Shweta Agarwal vs DCIT Circle-2 Moradabad – Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2015-16

Case Overview: Shweta Agarwal vs DCIT Circle-2, Moradabad – AY 2015-16

This article provides a detailed overview of the Income Tax Appellate Tribunal’s (ITAT) decision in the case of Shweta Agarwal, Bareilly (the appellant), versus the Deputy Commissioner of Income Tax (DCIT), Circle-2, Moradabad (the respondent). The appeal, registered under case number ITA 6683/DEL/2019, was initially filed by the appellant for the assessment year (AY) 2015-16. However, the appeal was later withdrawn by the appellant under the Direct Tax Vivad Se Vishwas Scheme, 2020. The final tribunal order was pronounced on April 15, 2021.

Background of the Case

Shweta Agarwal, a resident of Bareilly, filed an appeal against the assessment order passed by the DCIT Circle-2, Moradabad, for the AY 2015-16. The appeal was directed against the order of the Commissioner of Income Tax (Appeals), Moradabad. The appellant sought to contest the tax arrears determined by the assessing officer for the said assessment year.

However, during the course of the proceedings, the appellant decided to opt for the Direct Tax Vivad Se Vishwas Scheme, 2020, a dispute resolution scheme introduced by the Indian government to settle pending tax disputes. Under this scheme, the taxpayer can resolve disputes by paying the disputed tax amount without any interest or penalty. The scheme also allows for the withdrawal of appeals pending before various appellate forums.

Key Developments Leading to Withdrawal

On March 18, 2021, the appellant, through a letter, informed the ITAT about her decision to withdraw the appeal. The letter indicated that the appellant had chosen to settle the dispute under the Vivad Se Vishwas Scheme and had filed the necessary Form 1 and Form 2 under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020. These forms are essential to apply for the scheme, with Form 1 being the declaration form and Form 2 being the undertaking to withdraw any appeals related to the dispute.

Why the Case Was Filed

The initial case was filed by Shweta Agarwal to challenge the assessment order passed by the DCIT for the AY 2015-16. The appellant sought to contest the tax liability determined by the assessing officer. However, the specific grounds of appeal, including the issues raised by the appellant, are not detailed in the tribunal’s final order since the appeal was withdrawn before substantial arguments were presented.

Proceedings Before the ITAT

The matter came up for hearing before the ITAT Delhi Bench ‘C’ on April 15, 2021. The bench comprised Shri G.S. Pannu, Vice President, and Shri Kul Bharat, Judicial Member, who presided over the virtual hearing.

During the hearing, no one appeared on behalf of the appellant. However, the appellant had already submitted a request for withdrawal of the appeal in light of the Vivad Se Vishwas Scheme. The respondent, represented by Shri R.K. Gupta, Senior Departmental Representative (DR), did not object to the withdrawal request.

After considering the appellant’s request and noting the lack of objection from the respondent, the ITAT bench accepted the withdrawal of the appeal. Consequently, the tribunal dismissed the appeal as withdrawn, with the final order pronounced on April 15, 2021.

Conclusion of the Case

The final order pronounced by the ITAT on April 15, 2021, concluded the proceedings for the AY 2015-16 between Shweta Agarwal and DCIT Circle-2, Moradabad. The Tribunal acknowledged the appellant’s decision to settle the dispute under the Vivad Se Vishwas Scheme and dismissed the appeal accordingly.

This case highlights the effectiveness of the Vivad Se Vishwas Scheme as a means for taxpayers to resolve long-standing tax disputes amicably. By opting for the scheme, Shweta Agarwal not only resolved her tax arrears but also avoided prolonged litigation, ensuring a quicker resolution of her tax matters for the AY 2015-16.

Implications for Future Disputes

The Vivad Se Vishwas Scheme has provided a viable option for taxpayers to settle disputes without incurring additional costs in the form of interest and penalties. The success of this scheme, as demonstrated in the case of Shweta Agarwal, indicates that it can be a preferred route for other taxpayers facing similar disputes.

Taxpayers who have pending appeals before various appellate forums should consider the benefits of opting for this scheme to achieve a faster and more cost-effective resolution of their disputes. The scheme’s structure ensures that taxpayers can conclude their matters with finality, allowing them to focus on future compliance and business activities.

In conclusion, the ITAT’s order in the case of Shweta Agarwal vs DCIT Circle-2, Moradabad, serves as a reminder of the opportunities available under the Vivad Se Vishwas Scheme. It underscores the importance of evaluating available dispute resolution mechanisms to make informed decisions that align with the taxpayer’s financial and business objectives.

Shweta Agarwal vs DCIT Circle-2 Moradabad – Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2015-16