This analysis details ITA No. 38/Del/2019, involving Golden Century Food Products Pvt. Ltd. against the ITO, Ward-10(2), New Delhi, for the assessment year 2012-13. The focus is on the withdrawal of the appeal due to the company’s decision to resolve the dispute under the Vivad Se Vishwas Scheme (VSV) 2020.
The company filed an appeal against the order of the Commissioner of Income Tax (Appeals), New Delhi, dated 29.10.2018. However, in pursuit of a less contentious resolution, the company opted into the Vivad Se Vishwas Scheme, a government initiative aimed at reducing litigation in direct taxes.
On November 20, 2020, during a virtual hearing, the company submitted that it had opted for VSV 2020 by filing the necessary forms. The tribunal acknowledged the withdrawal of the appeal, with provisions that allow the company to reinstate the appeal should the resolution under the Act not reach a final settlement.
This case underscores the effectiveness of alternative dispute resolution methods in tax disputes, potentially setting a precedent for other corporations to follow similar paths to resolve tax-related conflicts. The decision highlights the tribunal’s flexibility in accommodating such resolutions, reflecting a broader shift towards reducing judicial burdens through policy-driven schemes.
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