Delhi Iron & Steel Co. Pvt. Ltd. vs DCIT: Appeal Withdrawn Under Vivad Se Vishwas Scheme – ITA 6593/DEL/2019

Delhi Iron & Steel Co. Pvt. Ltd. vs DCIT: Appeal Withdrawn Under Vivad Se Vishwas Scheme – ITA 6593/DEL/2019

The case of Delhi Iron & Steel Co. Pvt. Ltd. vs Deputy Commissioner of Income Tax (DCIT), Central Circle-1, Ghaziabad pertains to the assessment year 2010-11. Delhi Iron & Steel Co. Pvt. Ltd., a company based in Ghaziabad, had filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order passed by the Commissioner of Income Tax (Appeals)-IV, Kanpur, dated 11th June 2019. The final order in this case was pronounced on 16th September 2022 by the Delhi Bench ‘B’ of the ITAT, presided over by Shri Saktijit Dey, Judicial Member, and Shri N.K. Billaiya, Accountant Member.

Background of the Case

The appeal was filed by Delhi Iron & Steel Co. Pvt. Ltd. challenging the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2010-11. The company sought relief from the penalty, which was imposed as a result of the assessment. However, during the course of the appeal proceedings, the appellant opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. This scheme, introduced by the Government of India, was designed to resolve pending tax disputes by allowing taxpayers to pay a specified amount in exchange for the waiver of interest, penalties, and prosecution.

Delhi Iron & Steel Co. Pvt. Ltd., after applying for and obtaining Form No. 5 under the Vivad Se Vishwas Scheme and settling the tax dispute, sought to withdraw the appeal. A letter requesting withdrawal was submitted by the appellant’s counsel, citing the successful settlement under the scheme.

Request for Withdrawal

In the hearing held on 16th September 2022, the counsel for Delhi Iron & Steel Co. Pvt. Ltd. was not present. However, a letter dated 8th August 2022 was on record, requesting the withdrawal of the appeal. The letter mentioned that the appellant had settled the dispute for the assessment year 2010-11 under the Vivad Se Vishwas Scheme, and the penalty imposed did not survive.

The request for withdrawal was presented before the ITAT, and the Revenue, represented by the Senior Departmental Representative (DR), did not object to the withdrawal application. Considering the circumstances and the absence of any objections from the revenue side, the ITAT allowed the withdrawal of the appeal.

ITAT’s Decision

The ITAT, in its order dated 16th September 2022, noted that the appellant had opted for the Vivad Se Vishwas Scheme and had settled the tax dispute for the assessment year 2010-11. Given this, the Tribunal found it appropriate to allow the withdrawal of the appeal. Consequently, the appeal filed by Delhi Iron & Steel Co. Pvt. Ltd. was dismissed as withdrawn.

The Tribunal’s decision was announced in the open court on the same day, concluding the proceedings for the case. The ITAT’s order highlighted the successful resolution of the tax dispute through the Vivad Se Vishwas Scheme, which has been an effective mechanism for settling long-pending tax disputes in India.

Conclusion

The case of Delhi Iron & Steel Co. Pvt. Ltd. vs DCIT exemplifies the efficiency of the Vivad Se Vishwas Scheme in resolving tax disputes amicably. By opting for this scheme, companies like Delhi Iron & Steel Co. Pvt. Ltd. were able to settle their tax liabilities without prolonged litigation, thereby reducing the burden on both the taxpayer and the judiciary. The ITAT’s order reflects the Tribunal’s support for such alternative dispute resolution mechanisms, which help in achieving a faster resolution of tax-related matters.

Delhi Iron & Steel Co. Pvt. Ltd. vs DCIT: Appeal Withdrawn Under Vivad Se Vishwas Scheme – ITA 6593/DEL/2019