Tarun Maheshwari vs ACIT Central Circle-19, New Delhi [Assessment Year 2013-14] – Appeal Dismissed under Vivad Se Vishwas Scheme

Final Tribunal Order: Tarun Maheshwari vs ACIT Central Circle-19, New Delhi

Case Number: ITA 6518/DEL/2019

Appellant: Tarun Maheshwari, New Delhi

Respondent: ACIT Central Circle-19, New Delhi

Assessment Year: 2013-14

Order Type: Final Tribunal Order

Case Filed On: 2019-08-05

Date of Order: 2020-11-26

Date Pronounced: 2020-11-26

Presiding Members: Shri G.S. Pannu (Vice President) and Smt. Madhumita Roy (Judicial Member)

Case Overview

This case involves an appeal filed by Tarun Maheshwari, a resident of New Delhi, against the assessment order issued by the Assistant Commissioner of Income Tax (ACIT) Central Circle-19, New Delhi, for the Assessment Year 2013-14. The appeal was registered under case number ITA 6518/DEL/2019 and was heard by the Income Tax Appellate Tribunal (ITAT) on November 26, 2020, through video conferencing due to the COVID-19 pandemic.

Settlement under Vivad Se Vishwas Scheme

During the proceedings, the appellant’s counsel informed the Tribunal that Tarun Maheshwari had opted to settle his tax dispute under the Vivad Se Vishwas Act, 2020. The Vivad Se Vishwas Scheme was introduced by the Indian government to resolve pending tax disputes by allowing taxpayers to pay the disputed tax amounts and receive a waiver of interest and penalties.

The appellant’s counsel submitted a letter dated November 24, 2020, to the Tribunal, requesting the withdrawal of the appeal on the grounds that the tax dispute had been resolved under the Vivad Se Vishwas Scheme. A certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, was also submitted, confirming the settlement.

Tribunal’s Decision

Considering the request for withdrawal and the settlement of the tax dispute under the Vivad Se Vishwas Scheme, the Tribunal dismissed the appeal and consigned the case to the records. The Tribunal’s order noted that the respondent, represented by the Senior Departmental Representative (DR), raised no objections to the withdrawal.

The Tribunal also included a caveat in its order. It stated that if the settlement under the Vivad Se Vishwas Act does not ultimately resolve the tax arrears for the Assessment Year 2013-14, the appellant has the liberty to approach the Tribunal for the reinstitution of the appeal. The Tribunal assured that any such application would be considered appropriately, as per the law.

Conclusion

In conclusion, the ITAT dismissed the appeal filed by Tarun Maheshwari for the Assessment Year 2013-14 after acknowledging the settlement under the Vivad Se Vishwas Scheme. The Tribunal’s decision was pronounced on November 26, 2020, in the presence of both parties through virtual hearing.

This case illustrates the effectiveness of the Vivad Se Vishwas Scheme in resolving long-pending tax disputes, allowing taxpayers to settle their cases with minimal additional financial burden. It also highlights the Tribunal’s flexibility in ensuring that taxpayers’ rights are preserved in case the settlement process does not proceed as anticipated.

The Tribunal’s order was distributed to the appellant, respondent, and relevant tax authorities for record-keeping and further necessary actions.

Tarun Maheshwari vs ACIT Central Circle-19, New Delhi [Assessment Year 2013-14] – Appeal Dismissed under Vivad Se Vishwas Scheme