Sharat Kumar vs ITO – Settlement Under Vivad Se Vishwas Scheme for AY 2014-15

Sharat Kumar vs ITO – Settlement Under Vivad Se Vishwas Scheme for AY 2014-15

Case Number: ITA 6532/DEL/2019

Appellant: Sharat Kumar, Delhi

Respondent: ITO Ward-65(5), New Delhi

Assessment Year: 2014-15

Order Type: Final Tribunal Order

Date of Order: 2021-03-30

Pronounced on: 2021-03-30

Background of the Case

Sharat Kumar, a resident of Delhi, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)-28, New Delhi, for the assessment year 2014-15. The case was brought before the Income Tax Appellate Tribunal (ITAT), Delhi Bench, challenging the assessment made for the relevant year.

The appeal was focused on disputing the tax arrears determined by the Assessing Officer and confirmed by the CIT(A). However, during the proceedings, the appellant expressed his interest in resolving the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2020. This scheme was introduced by the Government of India to reduce litigation and provide a quick resolution to tax disputes.

Appellant’s Request for Withdrawal

On February 27, 2021, Sharat Kumar submitted a formal request to the Tribunal, seeking permission to withdraw the appeal. In his letter, the appellant stated that he had opted to settle the tax dispute under the Vivad Se Vishwas Scheme.

The appellant also provided a certificate issued under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, as evidence of his decision to settle the tax arrears for the assessment year 2014-15. This certificate confirmed that the appellant had fulfilled the requirements of the scheme and was eligible for the settlement.

Response from the Revenue Department

The Senior Departmental Representative (DR) representing the Income Tax Department raised no objections to the appellant’s request for withdrawal. The DR acknowledged the appellant’s decision to resolve the dispute under the Vivad Se Vishwas Scheme and did not contest the withdrawal of the appeal.

Tribunal’s Decision

After considering the appellant’s request and the lack of objections from the Revenue Department, the Tribunal decided to accept the withdrawal of the appeal. The bench, comprising Shri G.S. Pannu, Vice President, and Shri Kul Bharat, Judicial Member, concluded that the appeal should be dismissed as withdrawn, given the circumstances presented.

The Tribunal announced its decision during a Virtual Hearing on March 30, 2021. The dismissal of the appeal was formally recorded in the presence of both parties, ensuring that the resolution was transparent and in accordance with legal procedures.

Conclusion

The case of Sharat Kumar vs ITO for the assessment year 2014-15 highlights the effectiveness of the Vivad Se Vishwas Scheme in facilitating the resolution of tax disputes. By opting for the scheme, the appellant was able to settle the dispute efficiently, avoiding prolonged litigation.

This case also underscores the importance of alternative dispute resolution mechanisms in the Indian tax system. The Vivad Se Vishwas Scheme provided a viable option for taxpayers like Sharat Kumar to address their tax-related issues amicably, leading to a quicker resolution and reducing the burden on the judicial system.

Ultimately, the dismissal of the appeal reflects the appellant’s commitment to resolving the matter through the settlement scheme, bringing closure to the dispute for the assessment year 2014-15.

Sharat Kumar vs ITO – Settlement Under Vivad Se Vishwas Scheme for AY 2014-15