Gogia Leasing Ltd. vs ITO Ward 10(2) New Delhi – Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2010-11

Case Overview: Gogia Leasing Ltd. vs ITO Ward 10(2), New Delhi – AY 2010-11

This article provides a detailed overview of the Income Tax Appellate Tribunal’s (ITAT) decision in the case of Gogia Leasing Ltd., New Delhi (the appellant), versus the Income Tax Officer (ITO) Ward 10(2), New Delhi (the respondent). The appeal, registered under case number ITA 6681/DEL/2019, was initially filed by the appellant for the assessment year (AY) 2010-11. However, the appeal was later withdrawn by the appellant under the Direct Tax Vivad Se Vishwas Scheme, 2020. The final tribunal order was pronounced on September 29, 2021.

Background of the Case

Gogia Leasing Ltd., a company based in New Delhi, filed an appeal against the assessment order passed by the ITO Ward 10(2), New Delhi, for the AY 2010-11. The appeal was directed against the order of the Commissioner of Income Tax (Appeals)-4, New Delhi, dated April 3, 2019. The appellant sought to contest the tax arrears determined by the assessing officer for the said assessment year.

However, during the course of the proceedings, the appellant decided to opt for the Direct Tax Vivad Se Vishwas Scheme, 2020, a dispute resolution scheme introduced by the Indian government to settle pending tax disputes. Under this scheme, the taxpayer can resolve disputes by paying the disputed tax amount without any interest or penalty. The scheme also allows for the withdrawal of appeals pending before various appellate forums.

Key Developments Leading to Withdrawal

On August 25, 2021, the appellant, through its legal counsel, submitted a letter to the ITAT requesting the withdrawal of its appeal. The letter, received via email, indicated that the appellant had chosen to settle the dispute under the Vivad Se Vishwas Scheme and had filed the necessary Form 1 and Form 2 under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020. These forms are essential to apply for the scheme, with Form 1 being the declaration form and Form 2 being the undertaking to withdraw any appeals related to the dispute.

Why the Case Was Filed

The initial case was filed by Gogia Leasing Ltd. to challenge the assessment order passed by the ITO for the AY 2010-11. The appellant sought to contest the tax liability determined by the assessing officer. However, the specific grounds of appeal, including the issues raised by the appellant, are not detailed in the tribunal’s final order since the appeal was withdrawn before substantial arguments were presented.

Proceedings Before the ITAT

The matter came up for hearing before the ITAT Delhi Bench ‘E’ on September 29, 2021. The bench comprised Shri R.K. Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member, who presided over the virtual hearing.

During the hearing, the appellant’s legal representative, Shri Aditya Chhajed, Advocate, reiterated the request for withdrawal of the appeal in light of the Vivad Se Vishwas Scheme. The respondent, represented by Shri Gaurav Pundir, Senior Departmental Representative (DR), did not object to the withdrawal request.

After considering the appellant’s request and noting the lack of objection from the respondent, the ITAT bench accepted the withdrawal of the appeal. Consequently, the tribunal dismissed the appeal as withdrawn, with liberty granted to the appellant to approach the Tribunal in case the Form 3 certificate (which signifies the settlement under the scheme) was not issued by the designated authority.

Conclusion of the Case

The final order pronounced by the ITAT on September 29, 2021, concluded the proceedings for the AY 2010-11 between Gogia Leasing Ltd. and ITO Ward 10(2), New Delhi. The Tribunal acknowledged the appellant’s decision to settle the dispute under the Vivad Se Vishwas Scheme and dismissed the appeal accordingly.

This case is a significant example of how taxpayers can leverage the Vivad Se Vishwas Scheme to resolve long-standing tax disputes amicably. By opting for the scheme, Gogia Leasing Ltd. not only resolved its tax arrears but also avoided prolonged litigation, ensuring a quicker resolution of its tax matters for the AY 2010-11.

Implications for Future Disputes

The Vivad Se Vishwas Scheme has provided a viable option for taxpayers to settle disputes without incurring additional costs in the form of interest and penalties. The success of this scheme, as demonstrated in the case of Gogia Leasing Ltd., indicates that it can be a preferred route for other taxpayers facing similar disputes.

Taxpayers who have pending appeals before various appellate forums should consider the benefits of opting for this scheme to achieve a faster and more cost-effective resolution of their disputes. The scheme’s structure ensures that taxpayers can conclude their matters with finality, allowing them to focus on future compliance and business activities.

In conclusion, the ITAT’s order in the case of Gogia Leasing Ltd. vs ITO Ward 10(2), New Delhi, serves as a reminder of the opportunities available under the Vivad Se Vishwas Scheme. It underscores the importance of evaluating available dispute resolution mechanisms to make informed decisions that align with the taxpayer’s financial and business objectives.

Gogia Leasing Ltd. vs ITO Ward 10(2) New Delhi – Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2010-11