Jullundur Motor Agency Pvt. Ltd. vs. ACIT: Settlement of Tax Dispute under Vivad Se Vishwas Scheme for AY 2005-06

Jullundur Motor Agency Pvt. Ltd. vs. ACIT: Settlement of Tax Dispute under Vivad Se Vishwas Scheme for AY 2005-06

Case Number: ITA 6722/DEL/2019

Appellant: Jullundur Motor Agency (Delhi) Pvt. Ltd., Delhi

Respondent: ACIT, Circle- 13(2), New Delhi

Assessment Year: 2005-06

Result: Appeal withdrawn

Order Type: Final Tribunal Order

Date of Order: 8th January 2021

Background of the Case

The case involves Jullundur Motor Agency (Delhi) Pvt. Ltd., which filed an appeal against the order of the CIT(A), New Delhi concerning the assessment year 2005-06. The appeal pertained to disputes over tax arrears which the appellant decided to settle under the Direct Tax Vivad Se Vishwas Act, 2020.

Details of the Appeal

The appeal was initially directed against the CIT(A) order dated 27th May 2019. However, before the proceedings could conclude, the assessee opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. A formal certificate under Section 5(1) of the act was submitted to the tribunal, indicating the assessee’s intention to withdraw the appeal in light of the settlement.

Decision of the Tribunal

The hearing was conducted via video conferencing on 8th January 2021, presided over by Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member of the ITAT. After reviewing the submissions and the certificate provided under the Vivad Se Vishwas Scheme, the tribunal accepted the assessee’s request to withdraw the appeal.

Learned Senior DR representing the tax authorities raised no objection to the withdrawal. Consequently, the tribunal dismissed the appeals as withdrawn, concluding the proceedings with the assessee settling the tax dispute outside of the traditional litigation framework.

Significance of the Decision

This case highlights the applicability of the Vivad Se Vishwas Scheme as an effective alternative to prolonged litigation in tax disputes. It underscores the government’s initiative to reduce pending litigations and provide a straightforward mechanism for settling tax disputes. The withdrawal of the appeal by Jullundur Motor Agency Pvt. Ltd. serves as a precedent for other entities considering similar settlements under this scheme.

The decision also reflects the tribunal’s support for dispute resolution initiatives that expedite fair settlements and reduce the burden on the judiciary.

Jullundur Motor Agency Pvt. Ltd. vs. ACIT: Settlement of Tax Dispute under Vivad Se Vishwas Scheme for AY 2005-06