The case filed by Sarita Vats against the Income Tax Officer (ITO) Ward 4(1), Gurgaon, under the case number ITA 5280/DEL/2019 for the assessment year 2014-15, reflects a strategic approach to resolving tax disputes through the Vivad Se Vishwas Scheme. This tribunal decision, pronounced on October 27, 2021, marks a significant endpoint to the legal proceedings initially challenged by the appellant.
The dispute began with the original order passed by the CIT(A)-01, Gurgaon on March 28, 2019. Disagreements regarding the tax calculations led Sarita Vats to file an appeal. However, the unfolding of events shifted the dynamics of the case, showcasing the utility of alternative dispute resolution mechanisms under recent tax laws. The Vivad Se Vishwas Scheme, introduced by the government to reduce litigation in direct tax disputes, played a pivotal role in this case.
As the proceedings were set to be heard via video conferencing, the appellant, through counsel, opted to withdraw the appeal. The request for withdrawal was officially accepted on the hearing date, October 27, 2021, with no objections from the Senior Departmental Representative. This decision was facilitated by the submission of a certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, confirming the appellant’s desire to settle under the scheme.
The case exemplifies the potential benefits of the Vivad Se Vishwas Scheme, allowing taxpayers an avenue to resolve disputes without prolonged litigation. It also highlights the importance of strategic decisions in tax planning and dispute resolution. This tribunal order not only resolved the immediate fiscal discrepancies but also set a precedent for future cases, emphasizing the value of government schemes in reducing the backlog of cases and fostering a cooperative tax environment.
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