Resolution of Tax Dispute via Vivad Se Vishwas: The Case of Rakesh Chharia vs. ACIT, ITA No. 6037/DEL/2019

Case Overview

The case involves Rakesh Chharia from Ghaziabad, who filed an appeal against the tax assessment by ACIT, Circle-1, Moradabad for the assessment year 2015-16. This appeal was withdrawn in favor of settling under the Vivad Se Vishwas Scheme.

Background

The dispute originated from the assessment order dated June 21, 2019, which led to the filing of an appeal. Subsequently, Rakesh Chharia chose to settle the dispute through the Vivad Se Vishwas Scheme, aimed at reducing litigation in tax disputes.

Legal Proceedings and Settlement

The virtual hearing took place on March 25, 2021, during which it was noted that no one appeared on behalf of the appellant, but a letter indicated his decision to withdraw the appeal and settle the dispute. This decision was supported by a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020.

Implications of the Decision

This case highlights the effectiveness of the Vivad Se Vishwas Scheme as a mechanism for resolving tax disputes amicably. It provides a significant example of how taxpayers can avoid lengthy and costly legal disputes by opting for government-sponsored settlement schemes.

Resolution of Tax Dispute via Vivad Se Vishwas: The Case of Rakesh Chharia vs. ACIT, ITA No. 6037/DEL/2019