Naresh Mittal (HUF) vs. ITO: Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2015-16

Naresh Mittal (HUF) vs. ITO: Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2015-16

Case Number: ITA 6285/DEL/2019

Appellant: Naresh Mittal (HUF), New Delhi

Respondent: Income Tax Officer, Ward-40(4), New Delhi

Assessment Year: 2015-16

Order Type: Final Tribunal Order

Date of Order: March 12, 2021

Pronounced On: March 12, 2021

Case Filed On: July 26, 2019

Tribunal Bench: Delhi Bench A: New Delhi (Through Video Conferencing)

Judges: Shri G.S. Pannu (Vice President) and Shri K. Narasimha Chary (Judicial Member)

Background of the Case

The appellant, Naresh Mittal (HUF), filed an appeal against the Income Tax Officer, Ward-40(4), New Delhi, for the assessment year 2015-16. The appeal was directed against the order passed by the learned CIT(A)-14, New Delhi, on June 12, 2019. The case involved the assessment proceedings related to certain tax arrears.

Reason for Filing the Appeal

The appeal was originally filed by Naresh Mittal (HUF) to contest the tax demands and related issues raised by the Income Tax Department for the assessment year 2015-16. The primary objective of the appeal was to seek relief from the alleged tax liabilities that were imposed as per the assessment order.

Settlement under the Vivad Se Vishwas Scheme, 2020

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme, 2020, a direct tax dispute resolution scheme aimed at reducing litigation and providing relief to taxpayers. Under this scheme, taxpayers were given an opportunity to settle their disputes with the Income Tax Department by paying a percentage of the disputed tax amount and obtaining immunity from further litigation.

Naresh Mittal (HUF) 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 filed by the appellant, confirming that the tax arrears related to the assessment year 2015-16 were settled under the scheme.

Withdrawal of the Appeal

On March 12, 2021, during the hearing of the case, the learned counsel for the assessee, Sh. Nippun Mittal, CA, requested the withdrawal of the appeal on behalf of Naresh Mittal (HUF). The request was made in light of the settlement reached under the Vivad Se Vishwas Scheme. The counsel for the respondent, Sh. M. Baranwal, Sr. DR, had no objection to the withdrawal of the appeal.

In view of the request for withdrawal, the Income Tax Appellate Tribunal (ITAT) accepted the appeal’s withdrawal and dismissed it as withdrawn. The decision was announced in the presence of both sides on the conclusion of the virtual hearing on March 12, 2021.

Final Order

The final order was pronounced by Shri G.S. Pannu, Vice President, and Shri K. Narasimha Chary, Judicial Member, who constituted the bench. The order concluded that the appeal filed by Naresh Mittal (HUF) for the assessment year 2015-16 was dismissed as withdrawn, following the successful resolution of the tax dispute under the Vivad Se Vishwas Scheme, 2020.

This decision marks the conclusion of the litigation process for the appellant, providing them relief and closure on the matter for the assessment year in question.

Conclusion

The case of Naresh Mittal (HUF) vs. ITO for the assessment year 2015-16 is an example of how the Vivad Se Vishwas Scheme, 2020, has played a crucial role in resolving tax disputes efficiently. By opting for the scheme, the appellant not only avoided prolonged litigation but also ensured a favorable resolution of the tax arrears. The withdrawal of the appeal under this scheme reflects the positive impact of such initiatives in reducing the burden on both taxpayers and the judicial system.

The ITAT’s acceptance of the withdrawal request and dismissal of the appeal as withdrawn further underscores the effectiveness of the Vivad Se Vishwas Scheme in bringing about an amicable resolution to tax disputes.

This case serves as a precedent for other taxpayers who are considering settling their tax disputes under similar schemes, offering them a pathway to resolve issues without the need for lengthy and expensive litigation.

Overall, the Vivad Se Vishwas Scheme has proven to be an instrumental tool in facilitating the resolution of tax disputes, providing relief to taxpayers, and contributing to a more streamlined and efficient tax administration system.

The withdrawal of the appeal in the case of Naresh Mittal (HUF) highlights the success of the scheme in achieving its objectives and providing taxpayers with a viable option for dispute resolution.

Naresh Mittal (HUF) vs. ITO: Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2015-16