In a notable development within the Indian tax resolution landscape, Shanti Lal Porwal opted to withdraw his appeal against the ACIT, Circle-59(1), embracing the Vivad Se Vishwas Scheme for the assessment year 2009-10. This decision, pronounced on June 9, 2021, underlines the significant impact of alternative dispute resolution mechanisms in tax disputes.
The appeal, originally set against the order of the CIT(A)-19 dated February 11, 2019, was filed with the expectation to challenge certain tax assessments. However, the landscape of the dispute shifted when the assessee decided to utilize the Direct Tax Vivad Se Vishwas Act, 2020, aimed at reducing litigation in the taxation sphere.
The scheme was introduced as a government initiative to mitigate prolonged tax disputes and encourage a streamlined resolution process. By opting for this scheme, the assessee submitted to a less contentious, more predictable method of settling disputes, significantly shortening the litigation timeline and potentially reducing associated costs.
The tribunal session, conducted via video conferencing due to ongoing restrictions, witnessed a straightforward resolution. The appellant’s request for withdrawal was accepted after the submission of a certificate under Section 5(1) of the Vivad Se Vishwas Act, evidencing the settlement.
This case highlights the potential of the Vivad Se Vishwas Scheme to act as an effective tool for taxpayers seeking resolution for complex disputes. It provides a compelling alternative to conventional litigation, offering a path towards swift and efficient tax dispute resolution.
The dismissal of ITA 3734/DEL/2019 as withdrawn marks a pivotal moment for tax jurisprudence, showcasing the effectiveness of policy innovations like the Vivad Se Vishwas Scheme. This case serves as a critical reference for both legal professionals and taxpayers, illustrating the practical applications and benefits of opting for governmental dispute resolution schemes.
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