Ramesh Kumar Upadhya (HUF), Ghaziabad vs ACIT Circle-2, Ghaziabad: Withdrawal Under Vivad Se Vishwas Scheme for AY 2015-16

Ramesh Kumar Upadhya (HUF), Ghaziabad vs ACIT Circle-2, Ghaziabad: Withdrawal Under Vivad Se Vishwas Scheme for AY 2015-16

Case Number: ITA 6437/DEL/2019
Appellant: Ramesh Kumar Upadhya (HUF), Ghaziabad
Respondent: ACIT Circle-2, Ghaziabad
Assessment Year: 2015-16
Date of Order: 2020-12-31
Order Type: Final Tribunal Order
Case Filed On: 2019-08-01

Background of the Case

This case concerns the appeal filed by M/s Ramesh Kumar Upadhya, Karta (HUF), Ghaziabad against the order passed by the Assistant Commissioner of Income Tax (ACIT) Circle-2, Ghaziabad for the assessment year 2015-16. The appeal was originally filed on 1st August 2019 before the Income Tax Appellate Tribunal (ITAT), Delhi Bench.

The case arose out of an assessment order passed by the ACIT, which the appellant, represented by its Karta, Ramesh Kumar Upadhya, challenged in the Tribunal. The assessment involved certain disputes regarding the income declared by the HUF for the year 2015-16, which led to the filing of this appeal.

Vivad Se Vishwas Scheme, 2020

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme (VSVS), 2020, which aimed to reduce litigation and settle pending tax disputes by providing taxpayers with an opportunity to settle their disputes by paying a determined amount. In response to this scheme, the appellant chose to opt for the dispute resolution mechanism provided under the VSVS.

On 25th December 2020, the appellant, through its counsel Mr. Rajesh Malhotra, filed an application before the Tribunal, expressing the decision to withdraw the appeal after opting for the Vivad Se Vishwas Scheme. The appellant had filed Form No. 1 and Form No. 2 under the scheme and requested that the appeal be dismissed as withdrawn, with the liberty to recall the order in case Form No. 3 (which is the certificate of settlement) was not issued by the competent authority.

Tribunal’s Order

The Tribunal, presided over by Shri H.S. Sidhu, Judicial Member, heard the matter through video conferencing on 31st December 2020. The Department was represented by Senior Departmental Representative (DR) Shri Prakash Dubey, who did not object to the appellant’s request for withdrawal of the appeal.

Considering the appellant’s application and the non-objection from the Department, the Tribunal decided to allow the withdrawal of the appeal. The order clarified that the withdrawal was with liberty to the appellant to move an application for recalling the order if Form No. 3 was not issued by the competent authority. The Tribunal emphasized that the matter would be decided as per the law if such an application were to be filed.

Consequently, the appeal was dismissed as withdrawn on the basis of the appellant’s participation in the Vivad Se Vishwas Scheme, and the Tribunal’s order was pronounced on the same day, 31st December 2020.

Conclusion

The case of Ramesh Kumar Upadhya (HUF), Ghaziabad vs ACIT Circle-2, Ghaziabad for the assessment year 2015-16 exemplifies the utilization of the Vivad Se Vishwas Scheme, 2020, by taxpayers to settle ongoing tax disputes. The scheme provided a pathway for the appellant to resolve the dispute amicably, thereby reducing the burden of litigation.

This case highlights the effectiveness of the Vivad Se Vishwas Scheme in offering taxpayers a chance to settle disputes and the Tribunal’s role in facilitating such resolutions by allowing the withdrawal of appeals. It also serves as a reminder that such withdrawals are conditional, with the option to recall the order if the settlement process under the scheme is not completed as anticipated.

The final judgment in this case underscores the importance of alternative dispute resolution mechanisms in tax matters, which can bring about quicker resolutions and reduce the backlog of cases pending before judicial authorities. It also demonstrates the ITAT’s adaptability in responding to government initiatives aimed at reducing litigation.

Ramesh Kumar Upadhya (HUF), Ghaziabad vs ACIT Circle-2, Ghaziabad: Withdrawal Under Vivad Se Vishwas Scheme for AY 2015-16