ITA No. 481/DEL/2019 represents a significant case involving Grohe India Pvt. Ltd., where the company opted to settle tax disputes under the Vivad Se Vishwas Scheme for the assessment year 2013-14. This case, filed on January 23, 2019, concluded with a withdrawal on January 22, 2021, marking a pivotal moment in the landscape of tax litigation in India.
The appeal was lodged by Grohe India against the order of CIT(A)-44, Delhi dated October 26, 2018. The primary issues revolved around disputed tax arrears which Grohe India sought to resolve efficiently and expediently, leading to their decision to embrace the Vivad Se Vishwas Scheme, a government initiative aimed at reducing litigation in direct tax payments.
The final hearing, conducted via video conferencing due to the pandemic restrictions, took place on January 22, 2021. The counsel for Grohe India, Mr. Rishabh Malhotra, submitted a request for withdrawal of the appeal, citing their participation in the Vivad Se Vishwas Scheme. This move was supported by the provision of a certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, signaling the company’s commitment to resolve the dispute amicably.
The decision to withdraw the appeal highlights the practical application of the Vivad Se Vishwas Scheme in resolving long-standing disputes without further litigation. This case serves as a precedent for other corporations facing similar fiscal disputes, offering a pathway to legal and financial closure without enduring the protracted processes typical of tax litigation.
The case of ITA No. 481/DEL/2019 is a testament to the effectiveness of alternative dispute resolution mechanisms in tax matters, specifically through government schemes like Vivad Se Vishwas. Grohe India Pvt. Ltd.’s decision to settle under this scheme not only expedited the resolution of their tax disputes but also demonstrated the potential benefits of such government initiatives in fostering a cooperative relationship between taxpayers and the tax authorities.
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