Hove Sales Pvt Ltd vs DCIT, Circle 11(1), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2011-12

Hove Sales Pvt Ltd vs DCIT, Circle 11(1), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2011-12

Case Number: ITA 6101/DEL/2019

Appellant: Hove Sales Pvt Ltd, New Delhi

Respondent: DCIT, Circle 11(1), New Delhi

Assessment Year: 2011-12

Order Type: Final Tribunal Order

Date of Order: 30th December 2020

Case Filed On: 18th July 2019

Pronounced On: 30th December 2020

Background of the Case

Hove Sales Pvt Ltd, a company situated in New Delhi, filed an appeal against the Deputy Commissioner of Income Tax (DCIT), Circle 11(1), New Delhi, for the assessment year 2011-12. The appeal was lodged with the Income Tax Appellate Tribunal (ITAT), Delhi Bench, under case number ITA 6101/DEL/2019. The appellant challenged the order issued by the learned Commissioner of Income Tax (Appeals)-22 [CIT(A)], New Delhi, dated 29th May 2019.

The appeal was initially filed to contest the tax demands raised by the department, which the appellant company believed were excessive and not in accordance with the law. However, a significant development occurred during the pendency of the appeal.

Vivad Se Vishwas Scheme

The Indian government introduced the Vivad Se Vishwas Scheme in 2020, designed to resolve pending tax disputes. The scheme provided taxpayers with an opportunity to settle their disputes by paying a specified amount of the disputed tax and receiving complete immunity from interest, penalties, and prosecution.

Hove Sales Pvt Ltd saw the benefits of this scheme and decided to resolve its tax dispute under the Vivad Se Vishwas Scheme. Consequently, the company opted to withdraw its appeal before the ITAT, which was pending adjudication.

Tribunal Proceedings

The case was scheduled for a Virtual Hearing before the Delhi “C” Bench of the ITAT on 30th December 2020. The bench was presided over by Vice President Shri G.S. Pannu and Judicial Member Shri K.N. Chary. During the hearing, no representative appeared on behalf of the assessee.

However, the learned counsel for the assessee submitted a letter dated 24th December 2020, requesting the withdrawal of the appeal. The letter, received via email, stated that the assessee 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 presented to confirm that the tax arrears for the assessment year in question had been settled.

Final Tribunal Order

After considering the request for withdrawal, the learned Senior Departmental Representative (DR), Shri Gaurav Dudeja, had no objection. The tribunal accepted the request and dismissed the appeal as withdrawn.

The final order was pronounced immediately following the conclusion of the Virtual Hearing on 30th December 2020. The decision marked the closure of the case, with the dispute resolved under the Vivad Se Vishwas Scheme.

Conclusion

The case of Hove Sales Pvt Ltd vs DCIT, Circle 11(1), New Delhi, demonstrates the effectiveness of the Vivad Se Vishwas Scheme in resolving long-standing tax disputes. By choosing to settle under the scheme, Hove Sales Pvt Ltd successfully avoided prolonged litigation and resolved its tax liability for the assessment year 2011-12.

This case highlights the benefits of alternative dispute resolution mechanisms introduced by the government and underscores the scheme’s role in reducing litigation and promoting a cooperative tax environment.

Note: The above summary provides an overview of the tribunal proceedings and the final order in the case of Hove Sales Pvt Ltd. For detailed information, interested parties are encouraged to refer to the full text of the tribunal’s order dated 30th December 2020.

Sd/-
(K.N.CHARY)
JUDICIAL MEMBER

Sd/-
(G.S. PANNU)
VICE PRESIDENT

Assistant Registrar

Hove Sales Pvt Ltd vs DCIT, Circle 11(1), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2011-12