The case of Avinash Bhambhan vs. ITO Ward-40(5) represents a pivotal decision in tax dispute resolution under the Vivad Se Vishwas Scheme for the assessment year 2014-15.
Avinash Bhambhan, the appellant, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)-34, New Delhi. The original dispute was over the tax assessment for the year 2014-15, which Bhambhan contested, leading to this appeal.
The proceedings took a turn when Bhambhan opted to settle the dispute under the Vivad Se Vishwas Scheme, designed to reduce litigation in direct taxes. A notable aspect of the case was the appellant’s condition that if the settlement did not resolve the issues as anticipated, he reserved the right to reinstitute the appeal.
This case underscores the flexibility and potential of the Vivad Se Vishwas Scheme as a mechanism for resolving tax disputes. The Tribunal accepted the withdrawal of the appeal with a caveat for possible reinstatement, demonstrating adaptability in judicial proceedings concerning tax litigation.
The dismissal of the appeal as withdrawn, subject to the conditions of the settlement under the scheme, marks a significant moment in the use of alternative dispute resolutions in tax matters. This case provides valuable insights into the strategic use of such schemes to mitigate lengthy legal disputes in taxation.
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