GKN Driveline (India) Ltd. Settles Tax Dispute for AY 2010-11 Under Vivad Se Vishwas Scheme

GKN Driveline (India) Ltd. Settles Tax Dispute for AY 2010-11 Under Vivad Se Vishwas Scheme

In a recent development, GKN Driveline (India) Ltd., a prominent automotive component manufacturer based in Faridabad, Haryana, decided to resolve its ongoing tax dispute with the Income Tax Department for the assessment year 2010-11. The case, filed under appeal number ITA 6605/DEL/2019, was related to tax arrears for the mentioned assessment year and was initially filed on 8th August 2019.

The appellant, GKN Driveline (India) Ltd., faced scrutiny from the Deputy Commissioner of Income Tax (DCIT), Circle-1, Large Tax Payer Unit (LTU), New Delhi. However, in a strategic move to resolve the dispute, the company opted to take advantage of the Government of India’s Vivad Se Vishwas Scheme, 2020, which was introduced to settle pending tax disputes by offering taxpayers a chance to clear their dues under favorable terms.

The Vivad Se Vishwas Scheme provided an opportunity for taxpayers to settle their disputes by paying the disputed tax amount while receiving waivers on interest, penalties, and other levies. GKN Driveline (India) Ltd. submitted a request to withdraw their appeals, as they had already settled the tax arrears under the scheme.

On 1st March 2021, GKN Driveline (India) Ltd. officially requested the withdrawal of their appeal in a letter submitted to the Income Tax Appellate Tribunal (ITAT). The letter mentioned that the company had obtained a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming the settlement of the tax dispute.

During the virtual hearing held on 12th March 2021, the case was presented before the ITAT’s Delhi Bench ‘A’, consisting of Vice President Shri G.S. Pannu and Judicial Member Shri K. Narasimha Chary. The tribunal noted that neither the appellant nor their representatives appeared for the hearing, indicating their intention to withdraw from the case following the settlement under the scheme.

The Senior Departmental Representative (DR), Sh. M. Baranwal, had no objections to the withdrawal request. Consequently, the ITAT accepted the request and dismissed the appeals for both assessment years 2010-11 and 2011-12. The final order was pronounced at the conclusion of the virtual hearing on 12th March 2021.

The decision marks the conclusion of the tax dispute for GKN Driveline (India) Ltd., ensuring a smoother financial journey ahead. The Vivad Se Vishwas Scheme has proven to be a viable solution for many companies seeking to resolve long-standing tax issues without the burden of prolonged litigation.

This case underscores the significance of the Vivad Se Vishwas Scheme in providing taxpayers with an effective means to settle disputes and focus on their core business activities, contributing to a more business-friendly environment in India.

GKN Driveline (India) Ltd. Settles Tax Dispute for AY 2010-11 Under Vivad Se Vishwas Scheme