Supriya Arya vs. ACIT Delhi: Tax Dispute Settlement under Vivad Se Vishwas Scheme for AY 2014-15

Introduction

The case of Supriya Arya vs. Assistant Commissioner of Income Tax (ACIT), Central Circle-25, New Delhi, revolves around the resolution of a tax dispute for the assessment year 2014-15. This case, filed before the Income Tax Appellate Tribunal (ITAT), highlights the application of the Vivad Se Vishwas Scheme, 2020, which was introduced by the Indian government to resolve tax-related disputes effectively.

Background of the Case

Supriya Arya, a resident of New Delhi, faced a tax dispute with the ACIT, Central Circle-25, New Delhi, regarding her tax liabilities for the assessment year 2014-15. The dispute arose from the assessments and demands made by the tax authorities, which Supriya Arya contested by filing an appeal before the ITAT. The case was originally filed on July 30, 2019, following the issuance of the order by the Commissioner of Income Tax (Appeals) [CIT(A)] on June 10, 2019.

Reasons for Filing the Appeal

Supriya Arya filed the appeal challenging the order passed by the CIT(A), which upheld the tax assessments and demands made by the ACIT. The grounds for the appeal included various legal and factual disputes related to the assessment of her income for the financial year 2014-15. The appellant sought relief from the ITAT, questioning the legitimacy and accuracy of the tax demands raised by the ACIT.

The Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme was introduced by the Indian government as a mechanism to reduce litigation in direct tax matters. It provided taxpayers an opportunity to settle their pending disputes by paying a percentage of the disputed tax amount. The scheme aimed to resolve long-standing disputes and reduce the burden on the judiciary by offering a simplified settlement process.

Appellant’s Decision to Opt for the Scheme

During the proceedings, Supriya Arya decided to opt for the Vivad Se Vishwas Scheme to settle her tax dispute. The decision was communicated to the ITAT through a letter dated October 31, 2020, where her counsel, Shri Kapil Goel, requested the withdrawal of the appeals. The letter also mentioned that certificates under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, were submitted, confirming the settlement of the tax arrears for the relevant assessment years.

Tribunal’s Decision

The ITAT bench, comprising Vice President Shri G.S. Pannu and Judicial Member Shri Amit Shukla, accepted the request for withdrawal of the appeals. The CIT-DR, representing the respondent, raised no objections to the withdrawal. As a result, the appeals were dismissed as withdrawn. The tribunal’s order was pronounced on November 19, 2020, during a virtual hearing.

Significance of the Case

This case is a prime example of the effectiveness of the Vivad Se Vishwas Scheme in resolving tax disputes. By opting for the scheme, Supriya Arya was able to bring closure to her tax-related issues without the need for prolonged litigation. The scheme provided a streamlined and efficient process for settling disputes, benefiting both the taxpayer and the tax authorities.

Conclusion

The case of Supriya Arya vs. ACIT, Central Circle-25, New Delhi, demonstrates how the Vivad Se Vishwas Scheme can be effectively utilized to resolve tax disputes. The decision to settle the case under this scheme highlights the importance of such government initiatives in reducing litigation and providing taxpayers with a viable alternative to contesting tax demands. This case serves as an important reference for taxpayers facing similar disputes, showcasing the benefits of opting for a settlement scheme that promotes resolution over prolonged legal battles.

Supriya Arya vs. ACIT Delhi: Tax Dispute Settlement under Vivad Se Vishwas Scheme for AY 2014-15