Shiv Shakti Marketing Pvt. Ltd. vs ITO: Withdrawal Under Vivad Se Vishwas Scheme – ITA 6588/DEL/2019

Shiv Shakti Marketing Pvt. Ltd. vs ITO: Withdrawal Under Vivad Se Vishwas Scheme – ITA 6588/DEL/2019

The case of Shiv Shakti Marketing Pvt. Ltd. vs Income Tax Officer (ITO), Ward-23(2), New Delhi pertains to the assessment year 2011-12. Shiv Shakti Marketing Pvt. Ltd., a company based in New Delhi, had filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order passed by the Commissioner of Income Tax (Appeals)-8, New Delhi, dated 10th June 2019. The final order in this case was pronounced on 16th November 2020 by the Delhi Bench ‘A’ of the ITAT, presided over by Shri G.S. Pannu, Vice President, and Shri Amit Shukla, Judicial Member.

Background of the Case

The appeal was filed by Shiv Shakti Marketing Pvt. Ltd. challenging the order passed by the CIT(A) for the assessment year 2011-12. The company sought relief from certain tax arrears, which were under dispute. However, during the course of the appeal proceedings, the appellant opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. This scheme, introduced by the Government of India, was designed to resolve pending tax disputes by allowing taxpayers to pay a specified amount in exchange for the waiver of interest, penalties, and prosecution.

Shiv Shakti Marketing Pvt. Ltd., after applying for and obtaining Form No. 3 under the Vivad Se Vishwas Scheme and paying the required taxes, sought to withdraw the appeal. The application for withdrawal was submitted by the appellant’s counsel during the hearing.

Request for Withdrawal

In the hearing held on 16th November 2020, the counsel for Shiv Shakti Marketing Pvt. Ltd. filed an application requesting the withdrawal of the appeal. The request was based on the fact that the appellant had opted for the Vivad Se Vishwas Scheme and had successfully settled the tax arrears for the assessment year 2011-12.

The request for withdrawal was presented before the ITAT, and the revenue, represented by the Senior Departmental Representative (DR), did not raise any objections to the withdrawal application. Considering the circumstances and the absence of any objections from the revenue side, the ITAT allowed the withdrawal of the appeal.

ITAT’s Decision

The ITAT, in its order dated 16th November 2020, noted that the appellant had opted for the Vivad Se Vishwas Scheme and had paid the required taxes as per the scheme’s provisions. Given this, the Tribunal found it appropriate to allow the withdrawal of the appeal. Consequently, the appeal filed by Shiv Shakti Marketing Pvt. Ltd. was dismissed as withdrawn.

The Tribunal’s decision was announced in the open court on the same day, concluding the proceedings for the case. The ITAT’s order highlighted the successful resolution of the tax dispute through the Vivad Se Vishwas Scheme, which has been an effective mechanism for settling long-pending tax disputes in India.

Conclusion

The case of Shiv Shakti Marketing Pvt. Ltd. vs ITO exemplifies the efficiency of the Vivad Se Vishwas Scheme in resolving tax disputes amicably. By opting for this scheme, companies like Shiv Shakti Marketing Pvt. Ltd. were able to settle their tax liabilities without prolonged litigation, thereby reducing the burden on both the taxpayer and the judiciary. The ITAT’s order reflects the Tribunal’s support for such alternative dispute resolution mechanisms, which help in achieving a faster resolution of tax-related matters.

Shiv Shakti Marketing Pvt. Ltd. vs ITO: Withdrawal Under Vivad Se Vishwas Scheme – ITA 6588/DEL/2019