In a strategic move to mitigate prolonged litigation, Bharat Heavy Electricals Limited (BHEL) opted to withdraw its appeal against the ACIT, Circle-4(2), choosing the Direct Tax Vivad Se Vishwas Act, 2020 for the assessment year 2014-15. This decision, marked on December 31, 2020, emphasizes the utility of this resolution scheme in resolving tax disputes efficiently.
The appeal was initially filed against the order of the CIT(A)-12, dated February 22, 2019, challenging tax assessments for the fiscal year. However, the circumstances shifted when BHEL decided to settle the dispute under the Vivad Se Vishwas Scheme, introduced by the government to reduce pending litigation by providing a structured and less adversarial tax resolution process.
This scheme provides a platform for taxpayers to settle disputes without further litigation, thereby reducing the burden on the judiciary and the cost for the appellants. It offers a straightforward framework to settle tax arrears while providing waivers from penalties and interest under certain conditions.
The Virtual Hearing conducted on December 31, 2020, led to an acceptance of the withdrawal request from BHEL. The tribunal acknowledged the submission of the withdrawal certificate under Section 5(1) of the Vivad Se Vishwas Act, signifying compliance with the scheme’s requirements.
The case of BHEL highlights the practical applications and benefits of opting for the Vivad Se Vishwas Scheme. This decision serves as a precedent for other corporations facing similar tax-related disputes, illustrating a move towards a more cooperative and less litigious approach in tax matters.
The dismissal of ITA 3735/DEL/2019 as withdrawn sets a significant precedent in tax jurisprudence, showcasing the effectiveness of policy measures like the Vivad Se Vishwas Scheme. It reflects the evolving landscape of tax dispute resolution in India, aiming for a more streamlined and efficient system.
Case Analysis of ITA 3735/DEL/2019: BHEL vs ACIT – Opting for Vivad Se Vishwas Scheme for AY 2014-15
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