The Income Tax Appellate Tribunal’s decision in ITA No. 3749/DEL/2019 represents a significant case where the appellant, Sanjay Jain HUF from Delhi, opted to resolve a tax dispute under the Vivad Se Vishwas Scheme, 2020. This case illustrates the scheme’s effectiveness in providing an alternative resolution mechanism for pending tax litigation.
Sanjay Jain HUF was assessed by the Income Tax Officer (ITO), Ward-34(3), New Delhi, for the assessment year 2015-16. The initial dispute arose from the assessment order, which was subsequently challenged before the CIT(A)-12, New Delhi. The CIT(A) rendered a decision on January 25, 2019, which did not fully satisfy the assessee, prompting an appeal to the Income Tax Appellate Tribunal on April 29, 2019.
The hearing for this case was conducted on April 15, 2021, via video conferencing due to the ongoing pandemic. The bench consisted of Vice President Shri G.S. Pannu and Judicial Member Shri Kul Bharat. During the proceedings, the counsel for the assessee, Sh. Satymev Sabarn, submitted a letter dated March 25, 2021, requesting the withdrawal of the appeal. The letter stated that the assessee had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020, and had obtained a certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020.
The tribunal accepted the withdrawal request, noting no objections from the Senior Departmental Representative, Shri R.K. Gupta. Consequently, the appeal was dismissed. The order was pronounced on April 15, 2021, during the virtual hearing, marking the conclusion of the case.
The case of ITA 3749/DEL/2019 demonstrates the practical application of the Vivad Se Vishwas Scheme. This scheme, introduced by the Indian government, aims to reduce litigation by allowing taxpayers to settle disputes by paying the disputed tax amount and receiving immunity from interest and penalties. It offers a streamlined resolution process that benefits both the taxpayers and the judicial system.
The appellant, Sanjay Jain HUF, initially contested the assessment made by the ITO, Ward-34(3), New Delhi, which led to an appeal to the CIT(A). After receiving an unsatisfactory decision from the CIT(A) on January 25, 2019, the appellant escalated the matter to the Income Tax Appellate Tribunal on April 29, 2019.
During the tribunal hearing on April 15, 2021, the appellant’s counsel presented a withdrawal application, citing the decision to settle the dispute under the Vivad Se Vishwas Scheme. The submission of the certificate under Section 5(1) confirmed the completion of necessary formalities for the settlement.
The tribunal, composed of Vice President Shri G.S. Pannu and Judicial Member Shri Kul Bharat, acknowledged the withdrawal request. With no objections from the department’s representative, Shri R.K. Gupta, the tribunal allowed the appeal to be withdrawn and dismissed it.
This case highlights the strategic use of the Vivad Se Vishwas Scheme by taxpayers to avoid prolonged litigation. The scheme provides an opportunity for taxpayers to resolve disputes efficiently, thereby reducing the burden on judicial resources and facilitating faster resolutions.
In conclusion, the decision in ITA 3749/DEL/2019 underscores the effectiveness of the Vivad Se Vishwas Scheme in reducing litigation and providing a streamlined resolution process for tax disputes. The tribunal’s acceptance of the withdrawal application and the subsequent dismissal of the appeal illustrate the scheme’s practical utility in achieving timely and amicable settlements.
The case of ITA 3749/DEL/2019 serves as a testament to the positive impact of the Vivad Se Vishwas Scheme on the Indian tax litigation landscape. By opting for this scheme, Sanjay Jain HUF efficiently resolved the tax dispute with ITO, Ward-34(3), New Delhi, for the assessment year 2015-16. This case exemplifies how government initiatives can facilitate dispute resolution, benefiting both the taxpayers and the judicial system.
ITA 3749/DEL/2019: Settlement of Assessment Year 2015-16 Under Vivad Se Vishwas
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