Detailed Review of ITA No. 2097/DEL/2019: ASG Securities & Services Pvt Ltd vs. ITO Ward 3(2)
Date of Hearing: March 3, 2021
Date of Pronouncement: March 3, 2021
Background
ASG Securities & Services Pvt Ltd filed an appeal against the order of CIT(A)-01, New Delhi, for the assessment year 2014-15, which they later withdrew under the Vivad Se Vishwas Scheme, 2020. This scheme is part of the government’s initiative to reduce pending litigation related to direct taxes and provides a framework for settling disputes amicably.
Legal Context
The appeal was initially filed due to disagreements over tax calculations and assessments. The Vivad Se Vishwas Scheme, introduced to simplify the resolution of pending tax disputes, allows appellants to settle their disputes without additional litigation. This move by ASG Securities showcases how taxpayers can utilize this scheme to resolve conflicts effectively.
Withdrawal of the Appeal
The withdrawal was facilitated by the submission of a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, indicating the company’s commitment to settle. The tribunal accepted the withdrawal, and the appeal was dismissed as withdrawn, concluding the proceedings without further litigation.
Implications
This case highlights the utility of the Vivad Se Vishwas Scheme as a strategic option for companies to manage their tax matters. It demonstrates the benefits of such schemes in promoting a non-adversarial tax system and reducing the burden on the judiciary. Companies looking to manage tax disputes might consider this scheme as a viable alternative to prolonged litigation.
Conclusion
The resolution of ITA No. 2097/DEL/2019 under the Vivad Se Vishwas Scheme exemplifies its role in facilitating effective dispute resolution in tax matters and underscores its importance as a tool for simplifying the legal landscape of tax disputes in India.