On February 20, 2020, Asha Devi Khetan of New Delhi filed an appeal against the order dated December 23, 2019, passed by the Commissioner of Income-tax (Appeals) [CIT(A)], Delhi-35. The case pertained to the assessment year 2015-16 and involved a tax dispute with the Income Tax Officer (ITO), Ward-58(2), New Delhi. The original assessment order was issued for the assessment year 2015-16. The appeal was heard and subsequently withdrawn on September 29, 2021, as the appellant opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020.
Appellant: Asha Devi Khetan, New Delhi
Respondent: ITO, Ward-58(2), New Delhi
Assessment Year: 2015-16
Case Filed On: February 20, 2020
Order Type: Final Tribunal Order
Date of Order: September 29, 2021
Date of Pronouncement: September 29, 2021
The appellant did not appear for the hearing, and the respondent was represented by Shri Gaurav Pundir, Senior Departmental Representative (DR).
Asha Devi Khetan was assessed for the assessment year 2015-16, and certain tax arrears were identified by the Income Tax Officer, Ward-58(2), New Delhi. The appellant contested these arrears and filed an appeal with the CIT(A), Delhi-35, which was decided on December 23, 2019. Unsatisfied with the CIT(A)’s decision, Asha Devi Khetan filed a further appeal with the Income Tax Appellate Tribunal (ITAT), Delhi Benches ‘E’.
The specific grounds for appeal involved contesting the tax arrears and seeking relief from the assessment order issued by the ITO, Ward-58(2), New Delhi. However, before the appeal could be fully adjudicated, Asha Devi Khetan opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020, which aims to resolve pending tax disputes through a simplified settlement mechanism.
The Vivad Se Vishwas Scheme, introduced by the Government of India, aims to reduce litigation and settle tax disputes efficiently. Under this scheme, taxpayers can pay the disputed tax amount and get a waiver of interest and penalties. Asha Devi Khetan decided to take advantage of this scheme to settle her tax arrears for the assessment year 2015-16.
On September 29, 2021, the appellant submitted a letter requesting the withdrawal of the appeal, citing their decision to settle the dispute under the Vivad Se Vishwas Scheme. During the hearing on September 29, 2021, the Senior Departmental Representative raised no objections, and the tribunal accepted the withdrawal request.
The case was heard on September 29, 2021, via video conferencing by a bench comprising Shri R.K. Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member. After considering the withdrawal request, the tribunal accepted the appellant’s request and dismissed the appeal as withdrawn.
The tribunal noted the following in its order:
This appeal filed by the Assessee is directed against the order dated 23.12.2019 of the Ld. CIT(A), Delhi-35, relating to the A.Y. 2015-2016.
None appeared on behalf of the assessee. However, an application has been filed by the assessee requesting to allow the assessee to withdraw the appeal on the ground that assessee has opted for VIVAD SE VISHWAS SCHEME, 2020 and the PCIT, Delhi-20 has issued Form No.3 under the said Act.
In view of the above and in the absence of any objection from the side of the Ld. D.R, the request of the assessee for withdrawal of the appeal is allowed and the appeal of the assessee is dismissed as withdrawn.
Order pronounced in the open Court at the time of hearing itself i.e., on 29.09.2021.
The decision in ITA No.868/DEL/2020 highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for this scheme, Asha Devi Khetan was able to settle her tax arrears efficiently, avoiding prolonged litigation. This case serves as a precedent for other taxpayers considering the scheme to resolve their tax disputes.
This case has broader implications for businesses and tax professionals, particularly regarding the utilization of the Vivad Se Vishwas Scheme to settle tax disputes. The key takeaways include:
This section provides a detailed analysis of the judicial precedents and legal principles related to the case, particularly focusing on the utilization and effectiveness of settlement schemes like Vivad Se Vishwas.
The Vivad Se Vishwas Scheme embodies the principle of efficient dispute resolution, aiming to reduce the burden of litigation on both taxpayers and tax authorities. By providing a streamlined mechanism for settling disputes, the scheme encourages voluntary compliance and timely resolution of tax issues.
Various legal precedents support the utilization of settlement schemes to resolve tax disputes. These precedents emphasize the importance of reducing litigation and fostering a cooperative relationship between taxpayers and tax authorities. Courts have often highlighted the benefits of settlement schemes in achieving these objectives.
Analyzing similar cases where taxpayers opted for settlement schemes can provide valuable insights into the benefits and challenges of such schemes. Case studies can illustrate how different taxpayers have leveraged these schemes to resolve their disputes and the outcomes they achieved.
The case of ITA No.868/DEL/2020 serves as an important example of how individuals can utilize settlement schemes like Vivad Se Vishwas to resolve tax disputes efficiently. Taxpayers and tax professionals should stay informed about such schemes and consider their benefits when facing tax disputes. By maintaining compliance, thorough documentation, and evaluating strategic options, taxpayers can effectively manage and resolve their tax issues.
ITA No.868/DEL/2020: Asha Devi Khetan Settles Tax Dispute Under Vivad Se Vishwas Scheme
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