Living Media India Ltd. vs. ACIT: Appeal Dismissal under Vivad Se Vishwas Scheme for AY 2016-17

Living Media India Ltd. vs. ACIT: Appeal Dismissal under Vivad Se Vishwas Scheme for AY 2016-17

Case Number: ITA 6295/DEL/2019

Appellant: Living Media India Ltd., New Delhi

Respondent: Assistant Commissioner of Income Tax (ACIT), Circle-15(2), New Delhi

Assessment Year: 2016-17

Order Type: Final Tribunal Order

Date of Order: March 31, 2023

Pronounced On: March 31, 2023

Case Filed On: July 26, 2019

Tribunal Bench: Delhi Bench E: New Delhi

Judges: Shri Anil Chaturvedi (Accountant Member) and Shri Narender Kumar Choudhary (Judicial Member)

Background of the Case

The appellant, Living Media India Ltd., filed appeals against the Income Tax Officer, ACIT, Circle-15(2), New Delhi, for the assessment years 2014-15, 2015-16, and 2016-17. The appeals were directed against the orders passed by the Commissioner of Income Tax (Appeals)-5, New Delhi, on February 27, 2019, and May 16, 2019. The primary issues in the appeals included disallowances under Section 43B and Section 14A of the Income Tax Act.

Reason for Filing the Appeal

The appeals were initiated by Living Media India Ltd. to contest the disallowances made by the Income Tax Department. The disallowances pertained to expenses claimed by the company, which the department had either rejected or reduced, affecting the company’s declared losses and tax liabilities for the respective assessment years.

Settlement under the Vivad Se Vishwas Scheme, 2020

During the pendency of the appeals, the Government of India introduced the Vivad Se Vishwas Scheme, 2020. This scheme aimed at reducing litigation and providing taxpayers with an opportunity to settle their disputes with the Income Tax Department. The scheme allowed taxpayers to resolve disputes by agreeing to pay a calculated amount, thereby receiving immunity from further litigation.

Living Media India Ltd. opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. The company filed the requisite Form 5, issued by the Department, indicating full and final settlement of the tax arrears for the disputed assessment years.

Dismissal of the Appeal

On March 31, 2023, during the hearing, the Authorized Representative for the company submitted that the disputes for the assessment years in question had been settled under the Vivad Se Vishwas Scheme. Consequently, the appeals were withdrawn, and the Tribunal dismissed the cases as resolved. This dismissal was made with the provision that the appeals could be reinstated if the settlement under the scheme did not conclusively resolve the disputes.

Final Order

The final order was delivered by Shri Anil Chaturvedi and Shri Narender Kumar Choudhary, who constituted the bench. The bench dismissed the appeals of Living Media India Ltd. for the assessment years 2014-15, 2015-16, and 2016-17 as withdrawn due to the settlements achieved under the Vivad Se Vishwas Scheme, 2020.

Conclusion

The case of Living Media India Ltd. vs. ACIT for the assessment year 2016-17 exemplifies the effectiveness of the Vivad Se Vishwas Scheme in resolving longstanding tax disputes. By opting for this scheme, the company was able to conclude disputes amicably without further litigation. The dismissal of the appeals under the scheme highlights its role in reducing the burden on both taxpayers and the judiciary, promoting a more efficient tax dispute resolution process. The success of the Vivad Se Vishwas Scheme in this case serves as a positive precedent for other companies and taxpayers facing similar disputes, underscoring the government’s commitment to simplifying the tax compliance process and reducing litigation.

Living Media India Ltd. vs. ACIT: Appeal Dismissal under Vivad Se Vishwas Scheme for AY 2016-17