitate taxpayers’ compliance. This case serves as a reference point for other entities considering similar avenues for resolving tax disputes.
The case of ITA No. 82/DEL/2019 is a significant example of the shifting dynamics in tax litigation, with more companies looking towards government schemes to settle disputes amicably. The decision underscores the importance of understanding legal options for dispute resolution and compliance.
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