Case Summary of Viksit Trading and Holding P. Ltd vs. ITO, Ward-26(3), New Delhi, ITA No. 6141/DEL/2019

Introduction

The case of Viksit Trading and Holding P. Ltd vs. ITO, Ward-26(3), New Delhi pertains to an appeal filed against the CIT(A)-9’s decision dated June 10, 2019, for the assessment year 2011-12. The appeal, however, was withdrawn by the appellant in favor of settling under the Vivaad Se Vishwas Scheme, 2020.

Background

Viksit Trading and Holding P. Ltd filed an appeal against the order of the CIT(A)-9 which was pertinent to discrepancies in their financial statements for the assessment year 2011-12. The case was scheduled for hearing on January 25, 2021, by which time the appellant decided to opt for a governmental amnesty scheme aimed at dispute resolution.

Details of the Appeal

The appellant, represented by none during the hearing, communicated through a letter the intention to withdraw the appeal. This decision was motivated by their participation in the Vivaad Se Vishwas Scheme, a legal framework designed to reduce litigation in direct taxes.

Decision of the Tribunal

The tribunal, presided over by Sh. N. K. Billaiya, Accountant Member, accepted the withdrawal of the appeal. However, it granted the liberty to the appellant to revive the appeal should there be a technical issue in settling the dispute under the scheme mentioned.

Conclusion

This case illustrates the procedural aspect of tax litigation where appellants opt for alternative dispute resolution mechanisms provided by the government to mitigate prolonged legal battles. The decision to withdraw highlights the strategic decisions companies may undertake to align with fiscal incentives offered by the legal system.

Case Summary of Viksit Trading and Holding P. Ltd vs. ITO, Ward-26(3), New Delhi, ITA No. 6141/DEL/2019