This document provides an in-depth examination of the case ITA 235/DEL/2019, where Nirwan Imaging Pvt. Ltd., New Delhi, sought to resolve its tax dispute for the assessment year 2009-10 against the Income Tax Officer, Ward-18(3), New Delhi, under the Vivad Se Vishwas Scheme.
The case originated from an appeal filed by Nirwan Imaging Pvt. Ltd. against the order dated 14.11.2018 passed by the CIT(A)-28, New Delhi. The appeal was related to the assessment year 2009-10, and the appellant contested certain additions and penalties imposed by the assessing officer. However, during the course of the proceedings, the appellant decided to withdraw the appeal and settle the dispute under the Vivad Se Vishwas Scheme, 2020.
The primary legal issue in this case revolved around the eligibility and procedural aspects of opting for the Vivad Se Vishwas Scheme to resolve tax arrears. The scheme, introduced by the Government of India, aims to reduce litigation and expedite the resolution of tax disputes by allowing taxpayers to settle their arrears by paying a specified percentage of the disputed tax.
On 28.10.2021, the counsel for the appellant submitted a letter requesting the withdrawal of the appeal, citing the decision to opt for the Vivad Se Vishwas Scheme. The request included a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming the appellant’s participation in the scheme. The Senior Departmental Representative (DR) raised no objections to this request.
The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘SMC-1’, presided over by Shri R.K. Panda, Accountant Member, accepted the withdrawal request. In the order dated 17.11.2021, the Tribunal acknowledged the appellant’s decision to settle the tax dispute under the Vivad Se Vishwas Scheme and formally dismissed the appeal as withdrawn.
The acceptance of the withdrawal request under the Vivad Se Vishwas Scheme highlights the efficacy of the scheme in providing a viable alternative to prolonged litigation. It underscores the government’s commitment to facilitating easier resolution of tax disputes and reducing the backlog of cases in appellate forums.
The case of ITA 235/DEL/2019 sets a precedent for other taxpayers considering the Vivad Se Vishwas Scheme as a means to resolve tax disputes efficiently. The scheme’s structured approach, combined with its legal backing, ensures that taxpayers can settle their arrears with minimal procedural hurdles, thereby promoting a more amicable resolution of tax-related issues.
The positive outcome in the case of Nirwan Imaging Pvt. Ltd. serves as a testament to the potential benefits of the Vivad Se Vishwas Scheme. It encourages other taxpayers with pending disputes to consider this route for expediting the settlement process and focusing on their business operations without the overhang of unresolved tax litigation.
Tax Arrears Settlement: Nirwan Imaging Pvt. Ltd. vs. ITO in ITA 235/DEL/2019
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