Tax Appeal Withdrawal under Vivad Se Vishwas: Mithilesh Singhal vs. ITO Ward 39(5) for AY 2015-16
In a significant development in the realm of tax litigation, Mithilesh Singhal, the appellant in ITA No. 1033/Del/2019 for the assessment year 2015-16, opted to withdraw his appeal under the Vivad Se Vishwas Scheme, 2020. This decision came after the Department issued Form-3, acknowledging his acceptance into the scheme designed to reduce litigation and streamline tax dispute resolution.
The case, presided over by Sh. Anil Chaturvedi, Accountant Member of the Delhi Bench ‘SMC-1’, through video conferencing, marks a critical resolution mechanism under the new scheme. Initially contested vigorously, the appeal saw a surprising conclusion as Singhal decided to retract his challenge against the order dated January 11, 2019, issued by the Commissioner of Income Tax (Appeals)-13, New Delhi.
The withdrawal signifies a shift towards dispute resolution and legal peace, highlighting the government’s intent to minimize litigation and promote a non-adversarial tax environment. The Income Tax Appellate Tribunal (ITAT) also set a caveat in its final order: should the dispute concerning tax arrears for the said assessment year not resolve as per the Vivad Se Vishwas Act, Singhal retains the right to reinstate his appeal. This conditional dismissal ensures that the appellant’s rights are preserved while encouraging a move towards quicker, more efficient legal processes.
This case underlines the effectiveness of the Vivad Se Vishwas Scheme in alleviating long-standing tax disputes and is a testament to the evolving landscape of tax resolution in India. It represents a win-win for both the taxpayer and the department, paving the way for future cases to seek similar resolutions.