Resolution of Tax Dispute: Gajraj vs. ITO Ward-1, Rewari (ITA 6164/DEL/2019)

Introduction

The case ITA No. 6164/DEL/2019 involves a tax dispute between Gajraj, a resident of Rewari, Haryana, and the Income Tax Officer (ITO) Ward-1, Rewari. This case, concerning the assessment year 2011-12, was ultimately resolved under the Vivad Se Vishwas Scheme, reflecting the government’s initiative to settle pending tax disputes and reduce litigation.

Background of the Case

Gajraj, a taxpayer based in Rewari, encountered issues regarding the assessment of his income for the year 2011-12. The initial assessment, conducted by the ITO Ward-1, Rewari, resulted in discrepancies that were contested by Gajraj. Dissatisfied with the assessment, Gajraj appealed to the Commissioner of Income Tax (Appeals) in Rohtak. After the CIT(A) upheld the original assessment, the case was further escalated to the Income Tax Appellate Tribunal (ITAT).

Proceedings at the ITAT

The appeal was brought before the ITAT, where it was heard by a bench consisting of Shri G.S. Pannu, Vice President, and Ms. Suchitra Kamble, Judicial Member. The proceedings were conducted through video conferencing on 31 August 2021. During the virtual hearing, Gajraj’s legal counsel submitted a written request to withdraw the appeal, citing the taxpayer’s decision to settle the dispute under the Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the Indian government to encourage taxpayers to resolve their disputes amicably by paying a determined amount and avoiding prolonged litigation.

Tribunal’s Decision

The Tribunal accepted Gajraj’s request for withdrawal of the appeal and dismissed the case accordingly. The decision was straightforward, reflecting the successful application of the Vivad Se Vishwas Scheme. The withdrawal of the appeal marked the conclusion of the dispute for the assessment year 2011-12, underlining the effectiveness of the scheme in resolving tax-related conflicts.

Conclusion

The resolution of ITA No. 6164/DEL/2019 through the Vivad Se Vishwas Scheme highlights the importance of such government initiatives in providing taxpayers with a viable alternative to litigation. Gajraj’s case serves as a prime example of how taxpayers can benefit from these schemes to resolve their disputes efficiently and amicably. This outcome not only provided relief to Gajraj but also contributed to reducing the backlog of cases in the Indian tax system, promoting a more streamlined and effective dispute resolution process.

Resolution of Tax Dispute: Gajraj vs. ITO Ward-1, Rewari (ITA 6164/DEL/2019)