Harbeen Narula vs ITO, Ward-51(1), New Delhi – Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2014-15

Case Overview: Harbeen Narula vs ITO, Ward-51(1), New Delhi – AY 2014-15

This article discusses the case of Harbeen Narula (the appellant) versus the Income Tax Officer, Ward-51(1), New Delhi (the respondent), under case number ITA 6675/DEL/2019. The appeal, related to the assessment year (AY) 2014-15, was filed on August 9, 2019, with the final tribunal order pronounced on February 10, 2021. The primary issue in this case was the withdrawal of the appeal under the Vivad Se Vishwas Scheme, 2020, a dispute resolution scheme introduced by the Government of India.

Background of the Case

Harbeen Narula, the appellant in this case, had filed an appeal with the Income Tax Appellate Tribunal (ITAT) against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]-17, New Delhi, dated June 30, 2019. The appeal pertained to certain tax arrears and disputes related to the assessment year 2014-15.

The appellant decided to opt for the “Vivad Se Vishwas Scheme, 2020,” a direct tax dispute resolution scheme introduced by the Indian government to settle tax disputes. Under this scheme, taxpayers were provided with an opportunity to settle their disputes by paying a specified percentage of the disputed tax and obtaining immunity from further litigation. This initiative aimed to reduce the litigation burden on both taxpayers and the government.

Proceedings Before the ITAT

The case was scheduled for a virtual hearing before the ITAT Delhi Bench ‘C’ on February 10, 2021. However, none appeared on behalf of the appellant during the virtual hearing. Instead, the appellant’s counsel submitted a letter dated January 21, 2021, via email, requesting the withdrawal of the appeal. The letter stated that the appellant had opted to settle the tax dispute under the Vivad Se Vishwas Scheme, 2020. A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also submitted, confirming the appellant’s participation in the scheme.

Response from the Respondent

The Senior Departmental Representative (DR) representing the Income Tax Department raised no objection to the appellant’s request for withdrawal of the appeal. This lack of objection further facilitated the dismissal of the appeal by the Tribunal.

Tribunal’s Decision

After considering the appellant’s request and the absence of any objection from the Revenue, the Tribunal decided to accept the request for withdrawal. Consequently, the ITAT dismissed the appeal as withdrawn. The order was pronounced at the conclusion of the virtual hearing on February 10, 2021.

Significance of the Ruling

The ruling in this case underscores the efficacy and acceptance of the Vivad Se Vishwas Scheme, 2020, as a means of resolving tax disputes in India. By opting for this scheme, the appellant could settle the tax dispute without prolonged litigation, thereby benefiting from the reduced burden and costs associated with continuing the legal process.

The dismissal of the appeal by the ITAT, following the appellant’s request for withdrawal under the scheme, highlights the Tribunal’s role in facilitating dispute resolution in line with the legislative intent of reducing tax-related litigation. The decision also reflects the cooperation between taxpayers and the Income Tax Department in achieving mutually beneficial outcomes through alternative dispute resolution mechanisms.

Conclusion

The case of Harbeen Narula vs ITO, Ward-51(1), New Delhi, serves as an important example of how the Vivad Se Vishwas Scheme, 2020, can be effectively utilized by taxpayers to resolve their disputes with the tax authorities. By opting for the scheme, the appellant not only settled the tax arrears but also avoided further litigation, leading to the swift closure of the case. The ITAT’s acceptance of the withdrawal further emphasizes the Tribunal’s support for such dispute resolution mechanisms, paving the way for more taxpayers to take advantage of similar schemes in the future.

Harbeen Narula vs ITO, Ward-51(1), New Delhi – Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2014-15