Navel Kishore Gupta vs ACIT – Appeal Dismissed as Infructuous Due to Vivad Se Vishwas Scheme for AY 2010-11

Case Overview: Navel Kishore Gupta vs ACIT – AY 2010-11

This article examines the case of Navel Kishore Gupta (the appellant) versus the Assistant Commissioner of Income Tax (ACIT), Circle-4(2), New Delhi (the respondent), under case number ITA 6679/DEL/2019. The appeal, pertaining to the assessment year (AY) 2010-11, was filed on August 9, 2019, and the final tribunal order was pronounced on December 21, 2020. The case was dismissed as infructuous due to the appellant opting for the Direct Tax Vivad se Vishwas Scheme 2020.

Background of the Case

Navel Kishore Gupta, the appellant, had filed an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]-31, New Delhi, dated June 11, 2019. The appeal was listed for hearing before the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘SMC-1’, New Delhi, on December 21, 2020. The case was heard by Sh. Bhavnesh Saini, Judicial Member, and Dr. B. R. R. Kumar, Accountant Member, through video conferencing.

The appellant, Navel Kishore Gupta, did not appear for the hearing, and the Revenue was represented by Mr. Sriprakash Dubey, Senior Departmental Representative (DR).

Key Issue in the Appeal

The primary issue in the appeal was the appellant’s decision to opt for the Direct Tax Vivad se Vishwas Scheme 2020, a tax dispute resolution scheme introduced by the Government of India. Under this scheme, taxpayers with pending disputes can settle their cases by paying a specified percentage of the disputed tax amount, thereby avoiding prolonged litigation.

Proceedings Before the ITAT

During the hearing, the Senior DR informed the ITAT that the appellant had already filed Form 1 and Form 2 under the Vivad se Vishwas Scheme, indicating his intention to settle the dispute. In light of this development, the tribunal considered the appeal to have become infructuous.

The ITAT observed that since the appellant had opted for the Vivad se Vishwas Scheme, the appeal no longer had any merit to proceed. However, the tribunal granted liberty to the appellant to approach the ITAT again if the designated authority under the scheme failed to issue Form 3 (the certificate of settlement) as per the provisions of the scheme.

ITAT’s Decision

The ITAT dismissed the appeal as infructuous, acknowledging the appellant’s decision to settle the dispute under the Vivad se Vishwas Scheme. The tribunal’s order emphasized that the dismissal was without prejudice to the appellant’s right to re-approach the ITAT in case the settlement under the scheme was not finalized.

The order was pronounced in the open court on December 21, 2020, by the ITAT panel consisting of Sh. Bhavnesh Saini and Dr. B. R. R. Kumar.

Significance of the Ruling

This case underscores the effectiveness of the Vivad se Vishwas Scheme in resolving tax disputes and reducing the burden of litigation on both taxpayers and the tax authorities. By opting for the scheme, the appellant was able to settle the dispute without further legal proceedings, demonstrating the scheme’s utility as a tool for tax dispute resolution.

The ITAT’s decision to dismiss the appeal as infructuous highlights the tribunal’s recognition of the taxpayer’s choice to utilize the scheme, thereby streamlining the resolution process. The tribunal also showed consideration by allowing the appellant the option to return to the ITAT if the settlement process encountered any issues, ensuring that the taxpayer’s rights were protected.

Conclusion

The dismissal of the appeal in the case of Navel Kishore Gupta vs ACIT, Circle-4(2), New Delhi, serves as a significant example of the practical application of the Direct Tax Vivad se Vishwas Scheme 2020. This case illustrates how taxpayers can leverage the scheme to resolve disputes efficiently and avoid prolonged litigation. The ITAT’s ruling not only reinforces the value of the scheme but also ensures that taxpayers’ rights are safeguarded throughout the settlement process.

The Vivad se Vishwas Scheme continues to be an important mechanism for tax dispute resolution in India, providing a pathway for taxpayers to settle disputes amicably and reduce the backlog of cases in the judicial system. As demonstrated in this case, the scheme’s adoption by taxpayers can lead to the swift resolution of disputes, benefiting both the taxpayers and the tax authorities.

Navel Kishore Gupta vs ACIT – Appeal Dismissed as Infructuous Due to Vivad Se Vishwas Scheme for AY 2010-11