Pawan Arya vs. ACIT Central Circle-25: Tax Dispute Resolution for AY 2014-15

Introduction

The tax dispute involving Pawan Arya and the Assistant Commissioner of Income Tax (ACIT), Central Circle-25, New Delhi for the assessment year 2014-15 highlights a significant resolution process under the Vivad Se Vishwas Scheme. This article provides a comprehensive overview of the case, the issues at hand, and the implications of the resolution.

Case Background

Pawan Arya, the appellant, faced a tax assessment dispute for the assessment year 2014-15. The case was directed against the order of the learned Commissioner of Income Tax (Appeals) -29, New Delhi, which was dated June 10, 2019. The dispute pertained to undisclosed tax liabilities which were later addressed through the government’s Vivad Se Vishwas Scheme, aimed at reducing litigation in direct tax disputes.

Legal Proceedings

The appeal process was initiated after the appellant disagreed with the outcomes of the initial assessments and sought redressal through the appellate tribunal. The proceedings highlighted various legal arguments concerning the interpretation and application of tax laws which were critical to the case.

Settlement under Vivad Se Vishwas Scheme

In a turn towards resolution, the learned counsel for the appellant, Shri Kapil Goel, filed a letter dated October 31, 2020, requesting the withdrawal of the appeal. This request was based on the appellant’s decision to opt for settlement under the Vivad Se Vishwas Scheme, 2020. A certificate to this effect under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also submitted to substantiate the settlement claim.

Decision of the Tribunal

The Income Tax Appellate Tribunal (ITAT), consisting of Shri G.S. Pannu and Shri Amit Shukla, presided over the case. After considering the submissions and the consent for settlement provided by the respondent’s representative, Shri H.K. Choudhary, CIT-DR, the tribunal accepted the request for withdrawal of the appeal. Consequently, the appeal was dismissed as withdrawn, marking a resolution to the dispute.

Implications of the Decision

The resolution of this case under the Vivad Se Vishwas Scheme not only provided closure to the appellant but also underscored the effectiveness of alternative dispute resolution mechanisms in tax disputes. It highlighted the government’s initiative to minimize litigation and provide taxpayers with an amicable solution to disputes.

Conclusion

The case of Pawan Arya vs. ACIT Central Circle-25 is a testament to the evolving landscape of tax litigation in India. By opting for settlement under the Vivad Se Vishwas Scheme, the appellant was able to conclude the dispute in a non-contentious manner, which may encourage more taxpayers to consider similar resolutions for their disputes. This case serves as an important reference for understanding the procedural aspects and benefits of the Vivad Se Vishwas Scheme in resolving tax disputes.

Pawan Arya vs. ACIT Central Circle-25: Tax Dispute Resolution for AY 2014-15