An examination of ITA No. 1078/Del/2020, where PMC Fincorp Limited, formerly known as Priti Mercantile Co. Ltd, opted for a legal settlement of its tax disputes under the Vivad Se Vishwas Scheme for the assessment year 2011-12.
The case was brought before the Income Tax Appellate Tribunal, Delhi Bench ‘D’. The dispute involved assessments made by the Deputy Commissioner of Income Tax, Circle-I, Moradabad against PMC Fincorp Limited.
The proceedings were conducted through video conferencing. At the time of the hearing, no representatives appeared on behalf of PMC Fincorp Limited. Instead, an email dated February 23, 2021, was sent to the tribunal expressing the company’s desire to withdraw the appeal in favor of settling under the Vivad Se Vishwas Act, 2020.
The tribunal, after receiving no objections from the Senior Departmental Representative, accepted the withdrawal request. The formal closure of the appeal underlines the practical utility of the Vivad Se Vishwas Scheme in resolving longstanding tax disputes.
This case highlights the effectiveness of alternative dispute resolution mechanisms in tax matters, particularly the Vivad Se Vishwas Scheme, which aims to reduce litigation in direct taxes. It serves as a significant example for other corporations and entities facing similar disputes, offering a pathway to amicable settlements and legal closure without prolonged litigation.
ITA 1078/DEL/2020: PMC Fincorp Limited’s Tax Dispute Settlement under Vivad Se Vishwas
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