Ramavtar of Jhajjar Withdraws Appeal in Tax Dispute for AY 2011-12 Under Vivad Se Vishwas Scheme

Ramavtar of Jhajjar Withdraws Appeal in Tax Dispute for AY 2011-12 Under Vivad Se Vishwas Scheme

In a recent development, Shri Ramavtar, a resident of Jhajjar, Haryana, chose to withdraw his appeal in a tax dispute for the assessment year (AY) 2011-12. The case, identified under case number ITA 6610/DEL/2019, was originally filed against the Income Tax Officer (ITO), Ward-5, Rohtak. The withdrawal was made under the provisions of the Vivad Se Vishwas Scheme, 2020, which aims to resolve tax disputes amicably.

Background of the Case

Shri Ramavtar had filed an appeal against the order passed by the Commissioner of Income Tax (Appeals), Rohtak, dated June 28, 2019. The appeal was brought before the Income Tax Appellate Tribunal (ITAT), Delhi, and was scheduled for a hearing on September 25, 2020. The dispute revolved around tax arrears related to the AY 2011-12.

The Vivad Se Vishwas Scheme, introduced by the Government of India, provides taxpayers with an opportunity to settle pending tax disputes by paying a specified percentage of the disputed tax. In return, the taxpayer receives immunity from further legal proceedings in the matter. This scheme has been widely adopted by taxpayers seeking to avoid prolonged litigation and resolve their tax disputes in a cost-effective manner.

Request for Withdrawal

On September 18, 2020, Shri Ramavtar, through his counsel Shri Naveen Kumar Goyal, CA, submitted a request to withdraw the appeal. The request was made in light of Shri Ramavtar’s decision to settle the tax dispute under the Vivad Se Vishwas Scheme. A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also submitted as proof of the settlement.

The Senior Departmental Representative (DR), Shri M. Baranwal, representing the Income Tax Department, had no objections to the withdrawal request. Consequently, the ITAT, comprising Vice President Shri G.S. Pannu and Judicial Member Shri K. Narasimha Chary, accepted the withdrawal request during a virtual hearing held on September 25, 2020.

Tribunal’s Order

The ITAT officially dismissed the appeal as withdrawn, following the request submitted by the appellant. The Tribunal’s order was pronounced on the same day, bringing the case to a close. The withdrawal of the appeal under the Vivad Se Vishwas Scheme effectively resolves the tax dispute for AY 2011-12, providing closure for both the taxpayer and the Income Tax Department.

Conclusion

The withdrawal of Shri Ramavtar’s appeal under the Vivad Se Vishwas Scheme highlights the efficacy of the scheme in resolving long-standing tax disputes. By opting for this route, Shri Ramavtar has avoided the potential costs and uncertainties associated with prolonged litigation. The scheme has been instrumental in reducing the backlog of cases in the Indian tax system, offering taxpayers a viable alternative to litigation.

This case serves as a reminder to other taxpayers with pending disputes that the Vivad Se Vishwas Scheme remains a valuable option for settling tax arrears and avoiding further legal entanglements. With the success of cases like Shri Ramavtar’s, it is anticipated that more taxpayers will choose to utilize this scheme in the future.

Ramavtar of Jhajjar Withdraws Appeal in Tax Dispute for AY 2011-12 Under Vivad Se Vishwas Scheme