Rajender Kumar Kalra vs. ITO Ward-42(3), New Delhi – ITA No. 6629/DEL/2019: Appeal Withdrawn Under Vivad Se Vishwas Scheme

Rajender Kumar Kalra vs. ITO Ward-42(3), New Delhi

ITA No. 6629/DEL/2019 – Assessment Year 2015-16

Appellant: Rajender Kumar Kalra, New Delhi

Respondent: ITO Ward-42(3), New Delhi

Date of Order: 31st December 2020

Pronounced on: 31st December 2020

Order Type: Final Tribunal Order

Background of the Case

This case involves an income tax dispute between Rajender Kumar Kalra, a resident of New Delhi, and the Income Tax Officer (ITO), Ward-42(3), New Delhi. The dispute pertains to the assessment year 2015-16, and the case was filed on 8th August 2019 under the case number ITA 6629/DEL/2019. The primary issue in this appeal was related to the assessment of income for the said financial year.

The appellant, Rajender Kumar Kalra, had initially filed an appeal against the assessment order passed by the ITO. However, during the course of the proceedings, the appellant opted to avail of the Vivad Se Vishwas Scheme, a government initiative aimed at resolving pending tax disputes by offering taxpayers the opportunity to settle their cases with reduced penalties and interest.

Vivad Se Vishwas Scheme: A Path to Dispute Resolution

The Vivad Se Vishwas Scheme, introduced by the Indian government, was designed to alleviate the burden of ongoing litigation and encourage taxpayers to resolve their disputes amicably. Under this scheme, taxpayers could settle their pending cases by paying a specified percentage of the disputed tax amount. In return, they would receive immunity from interest, penalties, and prosecution related to the dispute.

In this case, Rajender Kumar Kalra decided to take advantage of the Vivad Se Vishwas Scheme to settle the tax dispute for the assessment year 2015-16. By opting for this scheme, the appellant aimed to bring an end to the ongoing litigation and avoid further legal complexities.

Proceedings Before the ITAT

During the hearing before the Income Tax Appellate Tribunal (ITAT) Delhi Bench, the appellant’s counsel, Mr. Akash Garg, informed the tribunal that the appellant had opted for the Vivad Se Vishwas Scheme and wished to withdraw the appeal. The appellant’s counsel requested the tribunal to dismiss the appeal as withdrawn, in accordance with the provisions of the scheme.

The Senior Departmental Representative (DR), Mr. Prakash Dubey, representing the Revenue, raised no objection to the appellant’s request for withdrawal. Consequently, the tribunal, led by Judicial Member Shri H.S. Sidhu, considered the request and agreed to dismiss the appeal as withdrawn.

ITAT’s Findings and Decision

The ITAT noted that the appellant, Rajender Kumar Kalra, had chosen to resolve the dispute through the Vivad Se Vishwas Scheme, which necessitated the withdrawal of the appeal. The tribunal, keeping in view the statement made by the appellant’s counsel, dismissed the appeal as withdrawn. However, the tribunal also provided the appellant with the liberty to file an application for recalling the order if Form No. 3, a crucial document under the scheme, was not issued by the competent authority. In such a scenario, the case would be reconsidered according to the applicable law.

The dismissal of the appeal marked the conclusion of the tax dispute for the assessment year 2015-16, with the appellant successfully opting for the Vivad Se Vishwas Scheme to settle the matter.

Conclusion

This case highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving long-standing tax disputes. By opting for this scheme, Rajender Kumar Kalra was able to bring an end to the ongoing litigation and settle the tax dispute with reduced liabilities. The ITAT’s decision to dismiss the appeal as withdrawn underscores the tribunal’s support for the amicable resolution of disputes under the scheme.

For taxpayers facing similar disputes, the Vivad Se Vishwas Scheme offers a viable path to resolution, enabling them to avoid prolonged litigation and potential penalties. This case serves as an example of how taxpayers can leverage government initiatives to achieve a favorable outcome in their tax matters.

Order Pronounced in the Open Court on 31st December 2020

Per H.S. Sidhu, Judicial Member.

Rajender Kumar Kalra vs. ITO Ward-42(3), New Delhi – ITA No. 6629/DEL/2019: Appeal Withdrawn Under Vivad Se Vishwas Scheme