This document provides a detailed analysis of the ITAT case ITA No. 3710/DEL/2019 for the assessment year 2014-15, involving appellant Sky Light Hospitality LLP (previously Sky Light Hospitality Pvt. Ltd.), New Delhi, and respondent ITO Ward 28(1), New Delhi. The appeal addresses the resolution of pending tax disputes through the Direct Tax Vivad Se Vishwas Scheme (VSV) Act, 2020.
Sky Light Hospitality Pvt. Ltd. was converted into an LLP and is currently known as Sky Light Hospitality LLP. The appellant filed its return of income for the AY 2014-15 and the case was assessed by the ITO Ward 28(1), New Delhi. The appellant, seeking to resolve pending tax disputes, filed an appeal with the ITAT, which is the subject of this review.
The appeal was filed by Sky Light Hospitality LLP against the order dated 14/2/2019 passed by CIT(A)-32 for the assessment year 2014-15. During the proceedings, the appellant submitted an application dated 27.12.2020 expressing interest in resolving the pending issue through the Direct Tax Vivad Se Vishwas Scheme (VSV) Act, 2020. The appellant filed Declaration Form No. 1 & 2 under the VSV Scheme but had not yet received the Certificate in Form No. 3 from the authorities.
Before the ITAT, the appellant’s representative, Sh. Lalit Mohan, CA, conveyed that the appellant wished to withdraw the appeal to resolve the tax arrears through the VSV Scheme. The respondent, represented by Sh. Vinod Sharma, Sr. DR, did not object to this request. Consequently, the ITAT dismissed the appeal as withdrawn, with a caveat that if the dispute relating to tax arrears for the captioned assessment year is not ultimately resolved under the VSV Act, the appellant is at liberty to approach the Tribunal for reinstitution of the appeal.
The tribunal, presided over by Shri Anil Chaturvedi, Accountant Member, considered the submissions of the appellant and the respondent. The tribunal noted that the appellant had expressed its intention to resolve the pending issue through the VSV Scheme and had already filed the necessary declarations.
The ITAT acknowledged the appellant’s application to withdraw the appeal in light of the VSV Scheme. It was noted that the authorities had not yet granted the Certificate in Form No. 3, which is necessary for the resolution under the VSV Act. However, the tribunal accepted the withdrawal request, subject to the condition that the appellant could reinstitute the appeal if the dispute is not resolved through the VSV Scheme.
The ITAT concluded that the appeal filed by Sky Light Hospitality LLP be dismissed as withdrawn, with the option to reinstitute the appeal if necessary. The decision was pronounced in the open court on 28th December 2020.
In the result, the appeal of the assessee was dismissed. The order was pronounced in the open court on 28.12.2020.
This case highlights the appellant’s decision to utilize the Direct Tax Vivad Se Vishwas Scheme (VSV) Act, 2020, to resolve pending tax disputes. The tribunal’s acceptance of the withdrawal, with the provision for reinstitution if needed, demonstrates a flexible approach to dispute resolution under the VSV Scheme.
Case Review: Sky Light Hospitality LLP vs ITO Ward 28(1) – Assessment Year 2014-15
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