HPS Concrete vs DCIT Central Circle, Ghaziabad: Withdrawal of Penalty Appeal Under Vivad Se Vishwas Scheme for AY 2017-18

Case Overview: HPS Concrete vs DCIT Central Circle, Ghaziabad

Case Number: ITA 6224/DEL/2019

Appellant: HPS Concrete, New Delhi

Respondent: DCIT Central Circle, Ghaziabad

Assessment Year: 2017-18

Case Filed On: 2019-07-22

Order Type: Final Tribunal Order

Date of Order: 2022-07-06

Pronounced On: 2022-07-06

Introduction

The case of HPS Concrete vs DCIT Central Circle, Ghaziabad pertains to an appeal filed by HPS Concrete, a New Delhi-based company, against the order passed by the Commissioner of Income Tax (Appeals)-IV, New Delhi, under Section 271(1)(b) of the Income Tax Act, 1961, for the assessment year 2017-18. The appeal was subsequently withdrawn by the appellant after the penalty dispute was settled under the Vivad Se Vishwas Scheme, 2020.

Background of the Case

HPS Concrete had appealed against the penalty imposed by the Assessing Officer under Section 271(1)(b) of the Income Tax Act, which pertains to penalties for failure to comply with notices or orders issued under the Act. The Commissioner of Income Tax (Appeals)-IV, New Delhi, had affirmed the penalty in an order dated 30.04.2019.

Subsequently, HPS Concrete opted to settle the penalty dispute under the Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the Indian government to provide a resolution mechanism for pending direct tax disputes by offering taxpayers an opportunity to settle disputes by paying a specified amount, with waivers on interest and penalties.

Proceedings Before the Tribunal

The appeal was listed for hearing on 06.07.2022 before the Delhi Bench ‘B’ of the Income Tax Appellate Tribunal (ITAT). The appellant was represented by Shri Deepesh Garg, Advocate, while the Revenue was represented by Ms. Sangeeta Yadav, Senior Departmental Representative (DR).

At the outset of the proceedings, the appellant’s counsel informed the tribunal that HPS Concrete had settled the penalty dispute under the Vivad Se Vishwas Scheme, 2020. The counsel submitted that the Revenue Department had issued Form No. 5 on 11.06.2021, confirming the full and final settlement of the tax arrears under the scheme. Consequently, the appellant requested that the appeal be treated as withdrawn.

The Senior DR did not object to the appellant’s request for withdrawal of the appeal. Given the circumstances, the tribunal found it appropriate to dismiss the appeal as withdrawn.

Tribunal’s Decision

The order was delivered by Accountant Member Shri Shamim Yahya and Judicial Member Shri N.K. Choudhry on 06.07.2022. The tribunal accepted the withdrawal of the appeal, recognizing that the penalty imposed under Section 271(1)(b) of the Income Tax Act had been effectively resolved under the Vivad Se Vishwas Scheme.

The tribunal’s order reflects the flexibility provided under the Vivad Se Vishwas Scheme for resolving tax disputes. By settling the dispute under the scheme, HPS Concrete was able to withdraw the appeal, bringing the matter to a close without further litigation.

Conclusion

The case of HPS Concrete vs DCIT Central Circle, Ghaziabad serves as a significant example of how the Vivad Se Vishwas Scheme, 2020, has been instrumental in resolving pending tax disputes in India. By opting for the scheme, HPS Concrete was able to settle its penalty dispute for the assessment year 2017-18 and withdraw the appeal, avoiding the need for prolonged litigation.

This case underscores the importance of the Vivad Se Vishwas Scheme as a tool for taxpayers to resolve disputes efficiently and with minimal financial burden. The scheme provides a practical solution for taxpayers facing penalties and other tax-related issues, offering a clear pathway to settlement and closure.

Final Tribunal Order

The final order, pronounced on July 6, 2022, by Accountant Member Shri Shamim Yahya and Judicial Member Shri N.K. Choudhry, officially dismissed the appeal filed by HPS Concrete as withdrawn. The tribunal’s decision marks the conclusion of the case, following the successful resolution of the penalty dispute under the Vivad Se Vishwas Scheme.

Order Pronounced in the Open Court on 6th July, 2022.

Judicial Member: N.K. Choudhry

Accountant Member: Shamim Yahya

HPS Concrete vs DCIT Central Circle, Ghaziabad: Withdrawal of Penalty Appeal Under Vivad Se Vishwas Scheme for AY 2017-18