This case involves Payal Bansal, a resident of New Delhi, who filed an appeal against the order of the Commissioner of Income Tax (Appeals)-17, New Delhi, for the assessment year 2015-16. The appellant opted to resolve the tax dispute through the Direct Tax Vivad Se Vishwas Scheme, 2020, which led to the withdrawal of the appeal.
Payal Bansal, the appellant, had filed her income tax return for the assessment year 2015-16. During the assessment proceedings, certain additions and disallowances were made by the Assessing Officer (AO), which the appellant contested by filing an appeal with the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) upheld the AO’s order, prompting the appellant to file a further appeal with the Income Tax Appellate Tribunal (ITAT).
While the appeal was pending before the ITAT, the appellant decided to settle the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the government to reduce litigation and allow taxpayers to resolve their disputes with the Income Tax Department by paying a specified amount, depending on the nature of the dispute.
The Vivad Se Vishwas Scheme, 2020, was a significant initiative by the Government of India to resolve pending tax disputes. It provided an opportunity for taxpayers to settle their disputes by paying a percentage of the disputed tax amount, thereby avoiding prolonged litigation. The scheme was well-received, with many taxpayers opting to settle their disputes under this framework.
During the virtual hearing before the ITAT on 16th July 2021, no one appeared on behalf of Payal Bansal. The appellant had already submitted a letter dated 6th July 2021, requesting the withdrawal of the appeal, citing the decision to settle the tax arrears under the Vivad Se Vishwas Scheme. The appellant also submitted a certificate issued under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming the settlement of the tax dispute.
The Senior Departmental Representative (DR) present at the hearing raised no objections to the withdrawal of the appeal, acknowledging that the matter had been settled under the Vivad Se Vishwas Scheme.
After considering the submissions and the certificate under the Vivad Se Vishwas Scheme, the ITAT accepted the appellant’s request for withdrawal. The appeal was accordingly dismissed as withdrawn. The final order was pronounced on 16th July 2021.
This case illustrates the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes amicably. By opting for the scheme, Payal Bansal was able to settle the dispute with the Income Tax Department efficiently, avoiding further litigation and potential penalties.
The success of the Vivad Se Vishwas Scheme in reducing the backlog of cases and offering a simple resolution mechanism has been evident in cases like this. It highlights the importance of such alternative dispute resolution schemes in streamlining the tax administration process and providing relief to taxpayers.
In conclusion, the withdrawal of the appeal under the Vivad Se Vishwas Scheme allowed Payal Bansal to achieve a quick and effective resolution to the tax dispute for the assessment year 2015-16, demonstrating the value of these schemes in fostering a more efficient tax compliance environment.
Payal Bansal vs ITO, Ward-51(2) – Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2015-16
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