Case Number: ITA 1140/DEL/2020
Appellant: Pankaj Mangat HUF, New Delhi
Respondent: ITO Ward – 40(2), New Delhi
Assessment Year: 2015-16
Result: 2015-16
Case Filed On: 2020-03-20
Order Type: Final Tribunal Order
Date of Order: 2021-12-24
Pronounced On: 2021-12-24
This case involves Pankaj Mangat HUF from New Delhi appealing against the order of the Income Tax Officer (ITO) Ward – 40(2), New Delhi, for the assessment year 2015-16. The appeal was withdrawn as the issue was resolved under the Direct Tax Vivad se Vishwas Scheme, 2020.
The appellant, Pankaj Mangat HUF, filed an appeal against the order dated 30/01/2020 passed by the Commissioner of Income Tax (Appeals) – 14, New Delhi, for the assessment year 2015-16. The main issue was related to certain tax arrears which the appellant sought to resolve through the Direct Tax Vivad se Vishwas Scheme (VSV) Act, 2020.
On 13th December 2021, the appellant moved an application under the VSV Act, 2020, and filed Declaration Form No. 1 & 2. Subsequently, the appellant received Form No. 3 dated 19/10/2020, indicating that the issue was being processed under the scheme.
The Income Tax Appellate Tribunal (ITAT) consisting of Accountant Member Shri R. K. Panda and Judicial Member Shri Narender Kumar Choudhary, heard the appeal through video conferencing. The appellant was represented by Sh. Ashish Sachdeva, CA, and the respondent was represented by Sh. M. Barnwal, Sr. DR.
Considering the submissions of the appellant and the fact that the issue was being resolved under the VSV scheme, the Tribunal decided to dismiss the appeal as withdrawn. However, the Tribunal added a caveat that if the dispute relating to tax arrears for the captioned assessment year was not ultimately resolved in terms of the VSV Act, 2020, the appellant would be at liberty to approach the Tribunal for reinstitution of the appeal. In such a case, the Tribunal would consider the reinstatement of the appeal.
In conclusion, the appeal filed by Pankaj Mangat HUF against the ITO Ward – 40(2), New Delhi, for the assessment year 2015-16, was dismissed as withdrawn by the ITAT. The decision was made after considering that the issue was being resolved under the Direct Tax Vivad se Vishwas Scheme, 2020. The Tribunal provided a provision for the appellant to reinstitute the appeal if the issue was not resolved under the scheme.
This case highlights the effectiveness of the Direct Tax Vivad se Vishwas Scheme, 2020, in resolving tax disputes and reducing litigation. The scheme provides a mechanism for taxpayers to settle their tax disputes by paying a specified percentage of the disputed tax and getting a waiver from interest and penalties.
The ITAT’s decision also emphasizes the Tribunal’s flexibility in allowing appellants to reinstitute their appeals if the resolution under the VSV scheme does not materialize. This ensures that taxpayers have an avenue to seek justice and resolve their tax disputes effectively.
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