In a notable resolution of ongoing tax disputes, GAIL (India) Ltd., a major public sector enterprise, opted to settle its disputes under the Vivad Se Vishwas Scheme for the assessment year 2014-15. This strategic decision led to the withdrawal of multiple appeals, including ITA No. 543/Del/2019, against the orders of the learned CIT(A) dated October 18, 2018.
The appeals, which also covered the subsequent assessment years up to 2016-17, were initially lodged in response to disagreements over tax assessments made by the Deputy Commissioner of Income Tax, Circle-LTU, New Delhi. The disputes were part of a broader series of cases that involved detailed scrutiny of tax liabilities calculated for several fiscal years.
On March 3, 2021, through a virtual hearing, the Income Tax Appellate Tribunal (ITAT) accepted GAIL’s request for withdrawal of the appeals, acknowledging the company’s decision to engage with the Vivad Se Vishwas Scheme, which aims to mitigate long-standing tax disputes across various sectors. This decision not only facilitated a quicker resolution but also underscored the effectiveness of alternative dispute resolution mechanisms in tax matters.
The resolution under the Vivad Se Vishwas Scheme is particularly significant for GAIL as it aligns with the company’s broader compliance strategies and financial planning. By settling disputes amicably, GAIL ensures continued focus on its core operations without the overhang of protracted legal battles. The case serves as a precedent for other corporations facing similar fiscal and legal challenges, illustrating the benefits of government schemes designed to reduce litigation in the Indian tax system.
GAIL (India) Ltd. Resolves Tax Dispute Under Vivad Se Vishwas Scheme for AY 2014-15
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