Rahul Gupta vs ITO Ward-50(3) – Vivad Se Vishwas Appeal Case – ITA 6335/DEL/2019

Case Analysis: Rahul Gupta vs ITO Ward-50(3) – ITA 6335/DEL/2019

Case Number: ITA 6335/DEL/2019

Appellant: Rahul Gupta, New Delhi

Respondent: ITO Ward-50(3), New Delhi

Assessment Year: 2015-16

Order Type: Final Tribunal Order

Date of Order: 27th October 2021

Pronounced on: 27th October 2021

Case Filed On: 29th July 2019

Background of the Case

The case of Rahul Gupta vs ITO Ward-50(3) pertains to the assessment year 2015-16. Rahul Gupta, the appellant, had filed an appeal against the Income Tax Officer (ITO), Ward-50(3), New Delhi, challenging the order passed by the Commissioner of Income Tax (Appeals)-17, New Delhi on 19th June 2019. The appeal primarily focused on issues related to tax arrears, where the appellant sought relief from the demands raised by the tax authorities.

Why the Case Was Filed

Rahul Gupta filed this appeal because he disagreed with the assessment made by the ITO for the year 2015-16, which led to additional tax demands. The appellant believed that the assessment was not in line with the provisions of the Income Tax Act, 1961, and therefore sought relief from the Income Tax Appellate Tribunal (ITAT) by challenging the order of the CIT(A).

The core issue revolved around the tax arrears that were disputed by the appellant. This appeal was part of the legal recourse taken by Rahul Gupta to contest the tax liability determined by the assessing officer.

Vivad Se Vishwas Scheme 2020

During the pendency of the appeal, the Indian government introduced the Vivad Se Vishwas (VSV) Scheme in 2020, which aimed to resolve long-pending tax disputes by providing taxpayers with an opportunity to settle their cases with the tax department by paying a specified percentage of the disputed tax. The scheme was designed to reduce litigation and bring about quicker resolution of tax disputes.

Rahul Gupta, recognizing the benefits of the VSV Scheme, decided to opt for it. The appellant filed the necessary declarations under the scheme, including Form-1 (Declaration under the Vivad Se Vishwas Scheme) and Form-2 (Undertaking), signaling his intention to settle the dispute amicably. The tax department subsequently issued Form-3, which is a certificate acknowledging the payment to be made under the scheme.

Tribunal Proceedings

The case was heard by the Delhi Bench ‘SMC-1’ of the Income Tax Appellate Tribunal (ITAT) through video conferencing. The bench was presided over by Shri Anil Chaturvedi, Accountant Member, who considered the appeal filed by Rahul Gupta.

During the proceedings, the appellant’s representative, Shri V. K. Sabharwal, Advocate, informed the tribunal that Rahul Gupta had opted for the Vivad Se Vishwas Scheme, 2020, and had already submitted the required forms. In light of this, the appellant requested to withdraw the appeal, stating that the tax dispute was on the verge of being resolved under the scheme.

Ms. Sangeeta Yadav, the Senior Departmental Representative (DR), who represented the revenue, raised no objections to the appellant’s request to withdraw the appeal. This paved the way for the tribunal to consider the application for withdrawal.

Tribunal’s Decision

The tribunal, after reviewing the application and considering the submissions made by both parties, acknowledged that Rahul Gupta had indeed opted for the Vivad Se Vishwas Scheme. The tribunal noted that the appellant had received Form-3 from the tax department, indicating that the settlement process under the scheme was in progress.

Given these developments, Shri Anil Chaturvedi, Accountant Member, decided to allow the withdrawal of the appeal. The tribunal, however, included a caveat in its order, stating that if the dispute relating to the tax arrears for the assessment year 2015-16 was not ultimately resolved under the Vivad Se Vishwas Scheme, Rahul Gupta would be at liberty to approach the tribunal for reinstitution of the appeal. The tribunal assured that any such application for reinstitution would be considered appropriately as per law.

The tribunal then dismissed the appeal as withdrawn, subject to the aforementioned conditions.

Final Judgment

In conclusion, the tribunal dismissed the appeal filed by Rahul Gupta as withdrawn, following his decision to opt for the Vivad Se Vishwas Scheme, 2020. The tribunal’s order was pronounced in the open court on 27th October 2021, immediately after the conclusion of the hearing of the matter in a virtual mode.

This case highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes and reducing the burden of litigation on both taxpayers and the tax department. By opting for the scheme, Rahul Gupta was able to expedite the resolution of his tax dispute, avoiding prolonged litigation and bringing about a quicker conclusion to his case.

The order issued by Shri Anil Chaturvedi, Accountant Member, sets a precedent for other taxpayers considering the Vivad Se Vishwas Scheme as a viable option for settling their tax disputes. The tribunal’s decision underscores the importance of schemes like Vivad Se Vishwas in promoting a more efficient and taxpayer-friendly dispute resolution mechanism.

Overall, this case serves as a reminder to taxpayers and tax practitioners alike of the benefits of participating in government-initiated schemes designed to streamline tax administration and reduce the backlog of cases pending before various appellate forums.

Rahul Gupta vs ITO Ward-50(3) – Vivad Se Vishwas Appeal Case – ITA 6335/DEL/2019