Ravi Ranjan Agarwal vs ITO – Appeal Withdrawn Under Vivad Se Vishwas Scheme (Assessment Year 2014-15) – ITA No. 6201/DEL/2019

Case Analysis: Ravi Ranjan Agarwal vs ITO, Ward-72(5), New Delhi

Case Number: ITA 6201/DEL/2019

Appellant: Ravi Ranjan Agarwal, Delhi

Respondent: ITO, Ward-72(5), New Delhi

Assessment Year: 2014-15

Date of Filing: 22nd July 2019

Order Type: Final Tribunal Order

Date of Order: 25th September 2020

Date of Pronouncement: 25th September 2020

The case of Ravi Ranjan Agarwal vs. ITO, Ward-72(5), New Delhi, concerns the appeal filed by the assessee, Ravi Ranjan Agarwal, for the assessment year 2014-15. The appeal was filed against the order passed by the learned Commissioner of Income Tax (Appeals)-21, New Delhi, dated 23rd January 2017. However, during the proceedings, the appellant chose to withdraw the appeal under the provisions of the Vivad Se Vishwas Scheme, 2020, a scheme introduced by the Indian government to resolve tax disputes.

Background of the Case

Ravi Ranjan Agarwal, a resident of New Delhi, had filed an appeal with the Income Tax Appellate Tribunal (ITAT) against the order passed by the CIT(A) for the assessment year 2014-15. The appeal was in response to certain tax arrears assessed by the Income Tax Officer (ITO), Ward-72(5), New Delhi. The appellant was contesting the assessment and the subsequent demand raised by the tax authorities.

However, during the pendency of the appeal, the appellant decided to opt for the Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the Indian government as part of its efforts to reduce litigation and expedite the resolution of tax disputes. Under this scheme, taxpayers could settle their tax disputes by paying the disputed tax amounts and receive immunity from further legal proceedings related to those disputes.

Key Points in the Appeal

The appeal involved several key issues, including:

• The legitimacy of the tax demands raised by the ITO for the assessment year 2014-15.
• The grounds on which the appellant contested the assessment and subsequent demand.
• The appellant’s decision to withdraw the appeal under the Vivad Se Vishwas Scheme, 2020.

Tribunal Proceedings

The case was heard by the ITAT Delhi Friday Bench ‘A’, consisting of Shri G.S. Pannu, Vice President, and Shri K. Narasimha Chary, Judicial Member. The hearing took place on 25th September 2020, through video conferencing due to the ongoing COVID-19 pandemic.

Appellant’s Request for Withdrawal

During the proceedings, the appellant’s counsel, Shri Tarandeep Singh, Advocate, along with Shri Pulkit Verma, CA, submitted a letter dated 11th September 2020, requesting the withdrawal of the appeal. The letter stated that the appellant had opted to settle the tax dispute under the Vivad Se Vishwas Scheme, 2020. The counsel emphasized that the appellant had taken this step to resolve the matter amicably and avoid prolonged litigation.

Respondent’s Response

Shri M. Baranwal, the Senior Departmental Representative (DR), representing the Revenue, had no objection to the appellant’s request for withdrawal. He acknowledged the appellant’s decision to settle the dispute under the Vivad Se Vishwas Scheme and expressed the Revenue’s agreement to dismiss the appeal as withdrawn.

Tribunal’s Decision

The ITAT, after considering the appellant’s request and the lack of objection from the Revenue, decided to accept the withdrawal of the appeal. The Tribunal acknowledged that the appellant’s decision to opt for the Vivad Se Vishwas Scheme was a legitimate choice aimed at resolving the tax dispute without further litigation.

The Tribunal noted that the Vivad Se Vishwas Scheme was introduced to reduce the number of tax disputes pending in various forums and to provide a mechanism for taxpayers to settle their disputes with finality. The scheme offered taxpayers an opportunity to pay a reduced amount of the disputed tax and receive immunity from further proceedings related to the dispute.

In light of the appellant’s request and the Revenue’s consent, the Tribunal ordered the dismissal of the appeal as withdrawn. The Tribunal further observed that this decision was in line with the objectives of the Vivad Se Vishwas Scheme, which encouraged the resolution of tax disputes through mutual agreement.

Conclusion

The ITAT’s ruling in the case of Ravi Ranjan Agarwal vs. ITO, Ward-72(5), New Delhi, underscores the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. The scheme provides taxpayers with an alternative to prolonged litigation, allowing them to settle their disputes by paying the disputed taxes and avoiding further legal proceedings.

This case serves as an example of how taxpayers and the Revenue can reach an amicable resolution through the Vivad Se Vishwas Scheme, thereby reducing the burden on the judicial system and ensuring the timely resolution of tax disputes.

Order Pronounced: The appeal of the assessee, Ravi Ranjan Agarwal, is dismissed as withdrawn under the Vivad Se Vishwas Scheme, 2020.

Ravi Ranjan Agarwal vs ITO – Appeal Withdrawn Under Vivad Se Vishwas Scheme (Assessment Year 2014-15) – ITA No. 6201/DEL/2019