Religare Securities Ltd. vs DCIT Circle 21(1), New Delhi: Appeal Withdrawn Under Vivad Se Vishwas Scheme for Assessment Year 2015-16

Religare Securities Ltd. vs DCIT Circle 21(1), New Delhi: Appeal Withdrawn Under Vivad Se Vishwas Scheme for Assessment Year 2015-16

Case Number: ITA 6117/DEL/2019

Appellant: Religare Securities Ltd., New Delhi

Respondent: DCIT Circle 21(1), New Delhi

Assessment Year: 2015-16

Order Type: Final Tribunal Order

Date of Order: 29th September 2021

Case Filed On: 18th July 2019

Pronounced On: 29th September 2021

Background of the Case

Religare Securities Ltd., a prominent financial services company based in New Delhi, filed an appeal against the Deputy Commissioner of Income Tax (DCIT), Circle 21(1), New Delhi, for the assessment year 2015-16. This appeal, under case number ITA 6117/DEL/2019, was directed against an order passed by the Commissioner of Income Tax (Appeals)-7 [CIT(A)], New Delhi, dated 26th June 2019.

The appellant had initially challenged the assessment order passed by the DCIT, which had resulted in certain tax-related disputes. These disputes were brought before the Income Tax Appellate Tribunal (ITAT) for resolution. However, a significant development during the proceedings led to the withdrawal of the appeal.

Grounds for Filing the Appeal

Religare Securities Ltd. filed the appeal to contest the assessment order that included certain tax adjustments made by the DCIT. The company believed that these adjustments were not in accordance with the provisions of the Income Tax Act, 1961, and sought relief from the tribunal.

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme, 2020, a tax dispute resolution scheme designed to reduce the burden of pending litigation. The scheme offered taxpayers the opportunity to settle their disputes by paying a specified amount of the disputed tax, thereby receiving immunity from further interest, penalties, and prosecution.

Tribunal Proceedings

The case was listed for hearing before the Delhi Bench ‘E’ of the Income Tax Appellate Tribunal (ITAT) on 29th September 2021. The bench comprised of Judicial Member Ms. Suchitra Kamble and Accountant Member Shri R.K. Panda. The appellant did not appear for the hearing, but a letter was submitted by the appellant’s counsel on 25th August 2021, indicating the appellant’s decision to withdraw the appeal under the Vivad Se Vishwas Scheme.

The appellant’s counsel informed the tribunal that Religare Securities Ltd. had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020, and a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, had been issued in favor of the appellant. In light of this development, the appellant requested the withdrawal of the appeal.

Final Tribunal Order

Upon considering the request, the tribunal accepted the withdrawal of the appeal. The tribunal noted that since the dispute had been resolved under the Vivad Se Vishwas Scheme, there was no need for further adjudication on the matter.

Accordingly, the tribunal dismissed the appeal as withdrawn, bringing the case to a formal conclusion. The order was pronounced during the virtual hearing held on 29th September 2021.

Conclusion

The case of Religare Securities Ltd. vs DCIT Circle 21(1), New Delhi, is an example of the effective use of the Vivad Se Vishwas Scheme to resolve tax disputes. By opting for this scheme, the appellant was able to settle the dispute efficiently, thereby avoiding prolonged litigation. The tribunal’s decision to dismiss the appeal as withdrawn highlights the success of the scheme in reducing the backlog of tax-related cases.

This case serves as a reference point for other taxpayers considering the Vivad Se Vishwas Scheme as a viable option for settling tax disputes. It emphasizes the benefits of alternative dispute resolution mechanisms introduced by the government, which promote a more cooperative and less contentious tax environment.

Note: The above summary provides an overview of the tribunal proceedings and the final order in the case of Religare Securities Ltd. For a more detailed understanding, interested parties are encouraged to refer to the full text of the tribunal’s order dated 29th September 2021.

Sd/-
(R.K. PANDA)
ACCOUNTANT MEMBER

Sd/-
(SUCHITRA KAMBLE)
JUDICIAL MEMBER

Assistant Registrar

Religare Securities Ltd. vs DCIT Circle 21(1), New Delhi: Appeal Withdrawn Under Vivad Se Vishwas Scheme for Assessment Year 2015-16