This article provides a comprehensive analysis of the tribunal proceedings in ITA No. 1121/DEL/2019, involving Kajaria Ceramics Ltd., New Delhi, and the Additional Commissioner of Income Tax, Special Range-5, New Delhi. The case addresses the withdrawal of the appeal based on the Vivad Se Vishwas Scheme, 2020.
The appellant, Kajaria Ceramics Ltd., filed an appeal against the order dated 29th November 2018 of the CIT(A)-36, New Delhi, for the assessment year 2014-15. The appeal was taken up for hearing on 12th March 2021, and the decision was pronounced on the same day.
The case was heard by the ITAT Delhi Bench ‘A’ on 12th March 2021 through video conferencing. The bench consisted of Shri G.S. Pannu, Vice President, and Shri K.N. Chary, Judicial Member.
The appellant, represented by Shri V.K. Jain and Shri Vikash Jain, CAs, challenged the order of the CIT(A)-36, New Delhi, for the assessment year 2014-15. The primary issue was the resolution of tax disputes under the Vivad Se Vishwas Scheme, 2020.
During the hearing, the learned counsel for the assessee submitted a letter dated 1st March 2021 requesting the withdrawal of the appeals. The counsel stated that the assessee had opted to settle the dispute relating to the tax arrears for the assessment year under consideration under the Vivad Se Vishwas Scheme, 2020. A certificate to this effect under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also filed.
‘The learned counsel for the assessee, vide letter dated 1st March, 2021, has requested for withdrawal of the appeals and stated that the assessee has opted to settle the dispute relating to the tax arrears for the assessment year under consideration under the Vivad Se Vishwas Scheme, 2020.’
The learned Senior DR, Shri M. Barnwal, had no objection to the withdrawal of the appeals.
The tribunal concluded that in view of the submission by the learned counsel and the absence of any objection from the Revenue, the request for withdrawal of the appeals was accepted. The appeals were dismissed as withdrawn. The decision was announced on 12th March 2021 during the virtual hearing.
The tribunal’s final judgment stated:
‘In the result, the appeals of the assessee are dismissed as withdrawn. Above decision was announced on conclusion of Virtual Hearing in the presence of both the parties on 12th March, 2021.’
This judgment highlights the tribunal’s acceptance of the withdrawal request based on the Vivad Se Vishwas Scheme, 2020, and reinforces the importance of alternative dispute resolution mechanisms in tax litigation.
This case serves as a precedent for similar disputes, emphasizing the role of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes amicably. It underscores the importance of compliance with procedural guidelines and the willingness of the ITAT to facilitate dispute resolution through alternative mechanisms.
The following sections provide a detailed account of the tribunal’s deliberations and the legal arguments presented by both sides during the hearing of ITA No. 1121/DEL/2019.
The appellant, Kajaria Ceramics Ltd., New Delhi, filed the appeal against the Additional Commissioner of Income Tax, Special Range-5, New Delhi, challenging the order of the CIT(A)-36, New Delhi, for the assessment year 2014-15.
The Commissioner had issued an order on 29th November 2018, which was subsequently challenged by the appellant. The primary issue was the resolution of the tax dispute under the Vivad Se Vishwas Scheme, 2020.
‘The assessee has opted to settle the dispute relating to the tax arrears for the assessment year under consideration under the Vivad Se Vishwas Scheme, 2020.’
The tribunal emphasized the importance of adhering to the guidelines of the Vivad Se Vishwas Scheme, 2020, and accepted the withdrawal request accordingly.
The tribunal’s decision in ITA No. 1121/DEL/2019 underscores the importance of alternative dispute resolution mechanisms in tax litigation. By dismissing the appeal based on the Vivad Se Vishwas Scheme, 2020, the tribunal reinforced the principles of procedural fairness and efficiency in resolving tax disputes.
This case serves as an important reference point for future tax litigation, highlighting the benefits of the Vivad Se Vishwas Scheme, 2020, and the role of the ITAT in facilitating amicable resolutions to tax disputes.
Order pronounced in open court on this 12th day of March, 2021.
Per G.S. Pannu, Vice President, and K.N. Chary, Judicial Member.
Tax Appeal: Kajaria Ceramics Ltd. vs. ACIT Spl. Range-5, New Delhi – ITA No. 1121/DEL/2019
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