Indian Yamaha Motor Pvt. Ltd. Withdraws Appeal Under Vivad Se Vishwas Scheme for AY 2011-12

Case Overview: Indian Yamaha Motor Pvt. Ltd. vs. DCIT, Assessment Year 2011-12

The case of Indian Yamaha Motor Pvt. Ltd. vs. DCIT, LTU, Circle-1, New Delhi, related to the assessment year 2011-12, was presented before the Income Tax Appellate Tribunal (ITAT) Delhi Bench. The appeal was filed by Indian Yamaha Motor Pvt. Ltd. against the assessment order passed by the Deputy Commissioner of Income Tax (DCIT) for the said year. However, during the proceedings, the appellant decided to withdraw the appeal by opting for the Vivad Se Vishwas Scheme, 2020.

Background of the Case

Indian Yamaha Motor Pvt. Ltd., a prominent automotive company based in New Delhi, had filed an appeal against the assessment order passed by the DCIT, LTU, Circle-1, New Delhi. The order in question pertained to certain tax arrears and disputes arising from the assessment for the year 2011-12. The company, seeking to resolve the dispute, later chose to avail the benefits of the Vivad Se Vishwas Scheme, 2020, which was introduced by the Government of India as a tax dispute resolution mechanism.

The Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme, 2020, was launched to provide a resolution framework for pending direct tax disputes. The scheme allowed taxpayers to settle their disputes by paying a percentage of the disputed tax amount while receiving a waiver on interest and penalties. This scheme was part of the government’s broader strategy to reduce litigation and streamline the tax system by encouraging the resolution of longstanding disputes.

In the present case, Indian Yamaha Motor Pvt. Ltd. decided to settle its ongoing tax dispute for the assessment years 2011-12 and 2012-13 under this scheme. The company believed that resolving the dispute through this mechanism would be more beneficial than prolonged litigation, allowing them to focus on their business operations without the cloud of unresolved tax issues.

Request for Withdrawal

On January 20, 2021, the legal representative for Indian Yamaha Motor Pvt. Ltd. submitted a letter to the ITAT, requesting the withdrawal of the appeals for both the assessment years 2011-12 and 2012-13. The letter, received via email, indicated that the company had opted to settle the disputes under the Vivad Se Vishwas Scheme, 2020. Along with the letter, a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also filed to confirm the settlement.

The matter was brought before the ITAT Delhi Bench on January 22, 2021, during a virtual hearing. The bench was presided over by Vice President Shri G.S. Pannu and Judicial Member Shri Sudhanshu Srivastava. The Senior Departmental Representative (DR), Shri M. Barnwal, representing the Income Tax Department, raised no objection to the withdrawal of the appeals.

Tribunal’s Decision

After considering the request for withdrawal and acknowledging the appellant’s decision to settle the disputes under the Vivad Se Vishwas Scheme, the ITAT Delhi Bench accepted the withdrawal. The tribunal observed that since the appellant had chosen to resolve the matter through the scheme, there was no further need to proceed with the appeals.

As a result, the tribunal dismissed both appeals filed by Indian Yamaha Motor Pvt. Ltd. The decision was announced at the conclusion of the virtual hearing on January 22, 2021.

Conclusion

The withdrawal of the appeals by Indian Yamaha Motor Pvt. Ltd. under the Vivad Se Vishwas Scheme, 2020, underscores the utility of this scheme in providing an effective resolution to tax disputes. By opting for the scheme, the company successfully settled its tax arrears for the assessment years 2011-12 and 2012-13, avoiding the uncertainties and costs associated with prolonged litigation.

This case also highlights the importance of such alternative dispute resolution mechanisms in the Indian tax system. The Vivad Se Vishwas Scheme, 2020, has proven to be a significant tool for taxpayers looking to resolve disputes amicably and efficiently, thereby enabling them to focus on their core business activities without the burden of unresolved tax issues.

Indian Yamaha Motor Pvt. Ltd. Withdraws Appeal Under Vivad Se Vishwas Scheme for AY 2011-12