ITA 5983/DEL/2019: DCIT, Circle-1, LTU, New Delhi vs. Rural Electrification Corporation Ltd. – Appeal Withdrawn Under Vivad Se Vishwas Scheme for AY 2014-15

Final Tribunal Order in ITA 5983/DEL/2019: DCIT, Circle-1, LTU, New Delhi vs. Rural Electrification Corporation Ltd., New Delhi

Case Number: ITA 5983/DEL/2019

Appellant: DCIT, Circle-1, LTU, New Delhi

Respondent: Rural Electrification Corporation Ltd., New Delhi

Assessment Year: 2014-15

Order Type: Final Tribunal Order

Date of Order: 2022-06-15

Pronounced On: 2022-06-15

Introduction:

This case involves an appeal filed by the Deputy Commissioner of Income Tax (DCIT), Circle-1, LTU, New Delhi, against Rural Electrification Corporation Ltd. for the assessment year 2014-15. The appeal was heard and decided by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘F’, which comprised of Accountant Member Shri Anil Chaturvedi and Judicial Member Shri N.K. Choudhry.

Background:

The appeal was initially filed by the Revenue challenging the order passed by the Commissioner of Income Tax (Appeals)-22, New Delhi, dated 30.04.2019. However, during the pendency of the appeal, the respondent, Rural Electrification Corporation Ltd., opted for the Direct Tax Vivad Se Vishwas Scheme, 2020, introduced by the Government of India. This scheme allows taxpayers to settle their tax disputes by paying the disputed tax amount, thereby avoiding protracted litigation.

On 13.06.2022, the respondent filed an application with the ITAT, indicating that it had availed of the immunity under the Vivad Se Vishwas Scheme and that the Income Tax Department had issued Form No. 5, confirming the settlement. In light of this development, the respondent requested the Tribunal to dismiss the appeal as withdrawn.

Discussion:

The Vivad Se Vishwas Scheme was introduced by the Government of India as part of its efforts to reduce pending litigation in direct taxes. Under this scheme, taxpayers were given an opportunity to settle their disputes by paying a specified percentage of the disputed tax and were granted immunity from interest, penalties, and prosecution.

In this case, Rural Electrification Corporation Ltd. opted for the scheme and successfully settled its dispute with the Income Tax Department. As a result, the appeal filed by the Revenue became infructuous, as there was no longer a dispute to adjudicate.

During the hearing on 13.06.2022, the Departmental Representative (DR) did not contest the facts presented by the respondent. The Tribunal, therefore, took note of the application filed by the respondent and the issuance of Form No. 5 by the Department, which confirmed that the dispute had been settled under the Vivad Se Vishwas Scheme.

Tribunal’s Decision:

Considering the facts of the case and the application for withdrawal of the appeal, the ITAT concluded that the appeal by the Revenue was liable to be dismissed as withdrawn. The Tribunal noted that since the respondent had availed of the Vivad Se Vishwas Scheme and the Department had issued Form No. 5, there was no remaining controversy to be adjudicated upon.

The ITAT, therefore, ordered the dismissal of the appeal filed by the DCIT, Circle-1, LTU, New Delhi, against Rural Electrification Corporation Ltd. The Tribunal’s order was pronounced in the open court on 15th June 2022.

Conclusion:

The dismissal of the appeal in ITA 5983/DEL/2019 underscores the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for the scheme, Rural Electrification Corporation Ltd. was able to settle its dispute with the Income Tax Department, thereby avoiding further litigation. The Tribunal’s decision to dismiss the appeal as withdrawn is in line with the objectives of the scheme, which aims to reduce the backlog of tax litigation and provide relief to taxpayers.

This case serves as an example of how the Vivad Se Vishwas Scheme can be used by taxpayers to settle their disputes amicably and efficiently, allowing them to focus on their business activities without the burden of ongoing tax litigation.

Final Judgment:

The appeal filed by the DCIT, Circle-1, LTU, New Delhi, against Rural Electrification Corporation Ltd., New Delhi, for the assessment year 2014-15, is dismissed as withdrawn under the Vivad Se Vishwas Scheme.

Order Pronounced: 15th June 2022

Judges: Shri Anil Chaturvedi (Accountant Member) and Shri N.K. Choudhry (Judicial Member)

Reference: INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH “F”, NEW DELHI

ITA 5983/DEL/2019: DCIT, Circle-1, LTU, New Delhi vs. Rural Electrification Corporation Ltd. – Appeal Withdrawn Under Vivad Se Vishwas Scheme for AY 2014-15