Tarun Maheshwari vs. ACIT Central Circle-19, New Delhi – Assessment Year 2011-12 – Vivad Se Vishwas Scheme Withdrawal

Case Overview: Tarun Maheshwari vs. ACIT Central Circle-19, New Delhi – ITA No. 6516/DEL/2019

Case Number: ITA 6516/DEL/2019

Appellant: Tarun Maheshwari, New Delhi

Respondent: ACIT Central Circle-19, New Delhi

Assessment Year: 2011-12

Date of Filing: 2019-08-05

Order Type: Final Tribunal Order

Date of Order: 2020-11-26

Date Pronounced: 2020-11-26

Introduction

The case of Tarun Maheshwari for the assessment year 2011-12 is related to the withdrawal of an appeal filed with the Income Tax Appellate Tribunal (ITAT) Delhi. The appellant chose to withdraw the appeal under the Vivad Se Vishwas Scheme, 2020, which was introduced by the Indian government to settle pending tax disputes. The case was heard and concluded on November 26, 2020, by the ITAT Delhi Bench A, comprising Vice President Shri G.S. Pannu and Judicial Member Smt. Madhumita Roy.

Background of the Case

Tarun Maheshwari, the appellant, had filed an appeal against the order of the CIT(A), New Delhi, dated June 25, 2019, for the assessment year 2011-12. The appeal was filed on August 5, 2019, and involved disputes related to tax arrears. In 2020, the appellant opted to resolve the dispute under the Vivad Se Vishwas Scheme, 2020, which was a scheme introduced by the Government of India to resolve pending tax disputes by offering taxpayers an opportunity to settle their disputes by paying the disputed tax amount. In return, the government would waive interest, penalties, and prosecution related to the disputed tax amount.

Appellant’s Request for Withdrawal

On November 24, 2020, the appellant’s counsel, Shri Ravi Pratap Mall, submitted a letter to the Tribunal, requesting the withdrawal of the appeal. The reason for the withdrawal was that the appellant had chosen to settle the dispute under the Vivad Se Vishwas Scheme, 2020. The appellant’s counsel informed the Tribunal that the necessary formalities under the scheme had been completed, and a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was provided as proof.

Respondent’s Position

The respondent, represented by Senior DR Shri M. Baranwal, did not object to the appellant’s request for withdrawal. The respondent acknowledged the appellant’s decision to resolve the dispute under the Vivad Se Vishwas Scheme and agreed to the withdrawal of the appeal, subject to a caveat.

Tribunal’s Decision

The ITAT Delhi Bench A, after considering the request for withdrawal and the respondent’s non-objection, accepted the appellant’s request. The Tribunal noted that the appellant had opted to settle the dispute through the Vivad Se Vishwas Scheme, which provided a beneficial settlement option for taxpayers. Consequently, the appeal was dismissed as withdrawn.

However, the Tribunal added a caveat to its order. It stated that if the dispute relating to tax arrears for the assessment year under consideration was not ultimately resolved under the Vivad Se Vishwas Scheme, the appellant would have the liberty to approach the Tribunal for the reinstitution of the appeal. The Tribunal assured that such an application would be considered appropriately as per the law. The respondent had no objection to this caveat.

The Tribunal’s decision was announced on November 26, 2020, during the virtual hearing in the presence of both parties. The case was officially closed following the appellant’s withdrawal under the Vivad Se Vishwas Scheme, with the possibility of reopening if required.

Conclusion

The case of Tarun Maheshwari vs. ACIT Central Circle-19, New Delhi, highlights the effective use of the Vivad Se Vishwas Scheme, 2020, in resolving long-pending tax disputes. The appellant’s decision to withdraw the appeal under the scheme demonstrates the scheme’s appeal to taxpayers seeking a quick and amicable resolution to their tax disputes.

With the dismissal of the appeal, the appellant’s tax dispute for the assessment year 2011-12 was effectively settled, bringing an end to the litigation. The Tribunal’s inclusion of a caveat in the order ensures that the appellant has a fallback option in case the dispute is not resolved under the scheme, providing flexibility and safeguarding the appellant’s rights.

Keywords: ITAT, Income Tax Appellate Tribunal, Tarun Maheshwari, Vivad Se Vishwas Scheme, Assessment Year 2011-12, Tribunal Order, Tax Dispute Resolution

Tarun Maheshwari vs. ACIT Central Circle-19, New Delhi – Assessment Year 2011-12 – Vivad Se Vishwas Scheme Withdrawal