Narender Jindal vs ITO Ward-63(3), New Delhi – Vivad Se Vishwas Case – ITA 6339/DEL/2019

Case Analysis: Narender Jindal vs ITO Ward-63(3), New Delhi – ITA 6339/DEL/2019

Case Number: ITA 6339/DEL/2019

Appellant: Narender Jindal, Delhi

Respondent: ITO Ward-63(3), New Delhi

Assessment Year: 2007-08

Order Type: Final Tribunal Order

Date of Order: 29th November 2022

Pronounced on: 29th November 2022

Case Filed On: 29th July 2019

Background of the Case

The case of Narender Jindal vs ITO Ward-63(3), New Delhi pertains to the assessment year 2007-08. Narender Jindal, the appellant, challenged the order passed by the Commissioner of Income Tax (Appeals) – 20, New Delhi, dated 25th February 2019. The appellant had filed an appeal before the Income Tax Appellate Tribunal (ITAT) to seek relief from the order issued by the tax authorities.

Why the Case Was Filed

Narender Jindal filed this appeal in response to the tax assessments and related issues for the financial year 2007-08. The appellant contested the tax demands raised by the Income Tax Officer, Ward-63(3), New Delhi, arguing that the assessments were not in line with the provisions of the Income Tax Act, 1961. The dispute primarily revolved around certain income tax liabilities that the appellant believed were wrongly assessed.

This case exemplifies the legal recourse available to taxpayers who seek to challenge tax assessments that they consider unjust or erroneous. By filing an appeal before the ITAT, the appellant aimed to overturn or mitigate the tax liabilities imposed by the lower tax authorities.

Vivad Se Vishwas Scheme 2020

During the pendency of this appeal, the Government of India introduced the Vivad Se Vishwas Scheme in 2020. This scheme was designed to resolve long-standing tax disputes by allowing taxpayers to settle their cases with the tax authorities by paying a specified percentage of the disputed tax. The objective of the scheme was to reduce litigation and facilitate quicker resolution of tax disputes.

Recognizing the benefits of the Vivad Se Vishwas Scheme, Narender Jindal opted to participate in the scheme. The appellant filed the necessary forms under the scheme, including Form 1 and Form 2, to declare the disputed tax amount and undertake the payment as per the scheme’s provisions. Subsequently, the designated authority issued Form 5, confirming the settlement of the tax dispute.

Tribunal Proceedings

The appeal was heard by the Delhi Bench ‘E’ of the Income Tax Appellate Tribunal (ITAT), with the bench comprising Dr. B. R. R. Kumar, Accountant Member, and Sh. Yogesh Kumar US, Judicial Member. The hearing took place on 28th November 2022, and the case was heard through virtual proceedings due to the ongoing pandemic restrictions.

During the hearing, the Senior Departmental Representative (DR), Sh. Amit Shukla, informed the tribunal that the appellant, Narender Jindal, had opted for the Vivad Se Vishwas Scheme, 2020. The DR further confirmed that the appellant had completed the required formalities, including the submission of Forms 1, 2, and 5, indicating the resolution of the tax dispute under the scheme.

Given that the tax dispute had been settled under the Vivad Se Vishwas Scheme, the appellant’s representative requested the withdrawal of the appeal. The tribunal acknowledged that the appellant had exercised the option to resolve the dispute through the scheme and noted that no further adjudication was necessary.

Tribunal’s Decision

After considering the submissions made by both the appellant’s representative and the Senior Departmental Representative, the tribunal decided to dismiss the appeal as infructuous. The tribunal’s order stated that since the tax dispute had been settled under the Vivad Se Vishwas Scheme, the appeal no longer had any merit for continuation.

The tribunal’s decision was pronounced in the open court on 29th November 2022, immediately following the conclusion of the virtual hearing. The order, signed by both the Judicial Member, Sh. Yogesh Kumar US, and the Accountant Member, Dr. B. R. R. Kumar, reflected the resolution of the case under the Vivad Se Vishwas Scheme.

Final Judgment

In conclusion, the tribunal dismissed the appeal filed by Narender Jindal as infructuous after the appellant opted for the Vivad Se Vishwas Scheme, 2020. This case highlights the efficacy of the Vivad Se Vishwas Scheme in providing a viable mechanism for taxpayers to resolve their tax disputes amicably and efficiently, thereby reducing the burden of prolonged litigation.

The tribunal’s order serves as a precedent for other taxpayers who may be considering the Vivad Se Vishwas Scheme as a means to settle their tax disputes. It underscores the importance of government-initiated schemes in promoting the resolution of tax disputes and facilitating smoother tax administration.

Overall, this case is a reminder of the benefits that schemes like Vivad Se Vishwas offer to taxpayers and tax practitioners alike, enabling them to resolve their tax issues without resorting to extended legal battles.

Narender Jindal vs ITO Ward-63(3), New Delhi – Vivad Se Vishwas Case – ITA 6339/DEL/2019