This article provides an in-depth analysis of the case ITA No. 4791/DEL/2019, where the appellant, Minerals Management Services India Pvt. Ltd., New Delhi, filed an appeal against the DCIT, Circle-16(2), New Delhi, for the assessment year 2013-14. The appeal was filed on May 27, 2019, and the final tribunal order was pronounced on March 12, 2021.
Minerals Management Services India Pvt. Ltd. had a dispute with the Income Tax Department regarding tax arrears for the assessment year 2013-14. To resolve the dispute, the company opted to settle under the Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the government to reduce pending litigation and provide a mechanism for taxpayers to settle their disputes with certain benefits and concessions.
The appellant, represented by Sh. Sanat Kapoor, Advocate, initially filed an appeal against the order of the learned CIT(A)-6, New Delhi, dated March 27, 2019. However, during the proceedings, the appellant decided to withdraw the appeal and take advantage of the Vivad Se Vishwas Scheme.
On February 26, 2021, the learned counsel for the appellant submitted a letter requesting the withdrawal of the appeal. The letter stated that the company had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also submitted as evidence of this decision.
The learned Senior DR, Sh. M. Baranwal, had no objection to the appellant’s request for withdrawal of the appeal. This lack of objection facilitated the acceptance of the withdrawal request by the tribunal.
The tribunal, comprising Vice President Shri G.S. Pannu and Judicial Member Shri K. Narasimha Chary, reviewed the request for withdrawal. Considering the appellant’s decision to settle the dispute under the Vivad Se Vishwas Scheme and the lack of objection from the department, the tribunal accepted the request for withdrawal of the appeal.
The order stated: “In view of the above, we accept the request of the assessee for withdrawal of the appeal. In the result, the appeal of the assessee is dismissed as withdrawn.”
The decision was announced on March 12, 2021, during the virtual hearing in the presence of both parties. The tribunal’s order was signed by both Vice President Shri G.S. Pannu and Judicial Member Shri K. Narasimha Chary.
This case highlights the practical application of the Vivad Se Vishwas Scheme, 2020, which aims to reduce litigation and provide a resolution mechanism for pending tax disputes. By opting for this scheme, Minerals Management Services India Pvt. Ltd. was able to settle its tax arrears dispute for the assessment year 2013-14, leading to the withdrawal of its appeal.
The successful withdrawal of the appeal under the Vivad Se Vishwas Scheme demonstrates the effectiveness of the scheme in resolving tax disputes amicably. It also underscores the importance of such schemes in reducing the burden of litigation on both taxpayers and the Income Tax Department.
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