Sachin Arora vs DCIT Central Circle, Ghaziabad: Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2017-18

Case Overview: Sachin Arora vs DCIT Central Circle, Ghaziabad

Case Number: ITA 6223/DEL/2019

Appellant: Sachin Arora, New Delhi

Respondent: DCIT Central Circle, Ghaziabad

Assessment Year: 2017-18

Case Filed On: 2019-07-22

Order Type: Final Tribunal Order

Date of Order: 2022-06-07

Pronounced On: 2022-06-07

Introduction

The case of Sachin Arora vs DCIT Central Circle, Ghaziabad pertains to an appeal filed by Sachin Arora, a resident of New Delhi, challenging an order passed under Section 271(1)(b) of the Income Tax Act, 1961, for the assessment year 2017-18. The appeal was later withdrawn by the appellant under the provisions of the Vivad Se Vishwas Scheme, 2020 (VSV). The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘G’, accepted the withdrawal of the appeal with the provision that the appellant could seek reinstatement if necessary.

Background of the Case

The appellant, Sachin Arora, had filed an appeal against the order of the Commissioner of Income Tax (Appeals)-IV, Kanpur, dated 30.04.2019. The order was issued under Section 271(1)(b) of the Income Tax Act, 1961, which pertains to the imposition of penalties for failure to comply with notices or orders issued under the Act.

During the proceedings, the appellant decided to withdraw the appeal after opting to resolve the tax dispute under the Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the government to provide a resolution mechanism for pending direct tax disputes by offering taxpayers an opportunity to settle disputes by paying a certain percentage of the tax arrears, with the benefit of waivers on interest and penalties.

Proceedings Before the Tribunal

The appeal was scheduled for hearing on 30.05.2022 before the ITAT, Delhi Bench ‘G’. During the hearing, the appellant’s counsel, Shri Deepesh Garg, informed the tribunal that the appellant had opted for the Vivad Se Vishwas Scheme and no longer wished to pursue the appeal. The counsel requested the tribunal to allow the withdrawal of the appeal.

The Departmental Representative, Shri Abhishek Kumar, representing the Revenue, raised no objections to the appellant’s request for withdrawal. Given the circumstances, the tribunal found it appropriate to dismiss the appeal as withdrawn, acknowledging the appellant’s decision to avail the benefits of the VSV Scheme.

Tribunal’s Decision

The order was delivered by Accountant Member Shri Pradip Kumar Kedia and Judicial Member Shri Saktijit Dey on 07.06.2022. The tribunal dismissed the appeal as withdrawn, allowing the appellant to resolve the dispute through the Vivad Se Vishwas Scheme. The tribunal also provided a provision that, in the event the appellant is unable to avail the benefits of the VSV Scheme for any bona fide reasons, the appellant may seek the restoration of the original appeal for hearing before the ITAT in accordance with the law.

This decision underscores the flexibility provided by the tribunal in accommodating taxpayers who choose to resolve their disputes through the Vivad Se Vishwas Scheme. By allowing the possibility of reinstating the appeal if the settlement is not achieved under the scheme, the tribunal ensures that the appellant retains the right to contest the issue if necessary.

Conclusion

The case of Sachin Arora vs DCIT Central Circle, Ghaziabad highlights the importance of the Vivad Se Vishwas Scheme, 2020, as a tool for resolving tax disputes in a timely and efficient manner. By opting for the scheme, the appellant was able to withdraw the appeal and settle the dispute without the need for prolonged litigation.

This case also serves as a reminder to taxpayers of the benefits offered by the VSV Scheme, including waivers on penalties and interest, which can provide significant relief in cases of pending tax disputes. However, it also illustrates the tribunal’s willingness to accommodate requests for withdrawal while providing safeguards for appellants in case the settlement is not achieved.

Final Tribunal Order

The final order, pronounced on June 7, 2022, by Accountant Member Shri Pradip Kumar Kedia and Judicial Member Shri Saktijit Dey, officially dismissed the appeal filed by Sachin Arora as withdrawn. The tribunal’s order concluded the case, with the provision for the appellant to seek reinstatement of the appeal if the dispute is not resolved under the Vivad Se Vishwas Scheme.

Order Pronounced in the Open Court on 7th June, 2022.

Judicial Member: Saktijit Dey

Accountant Member: Pradip Kumar Kedia

Sachin Arora vs DCIT Central Circle, Ghaziabad: Withdrawal of Appeal under Vivad Se Vishwas Scheme for AY 2017-18