Subhash Chandra Maheshwari vs. ITO Ward 61(3), New Delhi: Appeal Withdrawn Under Vivad Se Vishwas Scheme

Subhash Chandra Maheshwari vs. ITO Ward 61(3), New Delhi: Appeal Withdrawn Under Vivad Se Vishwas Scheme

The case of Subhash Chandra Maheshwari against the Income Tax Officer, Ward 61(3), New Delhi, pertains to the assessment year 2015-16, under ITA No. 6470/DEL/2019. The appeal was initially filed on 2nd August 2019, challenging the tax arrears raised by the Income Tax Department. However, during the proceedings, the appellant opted for the Vivad Se Vishwas Scheme, 2020, leading to the withdrawal of the appeal. The final order was pronounced on 15th April 2021 by the Delhi Bench ‘C’ of the Income Tax Appellate Tribunal (ITAT), comprising Hon’ble Vice President Shri G.S. Pannu and Judicial Member Shri Kul Bharat.

Background of the Case

Subhash Chandra Maheshwari, a taxpayer from New Delhi, filed his return of income for the assessment year 2015-16. During the assessment process, the Income Tax Department raised certain demands, which were contested by the appellant, leading to the filing of an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], New Delhi.

The CIT(A) passed an order on 17th May 2019, which was unfavorable to the appellant. Consequently, Subhash Chandra Maheshwari approached the ITAT, Delhi, challenging the CIT(A)’s order. The key issues in dispute revolved around the tax arrears for the assessment year 2015-16, which the appellant sought to settle through the appellate process.

Proceedings Before the ITAT

The appeal was scheduled for virtual hearing on 15th April 2021. However, the appellant did not appear before the Tribunal on the date of the hearing. Instead, the learned counsel for the appellant submitted a letter dated 30th March 2021, requesting the withdrawal of the appeal.

The letter stated that Subhash Chandra Maheshwari had opted to settle the dispute relating to the tax arrears for the assessment year 2015-16 under the Vivad Se Vishwas Scheme, 2020. This scheme, introduced by the Government of India, aimed to resolve pending tax disputes by offering taxpayers an opportunity to settle their disputes by paying the disputed tax amount with a waiver of interest and penalties.

Vivad Se Vishwas Scheme: A Brief Overview

The Vivad Se Vishwas Scheme, 2020, was introduced by the Indian government as a part of its efforts to reduce litigation and expedite the resolution of tax disputes. Under this scheme, taxpayers could settle their disputes by paying only the disputed tax amount, with the government waiving off interest, penalties, and prosecution.

The scheme was well-received by taxpayers, as it provided a quick and cost-effective way to resolve long-pending tax disputes. The government, on the other hand, benefited from the scheme by recovering the principal tax amount without the burden of prolonged litigation.

In this case, Subhash Chandra Maheshwari opted for the scheme to settle his tax dispute for the assessment year 2015-16. A certificate to this effect, under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was submitted to the ITAT, confirming the settlement.

Tribunal’s Decision

The Senior Departmental Representative (DR), Sh. R.K. Gupta, who represented the Revenue, raised no objections to the withdrawal of the appeal. After considering the submissions made and the certificate filed by the appellant, the ITAT accepted the request for withdrawal.

As a result, the appeal filed by Subhash Chandra Maheshwari was dismissed as withdrawn. The Tribunal’s order, which was pronounced on 15th April 2021, effectively closed the case, bringing an end to the dispute for the assessment year 2015-16.

Significance of the Case

This case highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for the scheme, Subhash Chandra Maheshwari was able to settle his dispute with the Income Tax Department quickly, avoiding the potential costs and delays associated with prolonged litigation.

The withdrawal of the appeal under the scheme also reflects the willingness of taxpayers to utilize alternative dispute resolution mechanisms provided by the government. The success of such schemes not only benefits taxpayers by providing them with a clear path to resolve their disputes but also aids the government in reducing the backlog of cases in the appellate forums.

Conclusion

The case of Subhash Chandra Maheshwari vs. ITO Ward 61(3), New Delhi is a testament to the positive impact of the Vivad Se Vishwas Scheme, 2020. By choosing to withdraw his appeal and settle the tax arrears under the scheme, the appellant was able to achieve a swift resolution to his tax dispute.

The ITAT’s order, delivered on 15th April 2021, marks the conclusion of this case, demonstrating the effectiveness of the government’s initiative in providing a viable alternative to traditional litigation.

This case serves as an example for other taxpayers who may be considering the benefits of the Vivad Se Vishwas Scheme in resolving their pending tax disputes, offering a path to finality without the uncertainties of continued litigation.

Order Pronounced in the Open Court on 15th April 2021

Signed by:
Vice President: Shri G.S. Pannu
Judicial Member: Shri Kul Bharat

Date of Pronouncement: 15th April 2021

Subhash Chandra Maheshwari vs. ITO Ward 61(3), New Delhi: Appeal Withdrawn Under Vivad Se Vishwas Scheme