Jay Metal Industries P Ltd. vs ITO, Ward-13(3) – Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2012-13

Case Overview: Jay Metal Industries P Ltd. vs ITO, Ward-13(3), Assessment Year 2012-13

This case involves Jay Metal Industries P Ltd., a New Delhi-based company, which filed an appeal against the order of the Commissioner of Income Tax (Appeals)-5, New Delhi, for the assessment year 2012-13. The appeal was later withdrawn as the appellant opted to settle the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020.

Background

Jay Metal Industries P Ltd., the appellant, had filed its income tax return for the assessment year 2012-13. During the assessment process, the Assessing Officer (AO) made certain additions and disallowances to the company’s income, which the appellant challenged by filing an appeal with the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) upheld the AO’s findings, leading the appellant to file a further appeal with the Income Tax Appellate Tribunal (ITAT).

While the appeal was pending before the ITAT, the appellant decided to resolve the dispute through the Direct Tax Vivad Se Vishwas Scheme, 2020. This scheme, introduced by the government, aimed to reduce litigation by allowing taxpayers to settle their disputes with the Income Tax Department by paying a specified amount, depending on the nature and stage of the dispute.

Direct Tax Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme was a landmark initiative by the Government of India, designed to provide a one-time opportunity for taxpayers to settle their pending tax disputes. By opting for this scheme, taxpayers could resolve disputes by paying a reduced tax liability, thereby avoiding prolonged litigation and the associated costs.

Proceedings and Withdrawal of Appeal

During the hearing before the ITAT on 15th June 2022, the Authorized Representative for Jay Metal Industries P Ltd., Shri Tarun Chanana, Advocate, sought permission to withdraw the appeal. The request was based on the fact that the company had opted for the Vivad Se Vishwas Scheme and had settled the tax dispute under this scheme.

The Senior Departmental Representative (DR), Ms. Anupama Singla, raised no objections to the withdrawal of the appeal, acknowledging that the case had been settled through the scheme and that Form No. 5, indicating the final settlement, had been issued by the department.

Tribunal’s Decision

After considering the submissions and the settlement under the Vivad Se Vishwas Scheme, the ITAT accepted the request for withdrawal. The appeal was dismissed as withdrawn. The final order was pronounced on 15th June 2022.

Conclusion

This case exemplifies the success of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for the scheme, Jay Metal Industries P Ltd. was able to settle the pending litigation efficiently, avoiding further legal proceedings and potential penalties.

The Vivad Se Vishwas Scheme has been instrumental in reducing the backlog of cases in various judicial forums, including the Income Tax Appellate Tribunal. It has provided taxpayers with a practical solution to resolve their disputes, thereby promoting a more compliant and dispute-free tax environment.

In conclusion, the withdrawal of the appeal under the Vivad Se Vishwas Scheme allowed Jay Metal Industries P Ltd. to achieve a swift resolution to their tax dispute for the assessment year 2012-13. This case highlights the effectiveness of alternative dispute resolution mechanisms in tax administration and the benefits they offer to both taxpayers and the government.

Jay Metal Industries P Ltd. vs ITO, Ward-13(3) – Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2012-13