This article provides an in-depth analysis of ITA No. 1427/DEL/2020, involving the Sports & Cultural Club, Noida, and the Assistant Commissioner of Income Tax (ACIT) Circle-1, Noida. The case pertains to the assessment year 2011-12 and was filed on July 20, 2020. The final tribunal order was pronounced on April 15, 2021, under the Vivad Se Vishwas Scheme, 2020.
The Sports & Cultural Club, located in Sector-15A, Noida, Uttar Pradesh, filed multiple appeals for various assessment years, including AY 2011-12 (ITA 1427/DEL/2020). The appeals were directed against the orders of the CIT(A)-I, Noida, dated February 7, 2020, February 14, 2020, and July 10, 2020. The appellant sought to settle the dispute related to tax arrears for the concerned assessment years under the Direct Tax Vivad Se Vishwas Scheme, 2020.
The appeals were heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘C’, New Delhi, through video conferencing. The bench comprised Shri G.S. Pannu, Vice President, and Shri Kul Bharat, Judicial Member. The case was heard on April 15, 2021, and the order was pronounced on the same day.
On April 9, 2021, the appellant, Sports & Cultural Club, Noida, submitted a letter requesting the withdrawal of their appeals. The letter stated that the appellant had opted to settle the dispute related to tax arrears under the Vivad Se Vishwas Scheme, 2020. A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also filed to substantiate the settlement claim.
Upon reviewing the request and the certificate filed under the Vivad Se Vishwas Scheme, the learned Senior Departmental Representative (DR) raised no objections. Consequently, the ITAT accepted the appellant’s request for withdrawal of the appeals. The final decision was pronounced at the conclusion of the virtual hearing on April 15, 2021.
The ITAT’s acceptance of the Sports & Cultural Club, Noida’s request to withdraw its appeals under the Vivad Se Vishwas Scheme demonstrates the scheme’s efficacy in resolving tax disputes amicably. This case highlights the tribunal’s role in facilitating dispute resolution and ensuring compliance with tax regulations through alternative settlement mechanisms.
The Vivad Se Vishwas Scheme, 2020, aims to reduce litigation and expedite the resolution of tax disputes by offering taxpayers an opportunity to settle their cases by paying a specified amount. This case underscores the importance of such schemes in providing a pragmatic approach to tax dispute resolution, benefiting both taxpayers and the revenue authorities.
For taxpayers, opting for the Vivad Se Vishwas Scheme can result in significant savings on interest and penalties, while also reducing the time and resources spent on prolonged litigation. For the tax authorities, the scheme aids in clearing the backlog of cases, improving the efficiency of tax administration.
In addition to ITA No. 1427/DEL/2020, the Sports & Cultural Club, Noida, also filed appeals for other assessment years, including AY 2009-10 (ITA 1424/DEL/2020), AY 2007-08 (ITA 1425/DEL/2020), AY 2008-09 (ITA 1426/DEL/2020), AY 2012-13 (ITA 1428/DEL/2020), and AY 2013-14 (ITA 1446/DEL/2020). The withdrawal of these appeals under the Vivad Se Vishwas Scheme further emphasizes the club’s commitment to resolving its tax disputes efficiently.
This case serves as a reminder for taxpayers to consider alternative dispute resolution mechanisms like the Vivad Se Vishwas Scheme for a faster and more cost-effective resolution of tax disputes.
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