Speedref Transport vs ITO – Withdrawal of Appeal under Vivad Se Vishwas Scheme – ITA No. 6268/DEL/2019 (Assessment Year 2016-17)

Case Analysis: Speedref Transport vs ITO – ITA No. 6268/DEL/2019

Case Number: ITA 6268/DEL/2019

Appellant: Speedref Transport, New Delhi

Respondent: ITO Ward-39(3), New Delhi

Assessment Year: 2016-17

Order Type: Final Tribunal Order

Date of Order: 30th December 2020

Case Filed On: 24th July 2019

Bench: Shri G.S. Pannu, Vice President, and Shri K.N. Chary, Judicial Member

Introduction

The case of Speedref Transport vs ITO (ITA No. 6268/DEL/2019) pertains to the assessment year 2016-17 and involves the withdrawal of an appeal by the appellant, Speedref Transport, under the Vivad Se Vishwas Scheme 2020. The case was heard and adjudicated by the Income Tax Appellate Tribunal (ITAT) Delhi on 30th December 2020. This analysis delves into the background of the case, the reasons for the appeal, and the circumstances leading to its withdrawal under the said scheme.

Background of the Case

Speedref Transport, a transport company based in New Delhi, filed its income tax return for the assessment year 2016-17. During the assessment process, certain disputes arose regarding the tax arrears for the said assessment year. The appellant, feeling aggrieved by the order of the Commissioner of Income Tax (Appeals)-13, New Delhi, dated 30th May 2019, decided to file an appeal before the ITAT Delhi.

The appeal was registered as ITA No. 6268/DEL/2019 and was set to be heard by the tribunal. However, before the hearing could take place, a significant development occurred—the introduction of the Vivad Se Vishwas Scheme, 2020 by the Government of India.

Why the Case Was Filed

The primary reason for filing the appeal was to challenge the order passed by the CIT(A)-13, New Delhi. Speedref Transport sought relief from the tax demands and penalties that were assessed for the year 2016-17. The appeal aimed to address the discrepancies and disputes related to the tax arrears that arose during the assessment process. The appellant believed that the CIT(A) had not adequately addressed the issues presented, leading them to seek further recourse through the ITAT.

The Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme, introduced in the Union Budget 2020, was designed to resolve pending direct tax disputes efficiently and amicably. Under the scheme, taxpayers could settle their disputes by paying the disputed tax amount, with the benefit of a complete waiver of interest and penalty. The scheme was a significant move towards reducing litigation and providing taxpayers with an opportunity to conclude long-standing disputes with minimal financial burden.

Speedref Transport, considering the benefits of the scheme, opted to settle the dispute for the assessment year 2016-17 under the Vivad Se Vishwas Scheme. The decision to withdraw the appeal was communicated to the ITAT via a letter dated 24th December 2020. The letter, received by the tribunal through email, requested the withdrawal of the appeal, citing the settlement of the dispute under the scheme.

Proceedings at the ITAT

The case was scheduled for a virtual hearing on 30th December 2020 before the ITAT Delhi Bench ‘C’. The bench was presided over by Shri G.S. Pannu, Vice President, and Shri K.N. Chary, Judicial Member. However, none appeared on behalf of Speedref Transport during the virtual hearing.

Instead, the tribunal received the letter from the appellant’s counsel requesting the withdrawal of the appeal, as the appellant had opted to settle the tax dispute under the Vivad Se Vishwas Scheme. The tribunal noted the contents of the letter and the accompanying certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, which confirmed the settlement of the dispute.

Tribunal’s Findings and Conclusion

Upon reviewing the letter and the certificate, the learned Senior Departmental Representative (DR), Sh. Gaurav Dudeja, raised no objections to the withdrawal of the appeal. The tribunal, after considering the request and the absence of any objections from the revenue’s side, accepted the appellant’s request for withdrawal.

In the final order, the ITAT dismissed the appeal as withdrawn. The order was pronounced on 30th December 2020, following the conclusion of the virtual hearing. The tribunal’s decision was straightforward, acknowledging the appellant’s choice to settle the matter under the Vivad Se Vishwas Scheme, thereby avoiding prolonged litigation.

Significance of the Decision

The decision to withdraw the appeal under the Vivad Se Vishwas Scheme highlights the scheme’s effectiveness in providing a resolution to tax disputes. For Speedref Transport, opting for the scheme was a pragmatic choice, allowing them to settle the tax arrears without the risk of accruing further interest and penalties. The dismissal of the appeal as withdrawn underscores the tribunal’s role in facilitating the resolution process under the scheme.

This case serves as an example of how taxpayers can leverage government initiatives like the Vivad Se Vishwas Scheme to resolve disputes amicably and avoid the uncertainties of prolonged litigation. The scheme provided a clear, time-bound mechanism for settlement, which in this case, was successfully utilized by Speedref Transport.

Final Judgment

The final judgment in the case of Speedref Transport vs ITO (ITA No. 6268/DEL/2019) resulted in the dismissal of the appeal as withdrawn. The tribunal, acknowledging the appellant’s decision to settle the dispute under the Vivad Se Vishwas Scheme, concluded the matter with no further litigation required. The outcome reflects the growing acceptance of alternative dispute resolution mechanisms in tax matters.

Bench: Shri G.S. Pannu, Vice President, and Shri K.N. Chary, Judicial Member

Order Pronounced On: 30th December 2020

Result: The appeal was dismissed as withdrawn under the Vivad Se Vishwas Scheme, 2020.

Speedref Transport vs ITO – Withdrawal of Appeal under Vivad Se Vishwas Scheme – ITA No. 6268/DEL/2019 (Assessment Year 2016-17)