Saheb Sahni vs ITO Ward-51(5) New Delhi – Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2015-16

Case Overview: Saheb Sahni vs ITO Ward-51(5), New Delhi – AY 2015-16

This article discusses the proceedings and final decision in the case of Saheb Sahni, New Delhi (the appellant), versus the Income Tax Officer (ITO), Ward-51(5), New Delhi (the respondent), regarding the assessment year (AY) 2015-16. The case was filed under case number ITA 6684/DEL/2019. The appeal was eventually withdrawn by the appellant under the Direct Tax Vivad Se Vishwas Scheme, 2020, and the final order was pronounced by the Income Tax Appellate Tribunal (ITAT) on February 18, 2021.

Background of the Case

Saheb Sahni, a resident of New Delhi, filed an appeal against the assessment order passed by the ITO Ward-51(5) for AY 2015-16. The appeal was directed against the decision of the Commissioner of Income Tax (Appeals)-17, Delhi. The appellant sought to challenge the tax arrears determined by the assessing officer for the said assessment year.

However, during the appellate proceedings, the appellant decided to opt for the Direct Tax Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the Indian government to resolve pending tax disputes. The scheme allowed taxpayers to settle disputes by paying the tax arrears without incurring any interest or penalty. Additionally, the scheme facilitated the withdrawal of appeals pending before various appellate forums, including the ITAT.

Why the Case Was Filed

The case was initially filed by Saheb Sahni to challenge the assessment order passed by the ITO Ward-51(5), New Delhi, for AY 2015-16. The appellant aimed to contest the tax liability imposed by the assessing officer. However, specific details regarding the grounds of the appeal and the issues raised by the appellant were not elaborated in the tribunal’s final order, as the appeal was withdrawn before substantial arguments were presented.

Proceedings Before the ITAT

The matter was presented before the ITAT Delhi Bench ‘SMC-1’ on February 18, 2021. The bench consisted of Shri Bhavnesh Saini, Judicial Member, and Shri O.P. Kant, Accountant Member, who presided over the virtual hearing.

At the hearing, the appellant’s counsel, Shri P.N. Arora, CA, requested the withdrawal of the appeal on the grounds that the appellant had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. The appellant had already submitted Form No. 1 and 2 under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, with Form No. 3 still awaited.

Conditions of Withdrawal

The appellant, through his counsel, requested that the withdrawal be subject to a caveat. Specifically, if the dispute relating to the tax arrears for AY 2015-16 was not ultimately resolved under the Vivad Se Vishwas Scheme, the appellant reserved the right to approach the ITAT for the reinstitution of the appeal. The Tribunal agreed to consider any such application appropriately as per law, should the need arise.

Final Decision of the ITAT

After considering the request for withdrawal and noting that there was no objection from the respondent, Shri Ved Prakash, Senior Departmental Representative (DR), the ITAT bench accepted the appellant’s request to withdraw the appeal. Consequently, the tribunal dismissed the appeal as withdrawn, and the final order was pronounced on February 18, 2021.

Conclusion of the Case

The final order by the ITAT on February 18, 2021, marked the conclusion of the dispute between Saheb Sahni and the ITO Ward-51(5), New Delhi, for AY 2015-16. The tribunal acknowledged the appellant’s decision to settle the tax dispute under the Vivad Se Vishwas Scheme, resulting in the dismissal of the appeal.

This case serves as an example of how the Vivad Se Vishwas Scheme provides taxpayers with an opportunity to resolve long-standing tax disputes amicably and efficiently. By opting for this scheme, Saheb Sahni not only resolved his tax arrears but also avoided prolonged litigation, ensuring a faster and more straightforward resolution of his tax matters for AY 2015-16.

Implications for Future Disputes

The success of the Vivad Se Vishwas Scheme, as demonstrated in this case, underscores its importance as a mechanism for dispute resolution. Taxpayers with pending appeals should consider the benefits of this scheme, which allows for the settlement of disputes without additional costs such as interest and penalties. The scheme’s structure ensures finality, enabling taxpayers to focus on future compliance and business activities.

In conclusion, the ITAT’s order in the case of Saheb Sahni vs ITO Ward-51(5), New Delhi, highlights the significance of the Vivad Se Vishwas Scheme in resolving tax disputes efficiently. It emphasizes the need for taxpayers to explore available dispute resolution mechanisms and make informed decisions that align with their financial and business objectives.

Saheb Sahni vs ITO Ward-51(5) New Delhi – Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2015-16