Savitri Suneja vs. ACIT: Appeal Dismissal Under Vivad Se Vishwas Scheme for AY 2011-12

Case Overview

The case of Savitri Suneja vs. ACIT, Circle-47(1), New Delhi (ITA No. 6380/DEL/2019) pertains to the appeal filed by the assessee, Savitri Suneja, concerning the assessment year 2011-12. The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench “SMC-2” on 6th January 2021 through video conferencing. The appeal was ultimately dismissed under the provisions of the Vivad Se Vishwas Scheme, 2020, which was introduced to resolve pending tax disputes.

Background of the Case

Savitri Suneja, a resident of Delhi, had filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)-16, New Delhi, for the assessment year 2011-12. The appeal was brought before the ITAT, challenging the decision made by the tax authorities regarding her income tax assessment. The details of the specific grounds of the appeal are not disclosed in the final order, as the case took a turn towards resolution through the Vivad Se Vishwas Scheme.

Why the Case Was Filed

The appeal was initially filed by Savitri Suneja to contest the assessment order issued by the ACIT, Circle-47(1), New Delhi. While the exact reasons for filing the appeal are not specified in the order, it is common for taxpayers to appeal against assessments that they believe are incorrect or unjust. The grounds for such appeals often include disputes over the amount of taxable income, deductions, exemptions, or penalties imposed by the tax authorities.

In this case, Savitri Suneja sought to challenge the assessment for the year 2011-12. However, as the case progressed, the introduction of the Vivad Se Vishwas Scheme provided an alternative route for resolving the dispute, leading to the withdrawal of the appeal.

The Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme, 2020, was introduced by the Indian government as a one-time opportunity for taxpayers to settle their pending disputes with the income tax department. The scheme offered taxpayers the chance to pay their disputed taxes and obtain immunity from interest, penalties, and prosecution. The scheme aimed to reduce litigation and expedite the resolution of tax disputes.

Under this scheme, taxpayers could declare their disputed tax amounts by filing Forms 1 and 2. Upon approval, the tax authorities would issue Form 3, confirming the settlement, and the taxpayer could withdraw any ongoing appeals related to the dispute.

Tribunal Proceedings

The case of Savitri Suneja was scheduled for hearing on 6th January 2021. However, none appeared on behalf of the assessee during the virtual hearing. Instead, an application was filed by the assessee seeking permission to withdraw the appeal. The withdrawal was based on the fact that Savitri Suneja had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. The application mentioned that the required forms (Form No. 1 & 2) had already been filed, and Form 3, confirming the settlement, had been issued by the tax authorities.

The representative for the Revenue, Ms. Shivani Bansal, Senior Departmental Representative (DR), had no objection to the withdrawal of the appeal under these circumstances.

Tribunal’s Decision

Considering the situation, the ITAT Delhi Bench, led by Hon’ble Accountant Member Shri R.K. Panda, decided to dismiss the appeal filed by Savitri Suneja. The dismissal was made on the grounds that the dispute had been settled under the Vivad Se Vishwas Scheme, 2020. The tribunal acknowledged the submission that Form 3 had been issued, indicating the acceptance of the settlement under the scheme.

The tribunal’s order also included a caveat: if the dispute relating to the tax arrears for the assessment year 2011-12 was not ultimately resolved under the scheme, Savitri Suneja would have the liberty to approach the tribunal for the reinstitution of the appeal. This caveat ensured that the appellant’s rights were protected in case the settlement under the scheme did not proceed as planned.

The tribunal concluded by dismissing the appeal and consigning it to the record, effectively marking the case as resolved under the Vivad Se Vishwas Scheme, 2020.

Significance of the Case

The case of Savitri Suneja vs. ACIT highlights the utility of the Vivad Se Vishwas Scheme, 2020, in resolving long-standing tax disputes. The scheme provided a mechanism for taxpayers to settle disputes efficiently, avoiding prolonged litigation and potential penalties.

This case also illustrates how the legal process accommodates alternative dispute resolution mechanisms like the Vivad Se Vishwas Scheme. The tribunal’s willingness to dismiss the appeal and allow for potential reinstitution if the settlement fell through demonstrates the flexibility and fairness of the judicial process.

For taxpayers, the case serves as a reminder of the importance of considering schemes like Vivad Se Vishwas when dealing with tax disputes. Such schemes can provide a more straightforward path to resolution, saving time, money, and stress associated with prolonged litigation.

Conclusion

The case of Savitri Suneja vs. ACIT, Circle-47(1), New Delhi (ITA No. 6380/DEL/2019) was effectively resolved through the Vivad Se Vishwas Scheme, 2020. The appeal for the assessment year 2011-12 was dismissed by the ITAT after the appellant chose to settle the dispute under the scheme.

This resolution underscores the benefits of using government-initiated schemes to settle tax disputes and the supportive role of the judicial process in facilitating such settlements. By opting for the Vivad Se Vishwas Scheme, Savitri Suneja was able to bring closure to her tax dispute, demonstrating the practical advantages of such schemes for taxpayers facing similar situations.

Overall, the case serves as a precedent for the effective application of the Vivad Se Vishwas Scheme, providing valuable insights for both taxpayers and tax professionals navigating the complexities of tax disputes.

Savitri Suneja vs. ACIT: Appeal Dismissal Under Vivad Se Vishwas Scheme for AY 2011-12