Final Resolution of Tax Dispute: Dinesh vs. ITO Ward-1(2), Ghaziabad (ITA 6162/DEL/2019)

Introduction

The case ITA No. 6162/DEL/2019 pertains to a tax dispute involving Dinesh, a resident of Ghaziabad, and the Income Tax Officer (ITO) Ward-1(2), Ghaziabad, regarding the assessment year 2009-10. The case, ultimately resolved under the Vivad Se Vishwas Scheme, reflects the government’s initiative to reduce the backlog of tax litigation through this dispute resolution mechanism.

Background of the Case

Dinesh’s tax filings for the assessment year 2009-10 were brought into question by the tax authorities, leading to adjustments that Dinesh contested. The initial appeal was made to the Commissioner of Income Tax (Appeals) in Ghaziabad, where certain additions and assessments were challenged. Dissatisfied with the outcome, Dinesh escalated the matter to the Income Tax Appellate Tribunal (ITAT).

Proceedings at the ITAT

The case was presented before Shri Anil Chaturvedi, the Accountant Member, during the ITAT proceedings held via video conferencing. The appellant’s representative, Ms. Mansi Jain, C.A., informed the Tribunal that Dinesh had opted for the Vivad Se Vishwas Scheme (VSV) 2020, a scheme introduced by the Indian government to settle tax disputes amicably. The necessary declarations under Form-1 and Form-2 were submitted, and Form-3 was issued by the tax department, indicating that the case was being processed under the scheme.

Judgment and Resolution

The Tribunal, acknowledging the appellant’s decision to settle under the Vivad Se Vishwas Scheme, dismissed the appeal. However, it was done with a caveat that allowed the appellant to approach the Tribunal for reinstitution of the appeal if the settlement under the scheme was not finalized. This provision ensures that the taxpayer’s rights are protected, should any issues arise in the finalization of the settlement.

Conclusion

The resolution of ITA No. 6162/DEL/2019 under the Vivad Se Vishwas Scheme underscores the effectiveness of this government initiative in facilitating the closure of tax disputes. By choosing this route, Dinesh was able to settle his tax liabilities for the assessment year 2009-10 without prolonged litigation. This case highlights the significance of alternative dispute resolution mechanisms in India’s tax system, promoting both compliance and efficiency.

Final Resolution of Tax Dispute: Dinesh vs. ITO Ward-1(2), Ghaziabad (ITA 6162/DEL/2019)