The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘SMC-2’ rendered a decision on March 8, 2021, in the case of DSV Coload & Clearance Pvt Ltd versus the Deputy Commissioner of Income Tax (DCIT), Circle-7(2), New Delhi, for the assessment year 2008-09. This case highlights the effectiveness of the Vivad Se Vishwas Scheme, aimed at reducing litigation in tax disputes.
DSV Coload & Clearance Pvt Ltd, previously known as Indair Carriers Pvt. Ltd, faced a tax dispute that was initially assessed for the year 2008-09. The dispute centered on specific financial discrepancies that were later addressed under the Vivad Se Vishwas Scheme, which allows for amicable dispute resolution between taxpayers and the tax authorities.
The appeal was brought before the ITAT after the initial assessments and corrections by the Pr. CIT(Appeals)-34. The company decided to settle the matter under the Vivad Se Vishwas Scheme, which was introduced by the Government of India to provide a mechanism for the resolution of pending tax disputes. The company’s decision to withdraw the appeal followed the acceptance of its application under the scheme, evidenced by the issuance of Form No. 3.
The withdrawal of the appeal underlines the utility of the Vivad Se Vishwas Scheme as a strategic option for resolving disputes efficiently. This case serves as a precedent for other corporations facing similar tax-related challenges, highlighting how the scheme can be leveraged to forego prolonged litigation and achieve a faster resolution.
The case of ITA 5072/DEL/2019, DSV Coload & Clearance Pvt Ltd vs. DCIT, is a testament to the success of policy initiatives like the Vivad Se Vishwas Scheme in simplifying the tax dispute resolution process. This initiative not only reduces the burden on the judiciary but also provides relief to taxpayers by expediting the resolution process and reducing associated costs.
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