The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘SMC-1’ addressed a notable case, ITA No. 5069/DEL/2019, involving Parvati Minerals Pvt. Ltd. and the Income Tax Officer (ITO) Ward-19(3), New Delhi, conducted through video conferencing on February 9, 2021. This case highlights the resolution of a tax dispute under the innovative Vivad Se Vishwas Scheme, introduced by the Government of India to reduce litigation in tax disputes.
Parvati Minerals Pvt. Ltd., a company based in New Delhi, found itself embroiled in a tax dispute for the assessment year 2012-13. The dispute initially led to an appeal against the order of the CIT(A)-7, New Delhi, dated March 12, 2019.
During the hearing, the company’s counsel requested the withdrawal of the appeal, citing the company’s decision to settle the dispute under the Vivad Se Vishwas Scheme. This decision was accompanied by the issuance of a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, acknowledging the settlement.
The withdrawal of the appeal under the Vivad Se Vishwas Scheme exemplifies the scheme’s effectiveness in facilitating quick resolution of tax disputes, reducing litigation, and allowing businesses to focus on their core operations without the overhead of protracted legal battles. The decision also underscores the mutual benefits for both the taxpayer and the revenue department, fostering a more cooperative environment in tax administration.
The case of Parvati Minerals Pvt. Ltd. vs. ITO, Ward-19(3) represents a significant precedent in the use of the Vivad Se Vishwas Scheme for resolving tax disputes. This example provides valuable insights into the practical application of this scheme and its impact on the landscape of tax litigation in India.
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