Rekha Goyal vs DCIT Circle-I, Moradabad: Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2014-15

Case Overview: Rekha Goyal vs DCIT Circle-I, Moradabad

Case Number: ITA 6217/DEL/2019

Appellant: Rekha Goyal, New Delhi

Respondent: DCIT Circle-I, Moradabad

Assessment Year: 2014-15

Case Filed On: 2019-07-22

Order Type: Final Tribunal Order

Date of Order: 2020-07-10

Pronounced On: 2020-07-10

Introduction

The case of Rekha Goyal vs DCIT Circle-I, Moradabad pertains to an appeal filed by the appellant, Rekha Goyal, challenging the assessment order for the assessment year 2014-15. The appellant later opted to resolve the dispute under the Vivad Se Vishwas Scheme, 2020, leading to the withdrawal of the appeal. The Income Tax Appellate Tribunal (ITAT), Delhi Bench, dismissed the appeal on July 10, 2020.

Background

Rekha Goyal, a resident of New Delhi, filed an appeal against the assessment order passed by the Deputy Commissioner of Income Tax (DCIT), Circle-I, Moradabad, for the assessment year 2014-15. The appeal was directed against the order of the learned Commissioner of Income Tax (Appeals), Moradabad, dated 25th June 2019.

However, during the pendency of the appeal, the Government of India introduced the Direct Tax Vivad Se Vishwas Act, 2020, which provided taxpayers an opportunity to settle their tax disputes by paying a percentage of the disputed tax and obtaining immunity from penalty and interest.

Vivad Se Vishwas Scheme and Withdrawal of Appeal

On 26th June 2020, Rekha Goyal, through her counsel, submitted a request via email to withdraw the appeal, stating that she had opted to settle the dispute under the Vivad Se Vishwas Scheme. A certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, confirming the settlement, was also submitted to the ITAT.

The Vivad Se Vishwas Scheme was introduced to reduce litigation and provide a mechanism for taxpayers to settle their disputes with the Income Tax Department. Under the scheme, taxpayers could pay the disputed tax amount without additional penalties or interest, thereby concluding the litigation process. Rekha Goyal’s decision to opt for this scheme reflected her intent to resolve the matter amicably without further legal proceedings.

Proceedings Before the ITAT

The appeal was scheduled for hearing on 10th July 2020 before the Friday Bench of the ITAT, Delhi, through video conferencing. The Bench comprised Vice President Shri G.S. Pannu and Judicial Member Shri Sudhanshu Srivastava. During the hearing, Rekha Goyal’s counsel reiterated the request for withdrawal of the appeal, citing the settlement under the Vivad Se Vishwas Scheme.

The learned Senior Departmental Representative (DR), Shri Jagdish Singh, representing the Revenue, had no objections to the withdrawal of the appeal. The ITAT acknowledged the request and verified the validity of the settlement certificate submitted by Rekha Goyal.

Tribunal’s Decision

After considering the submissions and the certificate under the Vivad Se Vishwas Scheme, the ITAT accepted Rekha Goyal’s request for withdrawal. The tribunal noted that since the appellant had opted for the scheme and settled the tax arrears, there was no longer a need to adjudicate the appeal on its merits.

The tribunal, therefore, dismissed the appeal as withdrawn. The decision was announced in the virtual hearing on 10th July 2020, in the presence of both parties.

Conclusion

The case of Rekha Goyal vs DCIT Circle-I, Moradabad is a testament to the effectiveness of the Vivad Se Vishwas Scheme in reducing tax litigation and providing taxpayers with an efficient method to settle disputes. By opting for the scheme, Rekha Goyal was able to resolve her tax issues for the assessment year 2014-15 without further prolonging the litigation process.

This case highlights the importance of alternative dispute resolution mechanisms in the tax system, which not only benefit taxpayers by providing a clear and expedient resolution but also help in reducing the backlog of cases in the judicial system. The ITAT’s acceptance of the withdrawal under the Vivad Se Vishwas Scheme underscores the tribunal’s role in facilitating the settlement of disputes in line with government policies.

As tax litigation continues to be a challenge for both taxpayers and the government, schemes like Vivad Se Vishwas provide a pragmatic approach to resolving disputes and ensuring that tax collections are streamlined without the need for prolonged legal battles. The successful resolution of this case under the scheme serves as an example for other taxpayers facing similar disputes.

Final Tribunal Order

The final order, pronounced on July 10, 2020, by Vice President Shri G.S. Pannu and Judicial Member Shri Sudhanshu Srivastava, dismissed the appeal as withdrawn.

Order Pronounced in the Virtual Hearing on 10/07/2020.

Judicial Member: Sudhanshu Srivastava

Vice President: G.S. Pannu

Rekha Goyal vs DCIT Circle-I, Moradabad: Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2014-15