Solange Retail Private Limited Withdraws Tax Dispute Appeal for AY 2015-16 Under Vivad Se Vishwas Scheme

Solange Retail Private Limited Withdraws Tax Dispute Appeal for AY 2015-16 Under Vivad Se Vishwas Scheme

In a significant move, Solange Retail Private Limited, a New Delhi-based company, opted to withdraw its appeal in a tax dispute pertaining to the assessment year (AY) 2015-16. The appeal, which was filed against the Additional Commissioner of Income Tax (ACIT), Circle-24(1), New Delhi, under case number ITA 6612/DEL/2019, was withdrawn as the company chose to settle the dispute under the Vivad Se Vishwas Scheme, 2020.

Background of the Case

The case originally arose from an order passed by the Commissioner of Income Tax (Appeals) [CIT(A)]-XXV, New Delhi, on June 13, 2019. Solange Retail Private Limited, with its registered office at 204, Ground Floor, Okhla Industrial Estate, Phase-III, New Delhi, had filed the appeal challenging the assessment made by the Income Tax Department for AY 2015-16. The case was slated for hearing before the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘B’, on April 30, 2021.

The Vivad Se Vishwas Scheme, introduced by the Government of India, is designed to resolve pending direct tax disputes by allowing taxpayers to pay a determined amount to settle their cases. This scheme has been widely embraced by taxpayers as a means to avoid prolonged litigation and the associated costs.

Request for Withdrawal

On April 12, 2021, the counsel for Solange Retail Private Limited, Shri Satyajit Goel, CA, submitted a formal request to withdraw the appeal. The request was made following the company’s decision to resolve the tax dispute under the Vivad Se Vishwas Scheme. Along with the withdrawal request, a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was submitted to confirm the settlement of the tax arrears for AY 2015-16.

Shri R.K. Gupta, the Senior Departmental Representative (DR) for the Income Tax Department, raised no objections to the withdrawal request. Consequently, the ITAT, comprising Vice President Shri G.S. Pannu and Judicial Member Shri Kul Bharat, accepted the request during a virtual hearing held on April 30, 2021.

Tribunal’s Order

The ITAT officially dismissed the appeal following the withdrawal request submitted by Solange Retail Private Limited. The Tribunal’s order was pronounced on the same day, thereby concluding the case. This withdrawal under the Vivad Se Vishwas Scheme effectively brings an end to the tax dispute for AY 2015-16, offering a resolution for both the company and the tax authorities.

Conclusion

The decision by Solange Retail Private Limited to withdraw its appeal under the Vivad Se Vishwas Scheme underscores the effectiveness of the scheme in providing a streamlined resolution to tax disputes. By opting for this route, the company has avoided the potential expenses and uncertainties associated with ongoing litigation. The scheme has proven to be a valuable tool for taxpayers seeking to resolve their tax disputes in an efficient and cost-effective manner.

This case highlights the increasing popularity of the Vivad Se Vishwas Scheme as a mechanism for dispute resolution within the Indian tax system. The successful conclusion of this case under the scheme serves as an example for other taxpayers with pending disputes, showcasing the benefits of settling tax arrears through this government initiative.

Solange Retail Private Limited Withdraws Tax Dispute Appeal for AY 2015-16 Under Vivad Se Vishwas Scheme