This article provides an in-depth review of the Income Tax Appellate Tribunal’s decision in ITA No. 2078/DEL/2019, where DC Diamond Constellation Pvt Ltd, a company based in New Delhi, contested the assessment made by the Income Tax Officer, Ward-7(1), New Delhi, for the assessment year 2010-11. The appeal, filed on March 8, 2019, concluded with a final tribunal order on December 22, 2020.
The case began with the income tax return filed by DC Diamond Constellation Pvt Ltd for the assessment year 2010-11. The appellant challenged the assessment order passed by the ITO Ward-7(1), New Delhi. The case was escalated to the Commissioner of Income Tax (Appeals), New Delhi, whose order dated January 18, 2019, was subsequently contested by the appellant at the Income Tax Appellate Tribunal (ITAT).
The legal proceedings commenced with the filing of the appeal by DC Diamond Constellation Pvt Ltd against the assessment made by the ITO Ward-7(1). The appellant raised several grounds of appeal, challenging the assessment order and the conclusions drawn by the CIT(A). However, during the course of the appeal, the appellant opted for the Vivad Se Vishwas Scheme, 2020.
The appellant initially presented various grounds of appeal, including procedural lapses by the ITO and CIT(A), failure to adhere to principles of natural justice, and erroneous conclusions regarding the assessment. However, these grounds were not adjudicated due to the subsequent withdrawal of the appeal under the Vivad Se Vishwas Scheme.
On December 18, 2020, the appellant submitted a letter requesting the withdrawal of the appeal, citing the decision to settle the dispute relating to the tax arrears for the assessment year 2010-11 under the Vivad Se Vishwas Scheme, 2020. A certificate to this effect under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also filed by the appellant.
The tribunal, consisting of Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member, examined the request for withdrawal of the appeal. The tribunal acknowledged that the appellant had opted for the Vivad Se Vishwas Scheme and had provided the necessary certificate under Section 5(1) of the Act.
The tribunal noted that the respondent, represented by the Senior DR, had no objection to the withdrawal of the appeal. Consequently, the tribunal accepted the appellant’s request for withdrawal and dismissed the appeal as withdrawn.
This case illustrates the application of the Vivad Se Vishwas Scheme, 2020, as a mechanism to resolve tax disputes amicably. The tribunal’s decision to allow the withdrawal of the appeal highlights the scheme’s effectiveness in providing taxpayers with an opportunity to settle disputes and reduce litigation.
1. Income Tax Appellate Tribunal records.
2. Income Tax Act, 1961.
3. The Direct Tax Vivad Se Vishwas Act, 2020.
4. Relevant case laws and tribunal orders.
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