Himalaya Realtech Pvt Ltd vs. ITO Ward-11(2): Withdrawal of Penalty Appeal for AY 2012-13

Overview of Himalaya Realtech Pvt Ltd vs. ITO Ward-11(2) Case

Case Number: ITA No. 6725/Del/2019

Assessment Year: 2012-13

Appellant: Himalaya Realtech Pvt Ltd, New Delhi

Respondent: Income Tax Officer, Ward 11(2), New Delhi

Result: Appeal withdrawn

Background

The case involves an appeal filed by Himalaya Realtech Pvt Ltd against a penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 for the assessment year 2012-13. The appeal was directed against the order of the Commissioner of Income-tax (Appeals), which affirmed the penalty imposed by the Assessing Officer.

Proceedings and Decision

The hearing took place on June 29, 2022, before Shri Pradip Kumar Kedia and Shri N.K. Choudhry, members of the ITAT Delhi Bench. Despite the absence of representatives for the appellant, a submission was made indicating that the assessee had opted to settle the quantum dispute under the Vivad Se Vishwas Scheme, 2020. Consequently, a certificate from the Revenue Department acknowledging the settlement was presented, leading to the withdrawal of the penalty appeal.

Legal Analysis

This decision highlights the applicability of the Vivad Se Vishwas Scheme to ongoing litigation, allowing taxpayers to settle disputes out of court and avoid prolonged legal battles. The withdrawal of the appeal post-settlement underscores the scheme’s effectiveness in reducing litigious burdens and providing taxpayers with a platform for amicable resolutions.

Implications

The case serves as a pertinent example of how legislative schemes like Vivad Se Vishwas can influence the course of tax litigation. For businesses and individuals alike, understanding these mechanisms can be crucial for strategic decision-making in managing tax-related disputes.

Himalaya Realtech Pvt Ltd vs. ITO Ward-11(2): Withdrawal of Penalty Appeal for AY 2012-13