Settlement under Vivad se Vishwas Act: International Cars & Motors Ltd. vs ACIT, Circle-12(2), New Delhi for AY 2009-10

Case Summary: International Cars & Motors Ltd. vs ACIT, Circle-12(2), New Delhi for AY 2009-10

This tribunal case, ITA No. 6741/Del/2019, involves International Cars & Motors Ltd., based in New Delhi, appealing against the CIT(A)’s decision for the assessment year 2009-10. The case was presided over by Hon’ble Vice President, Shri G.S. Pannu, and Judicial Member, Shri K.N. Chary, at the Delhi Bench ‘D’ of the Income Tax Appellate Tribunal.

The central issue in this case revolved around the appellant’s disagreement with the CIT(A)’s order dated 30.05.2019. During the proceedings, the assessee’s legal representatives, including Sh. Mukesh Bhutani, Adv., Shreyansh Shah, Adv., and Karan Dhanuka, Adv., submitted that the appellant had opted to settle the dispute relating to tax arrears under the Direct Tax Vivad se Vishwas Scheme (VSVS) Act, 2020.

After considering the submissions and the declaration forms filed by the assessee, the tribunal acknowledged the move towards settlement under the VSVS Act. The tribunal noted that if the dispute relating to tax arrears for the assessment year 2009-10 was not ultimately resolved per the Act, the assessee would be at liberty to approach the tribunal for reinstatement of the appeal. Consequently, the tribunal dismissed the appeal as withdrawn.

The decision, marked by its promotion of the government’s initiative to reduce litigation in direct taxes through the Vivad se Vishwas scheme, was pronounced in the open court in the presence of both parties on March 17, 2021. This case highlights the shift towards alternative dispute resolution mechanisms in tax disputes, aiming to streamline tax litigation and encourage compliance.

Settlement under Vivad se Vishwas Act: International Cars & Motors Ltd. vs ACIT, Circle-12(2), New Delhi for AY 2009-10