Rudawal Capital Trust vs ITO – Withdrawal of Appeal Under Vivad Se Vishwas Scheme for AY 2015-16

Case Overview: Rudawal Capital Trust Ltd vs ITO Ward-21(4), New Delhi – AY 2015-16

This article provides an in-depth analysis of the proceedings and final judgment in the Income Tax Appellate Tribunal (ITAT) Delhi, in the case of Rudawal Capital Trust Ltd vs ITO Ward-21(4), New Delhi. The case is identified by the case number ITA 6691/DEL/2019 and pertains to the assessment year 2015-16. The final order was pronounced on January 12, 2021.

Background of the Case

Rudawal Capital Trust Ltd, a company based in New Delhi, filed an appeal against the order of the Commissioner of Income-tax (Appeals)-38, New Delhi, dated June 28, 2019. The appeal was related to certain tax disputes for the assessment year 2015-16. However, during the course of the proceedings, the appellant decided to settle the dispute under the Vivad Se Vishwas Scheme, 2020.

Why the Case Was Filed

The appeal was originally filed by Rudawal Capital Trust Ltd to contest the tax demand and assessment order passed by the ITO Ward-21(4), New Delhi. The appellant believed that the assessment contained errors or unjust demands, leading them to seek relief from the higher judicial authority, the ITAT.

Proceedings Before the ITAT

The case was scheduled for a virtual hearing before a bench comprising Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member. The hearing was held through video conferencing due to the ongoing pandemic.

The Appellant’s Withdrawal Request

Before the scheduled hearing, the legal representative of Rudawal Capital Trust Ltd, Shri Kapil Goel, Advocate, informed the Tribunal via email on January 7, 2021, of the appellant’s decision to withdraw the appeal. The reason for this withdrawal was the appellant’s decision to opt for the Vivad Se Vishwas Scheme, 2020, a government initiative aimed at reducing litigation by allowing taxpayers to settle their tax disputes by paying a reduced amount of tax arrears.

In support of this decision, the appellant submitted a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020. This certificate indicated that the appellant had successfully applied to settle the dispute and that the process was in compliance with the provisions of the scheme.

The Revenue’s Stance

The Senior Departmental Representative (DR), Shri Prakash Dubey, who was representing the Revenue, raised no objections to the appellant’s request to withdraw the appeal. The Revenue accepted the appellant’s choice to resolve the matter under the Vivad Se Vishwas Scheme, acknowledging the benefits of reducing the burden of litigation.

Final Decision of the ITAT

After considering the appellant’s request and the Revenue’s lack of objection, the ITAT bench, comprising Shri G.S. Pannu and Shri Sudhanshu Srivastava, accepted the withdrawal of the appeal. The Tribunal acknowledged that the appellant had opted for a government-approved dispute resolution mechanism and therefore saw no reason to continue with the appeal.

1. Dismissal of the Appeal

The ITAT formally dismissed the appeal filed by Rudawal Capital Trust Ltd as withdrawn. The dismissal was in accordance with the request made by the appellant and was consistent with the provisions of the Vivad Se Vishwas Scheme, 2020. The Tribunal’s order confirmed that the appeal was dismissed as of January 12, 2021.

2. The Significance of Vivad Se Vishwas Scheme

The Vivad Se Vishwas Scheme, introduced by the Indian government in 2020, plays a crucial role in reducing the volume of tax litigation in the country. Under this scheme, taxpayers with pending disputes can settle their cases by paying a percentage of the disputed tax amount. This initiative has been widely welcomed by both taxpayers and tax authorities as it offers a swift and effective resolution of long-standing disputes.

In this particular case, the decision by Rudawal Capital Trust Ltd to avail of the Vivad Se Vishwas Scheme demonstrates the effectiveness of the scheme in providing a mutually agreeable solution to tax disputes. By opting for this scheme, the appellant was able to resolve the matter without further litigation, saving both time and resources for all parties involved.

Conclusion of the Case

The dismissal of the appeal by the ITAT in the case of Rudawal Capital Trust Ltd vs ITO Ward-21(4), New Delhi, marks the successful closure of a tax dispute for the assessment year 2015-16. The appellant’s decision to withdraw the appeal under the Vivad Se Vishwas Scheme highlights the importance of this government initiative in streamlining the resolution of tax disputes in India.

This case serves as an example for other taxpayers who may be considering whether to continue with lengthy litigation or to opt for a more expedient resolution through schemes like Vivad Se Vishwas. It also underscores the role of the ITAT in ensuring that such withdrawals are processed smoothly, thereby contributing to the overall efficiency of the tax dispute resolution process.

In summary, the case of Rudawal Capital Trust Ltd vs ITO Ward-21(4), New Delhi, underscores the practical benefits of the Vivad Se Vishwas Scheme and serves as a precedent for the dismissal of appeals where the taxpayer opts to settle disputes under this or similar schemes in the future.

Rudawal Capital Trust vs ITO – Withdrawal of Appeal Under Vivad Se Vishwas Scheme for AY 2015-16