Paradise International Pvt Ltd vs ITO: Appeal Withdrawal Under Vivad Se Vishwas Scheme for Assessment Year 2011-12

Paradise International Pvt Ltd vs ITO: Appeal Withdrawal Under Vivad Se Vishwas Scheme for Assessment Year 2011-12

The case of Paradise International Pvt Ltd, New Delhi, versus the Income Tax Officer, Ward-19(3), New Delhi, for the assessment year 2011-12 was addressed by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘SMC-1’ on March 4, 2021. The appeal, numbered ITA 6465/DEL/2019, was initially filed on August 1, 2019, challenging the assessment order issued for the financial year under review.

The appellant, Paradise International Pvt Ltd, through its authorized representative, submitted a formal request to withdraw the appeal, indicating that the company had decided to opt for the Vivad Se Vishwas Scheme, 2020. The Vivad Se Vishwas Scheme was an initiative by the Government of India aimed at resolving pending tax disputes by allowing taxpayers to settle their cases by paying the disputed tax amount, while receiving waivers on interest and penalties.

During the virtual hearing, the ITAT was informed that the appellant’s representative had filed a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming that the company had opted to settle the dispute under the scheme. The Senior Departmental Representative (DR), Shri R.K. Gupta, raised no objections to the request for withdrawal.

Background of the Case

The case revolved around the assessment year 2011-12, for which Paradise International Pvt Ltd had filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)-7, New Delhi. The specifics of the disputed issues were not elaborated upon during the hearing, as the appellant chose to withdraw the appeal under the Vivad Se Vishwas Scheme. This decision highlighted the company’s preference to resolve the tax dispute through the scheme, which offered a more straightforward and financially advantageous resolution.

The withdrawal of the appeal under the Vivad Se Vishwas Scheme suggests that the company aimed to avoid prolonged litigation and the associated costs by settling the dispute amicably. The ITAT recognized this intent and permitted the withdrawal of the appeal.

Key Points from the ITAT Order

• The ITAT approved the withdrawal of the appeal filed by Paradise International Pvt Ltd for the assessment year 2011-12 under the Vivad Se Vishwas Scheme.
• The withdrawal was supported by a certificate issued under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, which confirmed the company’s decision to settle the dispute under the scheme.
• The appeal was dismissed as withdrawn, thereby concluding the case without further examination of the underlying issues that led to the initial filing of the appeal.

Conclusion

The case of Paradise International Pvt Ltd vs ITO demonstrates how taxpayers can effectively utilize government initiatives like the Vivad Se Vishwas Scheme to resolve ongoing tax disputes in a timely and cost-effective manner. By opting for the scheme, the company was able to conclude its dispute for the assessment year 2011-12 without the need for further legal proceedings, thus avoiding additional costs and uncertainties.

The ITAT’s decision to allow the withdrawal of the appeal reflects the tribunal’s acknowledgment of the taxpayer’s right to choose an alternative dispute resolution mechanism provided by the government. This case underscores the benefits of the Vivad Se Vishwas Scheme in promoting the resolution of tax disputes efficiently and amicably, contributing to a more streamlined and cooperative tax administration process.

Paradise International Pvt Ltd vs ITO: Appeal Withdrawal Under Vivad Se Vishwas Scheme for Assessment Year 2011-12