This case involves Manoj Singhal, a resident of New Delhi, who filed an appeal against the order of the Commissioner of Income Tax (Appeals)-12, New Delhi, related to the assessment year 2016-17. The appellant decided to settle the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020, leading to the withdrawal of the appeal.
Manoj Singhal, the appellant, filed his return of income for the assessment year 2016-17, which was later scrutinized by the Assessing Officer (AO) under the provisions of the Income Tax Act, 1961. Dissatisfied with certain additions and disallowances made by the AO, the appellant appealed to the Commissioner of Income Tax (Appeals) [CIT(A)]. However, during the pendency of the appeal, the appellant opted to resolve the dispute through the Vivad Se Vishwas Scheme.
The Vivad Se Vishwas Scheme, introduced by the Government of India in 2020, aimed to resolve pending tax disputes and reduce litigation. Under this scheme, taxpayers could settle their disputes by paying a specified percentage of the disputed tax amount. The scheme provided a quick resolution mechanism, encouraging taxpayers to clear their tax liabilities and reduce the burden of prolonged litigation.
During the hearing, the appellant’s counsel submitted an application stating that the appellant had opted for the Vivad Se Vishwas Scheme and had received Form No. 5, indicating the final settlement of the tax arrears under the scheme. The counsel requested the Tribunal to allow the withdrawal of the appeal, as the dispute had been resolved under the scheme.
The Departmental Representative (DR) raised no objection to the withdrawal of the appeal, acknowledging that the case had been settled through the scheme and that Form No. 5 had been issued.
The Income Tax Appellate Tribunal (ITAT), after considering the facts and submissions, noted that the appellant had successfully settled the tax dispute under the Vivad Se Vishwas Scheme. Given that Form No. 5 had been issued by the department, confirming the settlement, the Tribunal allowed the appeal to be withdrawn.
As a result, the Tribunal dismissed the appeal as withdrawn. The final order was pronounced on 1st September 2022.
This case highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving pending tax disputes. By opting for the scheme, Manoj Singhal was able to settle the dispute efficiently, avoiding further litigation and potential penalties. The Tribunal’s decision to allow the withdrawal of the appeal underscores the importance of alternative dispute resolution mechanisms in the tax administration system.
The Vivad Se Vishwas Scheme has been a significant step toward reducing the burden of tax litigation in India, offering taxpayers a straightforward path to resolve disputes and achieve tax compliance.
In conclusion, this case serves as an example of how the Vivad Se Vishwas Scheme can be utilized by taxpayers to settle disputes amicably and avoid prolonged litigation.
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