Case Number: ITA 5493/DEL/2019
Appellant: Spectra ISP Networks Pvt Ltd, New Delhi
Respondent: ACIT Circle-24(1), New Delhi
Assessment Year: 2011-12
Result: Final Tribunal Order
Case Filed on: 2019-06-21
Date of Order: 2020-12-24
Pronounced on: 2020-12-24
The case involves Spectra ISP Networks Pvt Ltd, New Delhi, and the Assistant Commissioner of Income Tax (ACIT) Circle-24(1), New Delhi, for the assessment year 2011-12. The appeal was filed by Spectra ISP Networks Pvt Ltd against the order of the learned CIT(A)-8, New Delhi, dated 25.04.2019. The dispute primarily revolved around the tax arrears for the specified assessment year.
The appellant, Spectra ISP Networks Pvt Ltd, New Delhi, is a company engaged in providing internet service provider (ISP) services. For the assessment year 2011-12, the company filed an appeal against the tax assessment order issued by the ACIT Circle-24(1), New Delhi. The appellant challenged the tax assessment on several grounds, which were adjudicated by the CIT(A)-8, New Delhi.
During the course of the virtual hearing on 24th December 2020, the appellant, represented by none, submitted a letter dated 22nd December 2020, requesting the withdrawal of the appeal. The reason cited for the withdrawal was the appellant’s decision to settle the dispute relating to the tax arrears for the assessment year under consideration under the Vivad Se Vishwas Scheme, 2020. The appellant also filed a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming the settlement.
The learned Senior Departmental Representative (DR), Sh. M. Baranwal, Sr. DR, representing the ACIT Circle-24(1), New Delhi, had no objection to the appellant’s request for withdrawal of the appeal.
Given the appellant’s request for withdrawal of the appeal and the lack of objection from the respondent, the Income Tax Appellate Tribunal (ITAT) accepted the withdrawal request. Consequently, the tribunal dismissed the appeal as withdrawn.
The tribunal’s decision to accept the withdrawal of the appeal and dismiss the case underscores the efficacy of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes amicably. This case highlights the scheme’s role in providing a viable resolution for taxpayers looking to settle their tax arrears and avoid prolonged litigation.
Order:
1. The appeal filed by the assessee is dismissed as withdrawn.
2. The decision was announced on conclusion of the virtual hearing on 24th December 2020.
Members:
1. (G.S. PANNU) VICE PRESIDENT
2. (SUDHANSHU SRIVASTAVA) JUDICIAL MEMBER
The resolution of the tax arrears dispute under the Vivad Se Vishwas Scheme, 2020, reflects the scheme’s effectiveness in reducing litigation and providing a straightforward mechanism for settling tax disputes. It emphasizes the importance of such schemes in the tax administration system, facilitating quicker resolutions and benefiting both taxpayers and the revenue department.
This case demonstrates the practical application of the Vivad Se Vishwas Scheme, 2020, highlighting how taxpayers can utilize such schemes to resolve disputes efficiently. It also underscores the tribunal’s role in facilitating these resolutions by accepting withdrawal requests when disputes are settled amicably under government schemes.
The case of Spectra ISP Networks Pvt Ltd vs. ACIT Circle-24(1), New Delhi, serves as a precedent for similar cases where taxpayers opt to settle disputes under the Vivad Se Vishwas Scheme, providing a reference point for both taxpayers and tax practitioners.
Spectra ISP Networks Pvt Ltd vs. ACIT: Tax Arrears Dispute Resolution for AY 2011-12
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