Nirman Overseas Pvt. Ltd. vs ACIT Circle-18(2), New Delhi – ITA 6342/DEL/2019 – Vivad Se Vishwas Scheme

Case Analysis: Nirman Overseas Pvt. Ltd. vs ACIT Circle-18(2), New Delhi – ITA 6342/DEL/2019

Case Number: ITA 6342/DEL/2019

Appellant: Nirman Overseas Pvt. Ltd., New Delhi

Respondent: ACIT Circle-18(2), New Delhi

Assessment Year: 2016-17

Order Type: Final Tribunal Order

Date of Order: 22nd January 2021

Pronounced on: 22nd January 2021

Case Filed On: 29th July 2019

Background of the Case

The case of Nirman Overseas Pvt. Ltd. vs ACIT Circle-18(2), New Delhi pertains to the assessment year 2016-17. Nirman Overseas Pvt. Ltd., a company based in New Delhi, filed an appeal against the assessment order passed by the Assistant Commissioner of Income Tax (ACIT) Circle-18(2), New Delhi. The appellant sought relief from the assessment order issued by the tax authorities, which involved certain disputes regarding tax liabilities for the relevant assessment year.

Why the Case Was Filed

Nirman Overseas Pvt. Ltd. filed this appeal to challenge the assessment order issued by the ACIT Circle-18(2), New Delhi, for the assessment year 2016-17. The appellant contended that the assessment order contained discrepancies and sought relief from the Income Tax Appellate Tribunal (ITAT) by filing the appeal. The appeal was crucial for the appellant to resolve the disputes related to the tax arrears and to ensure that the assessment process was conducted fairly and in accordance with the law.

However, during the pendency of the appeal, the appellant opted to resolve the tax dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020, introduced by the Government of India. This scheme allowed taxpayers to settle their tax disputes by paying a specified amount, thereby avoiding prolonged litigation and potential penalties.

Tribunal Proceedings

The appeal was heard by the Delhi Bench ‘A’ of the Income Tax Appellate Tribunal (ITAT) on 22nd January 2021. The bench comprised Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member. The hearing was conducted through video conferencing due to the ongoing pandemic restrictions.

During the hearing, the appellant was represented by Sh. M.P. Rastogi, Advocate, while the revenue was represented by Sh. M. Baranwal, Senior Departmental Representative (DR). The appellant’s counsel submitted a letter requesting the withdrawal of the appeal, citing the fact that the appellant had opted for the Vivad Se Vishwas Scheme, 2020, to settle the dispute. The counsel further informed the tribunal that a certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, had already been obtained.

Tribunal’s Decision

The tribunal considered the request made by the appellant for the withdrawal of the appeal. The Senior Departmental Representative (DR) raised no objection to the withdrawal. In view of the appellant’s request and the absence of any objection from the revenue, the tribunal accepted the request for withdrawal of the appeal.

Consequently, the tribunal dismissed the appeal of Nirman Overseas Pvt. Ltd. as withdrawn. The order was pronounced in the open court on 22nd January 2021, immediately following the conclusion of the virtual hearing. The tribunal’s decision was signed by both the Judicial Member, Shri Sudhanshu Srivastava, and the Vice President, Shri G.S. Pannu, reflecting the fair and just handling of the case.

Significance of the Case

This case is significant as it demonstrates the effectiveness of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes. The scheme provided taxpayers with an opportunity to settle their disputes amicably and avoid prolonged litigation. By opting for the scheme, the appellant was able to resolve the dispute related to the assessment year 2016-17 without further legal proceedings.

The tribunal’s decision to accept the withdrawal of the appeal under the Vivad Se Vishwas Scheme underscores the importance of alternative dispute resolution mechanisms in the tax litigation process. It highlights the need for taxpayers and tax authorities to work collaboratively towards resolving disputes in a manner that is fair and efficient for all parties involved.

Overall, the case of Nirman Overseas Pvt. Ltd. vs ACIT Circle-18(2), New Delhi serves as a precedent for other taxpayers considering the Vivad Se Vishwas Scheme as a viable option for settling tax disputes. It also reaffirms the tribunal’s role in facilitating the resolution of tax disputes through fair and transparent proceedings.

Nirman Overseas Pvt. Ltd. vs ACIT Circle-18(2), New Delhi – ITA 6342/DEL/2019 – Vivad Se Vishwas Scheme