Refex Energy (Rajasthan) Pvt Ltd Opts for Vivad Se Vishwas Scheme in Tax Dispute – ITA 6584/DEL/2019

Refex Energy (Rajasthan) Pvt Ltd vs ITO: Withdrawal of Appeal Under Vivad Se Vishwas Scheme – ITA 6584/DEL/2019

In the case of Refex Energy (Rajasthan) Pvt Ltd vs Income Tax Officer, Ward-21(2), New Delhi, the appellant, Refex Energy (Rajasthan) Pvt Ltd, opted to withdraw its appeal in favor of settling the tax dispute under the Vivad Se Vishwas Scheme, 2020. This case pertains to the assessment year 2015-16, and the appeal was originally filed on August 8, 2019, before the Income Tax Appellate Tribunal (ITAT) under the case number ITA 6584/DEL/2019.

Background of the Case

Refex Energy (Rajasthan) Pvt Ltd, a company engaged in the business of renewable energy, filed an appeal against the order of the Commissioner of Income Tax (Appeals)-38, New Delhi, dated July 16, 2019. The dispute was related to certain tax arrears for the assessment year 2015-16. The company challenged the assessment made by the Income Tax Officer (ITO), Ward-21(2), New Delhi, concerning various adjustments and disallowances that affected its tax liability.

The appeal was scheduled for hearing on December 14, 2020, before the Delhi Bench ‘A’ of the ITAT, which included Vice President Shri G.S. Pannu and Judicial Member Shri Amit Shukla. The proceedings were conducted through video conferencing due to the prevailing circumstances related to the COVID-19 pandemic.

The Vivad Se Vishwas Scheme

The Vivad Se Vishwas Scheme, introduced by the Government of India in 2020, was designed to resolve long-standing tax disputes by offering taxpayers the opportunity to settle their disputes by paying a reduced amount of tax and, in return, obtaining immunity from further litigation. The scheme aimed to reduce the burden on the judicial system and offer taxpayers a chance to resolve disputes quickly and efficiently.

In the case of Refex Energy (Rajasthan) Pvt Ltd, the company chose to take advantage of this scheme to settle its tax arrears. The company’s decision was formalized through a letter dated December 9, 2020, which was submitted to the ITAT via email. The letter stated that the company had opted to settle the dispute under the Vivad Se Vishwas Scheme and requested the withdrawal of the appeal.

Proceedings and Decision

During the virtual hearing on December 14, 2020, the company’s counsel, Shri Manish Kumar Jha, confirmed the decision to withdraw the appeal. He provided the necessary documentation, including a certificate issued under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, which indicated that the settlement process under the scheme had been initiated.

The Senior Departmental Representative (DR), Shri Jagdish Singh, representing the Revenue, raised no objections to the withdrawal request.

After considering the submissions and the documentation provided, the ITAT bench, comprising Vice President Shri G.S. Pannu and Judicial Member Shri Amit Shukla, accepted the request for withdrawal of the appeal. The Tribunal noted that since the appellant had opted for the Vivad Se Vishwas Scheme, there was no further need to continue with the appeal process.

Conclusion

The ITAT ruled that the appeal filed by Refex Energy (Rajasthan) Pvt Ltd for the assessment year 2015-16 under case number ITA 6584/DEL/2019 was dismissed as withdrawn. This decision was announced immediately after the virtual hearing on December 14, 2020, in the presence of both parties.

This case highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes swiftly and amicably. By opting for the scheme, Refex Energy (Rajasthan) Pvt Ltd was able to settle its tax liabilities for the assessment year 2015-16 without the need for prolonged litigation, thereby benefiting from the reduced tax payment and avoiding further legal complexities.

Refex Energy (Rajasthan) Pvt Ltd Opts for Vivad Se Vishwas Scheme in Tax Dispute – ITA 6584/DEL/2019