Pecos Exim Pvt Ltd vs ITO Ward 19(3), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2011-12

Pecos Exim Pvt Ltd vs ITO Ward 19(3), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2011-12

Case Number: ITA 6100/DEL/2019

Appellant: Pecos Exim Pvt Ltd, New Delhi

Respondent: ITO Ward 19(3), New Delhi

Assessment Year: 2011-12

Order Type: Final Tribunal Order

Date of Order: 10th December 2020

Case Filed On: 18th July 2019

Pronounced On: 10th December 2020

Background of the Case

Pecos Exim Pvt Ltd, a company based in New Delhi, filed an appeal against the Income Tax Officer (ITO), Ward 19(3), New Delhi, concerning the assessment year 2011-12. The appeal was lodged in the Income Tax Appellate Tribunal (ITAT), Delhi Bench, under case number ITA 6100/DEL/2019. The appellant, represented by Shri Kapil Goel, Advocate, challenged the order passed by the learned Commissioner of Income Tax (Appeals)-7 [CIT(A)], New Delhi, dated 24th May 2019.

The appeal was filed primarily due to the disputes arising from the tax assessment for the year 2011-12. The company sought relief from the tax demands raised by the department, which were deemed excessive and unjust. However, before the tribunal could fully hear and adjudicate the matter, a significant development occurred.

Vivad Se Vishwas Scheme

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme in 2020, aimed at resolving pending tax disputes. The scheme allowed taxpayers to settle their disputes by paying a specified percentage of the disputed tax and getting complete immunity from interest, penalty, and prosecution.

Seeing the opportunity for a swift and final resolution, Pecos Exim Pvt Ltd opted to settle their tax disputes under this scheme. Consequently, the appellant decided to withdraw the appeal filed before the ITAT.

Tribunal Proceedings

The case was scheduled for a Virtual Hearing before the Delhi Bench of the ITAT on 10th December 2020. The bench was presided over by Vice President Shri G.S. Pannu and Judicial Member Shri Amit Shukla. However, at the time of the hearing, no one appeared on behalf of the assessee.

Instead, the learned counsel for the assessee, via an email dated 7th December 2020, formally requested the withdrawal of the appeal. The counsel confirmed that the assessee had opted to resolve the dispute under the Vivad Se Vishwas Scheme, 2020. A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also submitted, validating the assessee’s claim to have settled the tax arrears for the assessment year under consideration.

Final Tribunal Order

Given the above developments, the learned Senior Departmental Representative (DR), Shri Shriprakash Dubey, had no objection to the withdrawal request. The tribunal, after considering the submissions, accepted the withdrawal request of the appellant.

In its final order, the ITAT dismissed the appeal as withdrawn. The bench noted that the decision was announced immediately after the conclusion of the virtual hearing on 10th December 2020.

Conclusion

The case of Pecos Exim Pvt Ltd vs ITO Ward 19(3), New Delhi, serves as a pertinent example of how the Vivad Se Vishwas Scheme has been effectively utilized by taxpayers to resolve pending disputes. By opting for this scheme, Pecos Exim Pvt Ltd successfully avoided protracted litigation and achieved a timely settlement of its tax liabilities for the assessment year 2011-12.

This decision highlights the efficacy of alternative dispute resolution mechanisms introduced by the government and their potential benefits for both taxpayers and the revenue authorities.

Note: The above summary provides an overview of the tribunal proceedings and the final order in the case of Pecos Exim Pvt Ltd. For further details, interested parties may refer to the full text of the tribunal’s order dated 10th December 2020.

Sd/-
(AMIT SHUKLA)
JUDICIAL MEMBER

Sd/-
(G.S. PANNU)
VICE PRESIDENT

Assistant Registrar

Pecos Exim Pvt Ltd vs ITO Ward 19(3), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2011-12