Ramesh Kumar Suneja vs. ACIT: Appeal Dismissal Under Vivad Se Vishwas Scheme for AY 2011-12

Case Overview

The case of Ramesh Kumar Suneja vs. ACIT, Circle-47(1), New Delhi (ITA No. 6381/DEL/2019) involves an appeal filed by the assessee, Ramesh Kumar Suneja, concerning the assessment year 2011-12. The case was adjudicated by the Income Tax Appellate Tribunal (ITAT) Delhi Bench “SMC-2” on 6th January 2021 through video conferencing. The appeal was ultimately dismissed under the provisions of the Vivad Se Vishwas Scheme, 2020, a scheme introduced by the Indian government to resolve pending tax disputes efficiently.

Background of the Case

Ramesh Kumar Suneja, a resident of Delhi, filed an appeal against the assessment order passed by the Commissioner of Income Tax (Appeals)-16, New Delhi, for the assessment year 2011-12. The appeal challenged the assessment made by the tax authorities, seeking relief from the additions or adjustments made in the income tax assessment. Although the specific details of the grounds for the appeal are not provided in the final order, it is common for such appeals to involve disputes over the correctness of taxable income, deductions, exemptions, or penalties imposed by the tax authorities.

Why the Case Was Filed

The appeal was filed by Ramesh Kumar Suneja to contest the assessment order issued by the ACIT, Circle-47(1), New Delhi, for the year 2011-12. Taxpayers often file such appeals when they believe that the assessment made by the tax authorities is incorrect or unjust. The reasons for filing can range from disputes over income determination, denial of deductions or exemptions, to the imposition of penalties.

In this case, Ramesh Kumar Suneja sought to challenge the assessment order for AY 2011-12, which he believed was not in accordance with the provisions of the Income Tax Act. However, as the legal proceedings progressed, the introduction of the Vivad Se Vishwas Scheme provided a viable alternative for resolving the dispute, leading to the withdrawal of the appeal.

The Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme, 2020, was introduced by the Indian government as a one-time settlement option for taxpayers to resolve their pending disputes with the income tax department. The scheme allowed taxpayers to pay their disputed taxes and obtain immunity from interest, penalties, and prosecution. The primary objective of the scheme was to reduce the number of litigations and expedite the resolution of tax disputes.

Under this scheme, taxpayers could declare their disputed tax amounts by filing Forms 1 and 2. Upon approval by the tax authorities, a certificate in Form 3 would be issued, confirming the settlement. This would then allow the taxpayer to withdraw any ongoing appeals related to the dispute.

Tribunal Proceedings

The case of Ramesh Kumar Suneja was scheduled for hearing on 6th January 2021. However, no one appeared on behalf of the assessee during the virtual hearing. Instead, the assessee submitted an application seeking permission to withdraw the appeal. The withdrawal request was based on the fact that Ramesh Kumar Suneja had opted to settle the tax dispute under the Vivad Se Vishwas Scheme, 2020. The application mentioned that the required forms (Form No. 1 & 2) had been filed, and Form 3, confirming the settlement under the scheme, had been issued by the tax authorities.

The Senior Departmental Representative (DR), Ms. Shivani Bansal, representing the Revenue, did not object to the withdrawal of the appeal in light of the settlement under the Vivad Se Vishwas Scheme.

Tribunal’s Decision

Considering the situation, the ITAT Delhi Bench, presided over by Hon’ble Accountant Member Shri R.K. Panda, decided to dismiss the appeal filed by Ramesh Kumar Suneja. The dismissal was granted on the grounds that the dispute had been resolved under the Vivad Se Vishwas Scheme, 2020, as indicated by the issuance of Form 3.

The tribunal’s order also included a caveat: if the tax dispute for the assessment year 2011-12 was not ultimately resolved under the scheme, Ramesh Kumar Suneja would have the option to approach the tribunal for the reinstitution of the appeal. This provision ensured that the taxpayer’s rights were protected in case the settlement did not proceed as expected.

The tribunal concluded by dismissing the appeal and consigning it to the record, effectively marking the case as resolved under the Vivad Se Vishwas Scheme, 2020.

Significance of the Case

The case of Ramesh Kumar Suneja vs. ACIT underscores the effectiveness of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes outside the court system. By opting for this scheme, taxpayers like Ramesh Kumar Suneja were able to settle their disputes more swiftly, avoiding the lengthy and costly process of litigation.

This case highlights the practical benefits of government-initiated schemes aimed at reducing litigation and facilitating tax compliance. The scheme provided a structured and predictable process for settling disputes, thereby offering taxpayers a viable alternative to prolonged legal battles.

The tribunal’s approach in handling the case also reflects the judiciary’s support for alternative dispute resolution mechanisms, recognizing the importance of efficient and timely resolution of tax disputes for both taxpayers and the government.

Conclusion

The case of Ramesh Kumar Suneja vs. ACIT, Circle-47(1), New Delhi (ITA No. 6381/DEL/2019) was resolved under the Vivad Se Vishwas Scheme, 2020. The appeal for the assessment year 2011-12 was dismissed by the ITAT after the appellant chose to settle the dispute through the scheme.

This resolution illustrates the practical utility of such schemes in the Indian tax system, offering an effective way for taxpayers to resolve disputes and ensure compliance without the need for extended litigation. By opting for the Vivad Se Vishwas Scheme, Ramesh Kumar Suneja successfully brought closure to his tax dispute, demonstrating the benefits of utilizing government-initiated dispute resolution mechanisms.

The case sets a positive precedent for the use of the Vivad Se Vishwas Scheme and similar initiatives, providing valuable insights for taxpayers, tax professionals, and policymakers alike.

Ramesh Kumar Suneja vs. ACIT: Appeal Dismissal Under Vivad Se Vishwas Scheme for AY 2011-12