Dinesh Agarwal & Sons HUF vs ITO: Withdrawal Under Vivad Se Vishwas Scheme – ITA 6600/DEL/2019

Dinesh Agarwal & Sons HUF vs ITO: Withdrawal Under Vivad Se Vishwas Scheme – ITA 6600/DEL/2019

The case of Dinesh Agarwal & Sons HUF vs Income Tax Officer, Ward-52(4), New Delhi pertains to the assessment year 2011-12. Dinesh Agarwal & Sons HUF, based in New Delhi, had filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order passed by the Commissioner of Income Tax (Appeals), New Delhi, dated 20th June 2019. The final order in this case was pronounced on 3rd December 2020 by the Delhi Bench ‘C’ of the ITAT, presided over by Shri G.S. Pannu, Vice President, and Shri Amit Shukla, Judicial Member.

Background of the Case

The appeal was filed by Dinesh Agarwal & Sons HUF challenging the order passed by the CIT(A) for the assessment year 2011-12. The case involved a dispute related to the income assessed for that year. However, during 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.

Dinesh Agarwal & Sons HUF, after applying for and obtaining Form No. 3 under the Vivad Se Vishwas Scheme, sought to withdraw the appeal. The application for withdrawal was submitted by the appellant’s counsel during the hearing.

Request for Withdrawal

In the hearing held on 3rd December 2020, the counsel for Dinesh Agarwal & Sons HUF informed the Tribunal that the appellant had opted for the Vivad Se Vishwas Scheme and had successfully settled the tax dispute for the assessment year 2011-12. The request for withdrawal was presented before the ITAT, and the revenue side, represented by the Senior Departmental Representative (DR), raised no objections 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. The Tribunal acknowledged the appellant’s decision to settle the dispute under the scheme and the successful payment of the required taxes.

ITAT’s Decision

The ITAT, in its order dated 3rd December 2020, noted that the appellant had opted for the Vivad Se Vishwas Scheme and had paid the required taxes as per the scheme’s provisions. Given this, the Tribunal found it appropriate to allow the withdrawal of the appeal. Consequently, the appeal filed by Dinesh Agarwal & Sons HUF 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 Dinesh Agarwal & Sons HUF vs ITO exemplifies the efficiency of the Vivad Se Vishwas Scheme in resolving tax disputes amicably. By opting for this scheme, entities like Dinesh Agarwal & Sons HUF 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.

Dinesh Agarwal & Sons HUF vs ITO: Withdrawal Under Vivad Se Vishwas Scheme – ITA 6600/DEL/2019