Case Number: ITA 618/DEL/2019
Appellant: Qualcomm India Pvt. Ltd., New Delhi
Respondent: Addl. CIT, Special Range-7, New Delhi
Assessment Year: 2014-15
Result: 2014-15
Case Filed On: 2019-01-29
Order Type: Final Tribunal Order
Date of Order: 2021-08-02
Pronounced On: 2021-08-02
The case of Qualcomm India Pvt. Ltd. vs Addl. CIT in the Income Tax Appellate Tribunal (ITAT) for the assessment year 2014-15 highlights the resolution of a tax dispute through the Vivad Se Vishwas Scheme. This article delves into the background of the case, the proceedings, and the final judgment that led to the withdrawal of the appeal.
Qualcomm India Pvt. Ltd., the appellant in this case, is the successor of M/s Ikanos Communication (India) Pvt. Ltd. The company filed its income tax return for the assessment year 2014-15, which was subsequently scrutinized by the Additional Commissioner of Income Tax, Special Range-7, New Delhi. The assessment order dated 29.11.2018 led to a tax dispute, prompting Qualcomm India Pvt. Ltd. to file an appeal before the ITAT.
The appeal was heard by the ITAT Bench ‘I-2’, New Delhi, consisting of Sh. Anil Chaturvedi, Accountant Member, and Sh. K. Narasimha Chary, Judicial Member. The hearing was conducted through video conferencing due to the ongoing pandemic restrictions.
During the proceedings, the appellant, represented by Ms. Gayatri Dutt, Advocate, informed the Tribunal that Qualcomm India Pvt. Ltd. had opted for the Vivad Se Vishwas (VSV) Scheme 2020. The company filed the required declaration (Form-1) and undertaking (Form-2) under the scheme, and the department issued Form-3, acknowledging the application.
The Vivad Se Vishwas Scheme was introduced by the Indian government to resolve pending tax disputes. The scheme allows taxpayers to settle their disputes by paying a specified percentage of the disputed tax amount, thereby reducing litigation and providing a quicker resolution to tax-related issues.
In this case, Qualcomm India Pvt. Ltd. chose to utilize the scheme to settle its tax dispute for the assessment year 2014-15. The company’s decision to opt for the VSV Scheme was aimed at resolving the dispute efficiently and minimizing prolonged litigation.
Considering the application submitted by Qualcomm India Pvt. Ltd. and the absence of any objection from the Revenue, represented by Shri Yogesh Verma, CIT-DR, the Tribunal accepted the company’s request to withdraw the appeal. The ITAT dismissed the appeal as withdrawn, subject to the condition that if the dispute related to the tax arrears for the specified assessment year is not ultimately resolved under the VSV Scheme, Qualcomm India Pvt. Ltd. would be at liberty to approach the Tribunal for reinstating the appeal.
The Tribunal’s decision to allow the withdrawal of the appeal was pronounced in the open court on 02.08.2021, immediately after the conclusion of the hearing in virtual mode. This decision underscores the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes and reducing the burden of litigation on both taxpayers and the tax authorities.
In conclusion, the case of Qualcomm India Pvt. Ltd. vs Addl. CIT for the assessment year 2014-15 demonstrates the successful resolution of a tax dispute through the Vivad Se Vishwas Scheme. The ITAT’s decision to dismiss the appeal as withdrawn highlights the scheme’s role in providing an efficient and amicable solution to pending tax disputes. This case serves as an example for other taxpayers facing similar issues, encouraging them to consider the benefits of the Vivad Se Vishwas Scheme for a quicker resolution of their tax matters.
Order pronounced in the open court on 02.08.2021 by the Judicial Member Sh. K. Narasimha Chary and the Accountant Member Sh. Anil Chaturvedi.
Source: Income Tax Appellate Tribunal Delhi Bench ‘I-2’, New Delhi
Disclaimer: This article provides a general overview of the case and is not a substitute for professional legal advice. For detailed information, readers are encouraged to refer to the official case documents and consult with a qualified legal professional.
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