Sky High Landcon Private Limited vs. ITO Karnal: Settlement of Tax Dispute under Vivad Se Vishwas Scheme

Introduction

The case of Sky High Landcon Private Limited vs. ITO (TDS) Karnal, Haryana, before the Income Tax Appellate Tribunal (ITAT) for the assessment year 2013-14, highlights an important instance of dispute resolution under the Vivad Se Vishwas Scheme, 2020. The case involves the appeal filed by the appellant, Sky High Landcon Private Limited, and its subsequent withdrawal following the decision to settle the tax dispute under the scheme.

Background of the Case

Sky High Landcon Private Limited, a company based in Haryana, filed an appeal against the order of the learned Commissioner of Income Tax (Appeals) [CIT(A)], Karnal, dated 30th May 2019. The appeal was related to the assessment year 2013-14, concerning issues related to tax deducted at source (TDS) and other related matters.

Why the Case was Filed

The case was filed by Sky High Landcon Private Limited to contest the order passed by the CIT(A), which involved disputes over tax liabilities for the assessment year 2013-14. The appellant sought relief from the ITAT regarding the tax demands raised by the ITO (TDS), Karnal.

The Vivad Se Vishwas Scheme

The Vivad Se Vishwas Scheme, 2020, was introduced by the Government of India to resolve pending direct tax disputes and provide a mechanism for taxpayers to settle their tax-related disputes efficiently. Under this scheme, taxpayers could opt to pay a certain percentage of the disputed tax and settle the case without any further litigation.

Appellant’s Decision to Settle

During the proceedings, the appellant, Sky High Landcon Private Limited, decided to withdraw the appeals filed for the assessment years 2013-14 and 2017-18, opting instead to settle the tax disputes under the Vivad Se Vishwas Scheme. A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was submitted, confirming the settlement of tax arrears.

Tribunal’s Decision

The ITAT, consisting of Shri G.S. Pannu, Vice President, and Shri Kul Bharat, Judicial Member, took note of the request for withdrawal and the settlement under the scheme. With no objections from the respondent, the appeals were dismissed as withdrawn. The tribunal’s decision reflects the growing trend of taxpayers opting for dispute resolution through the Vivad Se Vishwas Scheme, which has been instrumental in reducing litigation.

Impact of the Case

This case underscores the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for the scheme, Sky High Landcon Private Limited was able to settle its tax liabilities without further prolonging the litigation process. This outcome not only benefited the taxpayer by providing a quicker resolution but also aided the tax authorities in reducing the backlog of cases.

Conclusion

The case of Sky High Landcon Private Limited vs. ITO (TDS) Karnal exemplifies how the Vivad Se Vishwas Scheme can serve as a valuable tool for both taxpayers and tax authorities to resolve disputes amicably and efficiently. The withdrawal of the appeal following the settlement under the scheme highlights the pragmatic approach taken by the appellant to address the tax dispute in a timely and cost-effective manner.

Sky High Landcon Private Limited vs. ITO Karnal: Settlement of Tax Dispute under Vivad Se Vishwas Scheme