The case of ITA 818/DEL/2019 brings to light the resolution of a tax dispute involving Sh. Raj Kumar of New Delhi, and the Income Tax Officer, Ward-41(4), for the assessment year 2011-12. This dispute resolution showcases the application of the Direct Tax Vivad Se Vishwas Act, 2020, a significant legislative tool aimed at reducing litigation in the realm of direct taxes in India.
The appeal was filed against the order of the Commissioner of Income Tax (Appeals)-14, New Delhi, dated 29.11.2018. The primary contention in the appeal was related to discrepancies noted by the tax authorities in the financial statements of the appellant, leading to a prolonged dispute.
In a notable development, the assessee opted to settle the dispute under the Direct Tax Vivad Se Vishwas Act, 2020. The Act, introduced to provide a mechanism for the settlement of pending tax disputes, allows taxpayers to settle disputes without further litigation and consequent strain on judicial resources. According to the proceedings, a declaration was accepted by the designated authority, and Form-5 was issued on 13th September 2021, effectively settling the dispute.
The Tribunal permitted the withdrawal of the appeal, leading to the dismissal of the case as withdrawn. This resolution under the Vivad Se Vishwas Act underscores the Act’s role in fostering a non-adversarial tax environment and reducing pending litigation in the tax domain.
This case serves as a significant precedent for similar tax disputes, highlighting the benefits of opting for dispute resolution mechanisms provided by the government, which ensure a quicker and less adversarial resolution process. The dismissal of the appeal post-acceptance of the settlement offer illustrates the practical application of the Vivad Se Vishwas Act in real-world scenarios, providing a roadmap for other taxpayers facing similar disputes.
The dismissal of ITA 818/DEL/2019 post-settlement under the Vivad Se Vishwas Act provides a clear example of how legislative tools designed to simplify and expedite the resolution of tax disputes can be effectively utilized. It reinforces the importance of these mechanisms in the current tax landscape in India, promoting a culture of compliance and cooperation between taxpayers and the authorities.
Resolution of ITA 818/DEL/2019 Under the Direct Tax Vivad Se Vishwas Act
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