Tax Dispute Resolution: Santosh Kumar Gupta vs. ITO Ward-4, Rohtak (ITA 6163/DEL/2019)

Introduction

The case ITA No. 6163/DEL/2019 involves a tax dispute between Santosh Kumar Gupta of Rohtak and the Income Tax Officer (ITO) Ward-4, Rohtak. This case concerns the assessment year 2015-16 and was resolved under the Vivad Se Vishwas Scheme, reflecting the government’s effort to reduce tax litigation and promote dispute resolution through amicable means.

Background of the Case

Santosh Kumar Gupta, a resident of Rohtak, faced issues regarding the assessment of his income for the year 2015-16. The initial assessment was challenged due to discrepancies that were identified by the ITO Ward-4, Rohtak. Dissatisfied with the assessment outcome, Gupta appealed the decision to the Commissioner of Income Tax (Appeals), Rohtak. The appeal was further escalated to the Income Tax Appellate Tribunal (ITAT) after the CIT(A) upheld the original assessment.

Proceedings at the ITAT

The appeal was presented before the ITAT, where it was heard by a bench comprising Shri Saktijit Dey, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member. During the proceedings, which took place on 30 May 2022, Gupta, through a written application, informed the Tribunal that he had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. The written submission requested the withdrawal of the appeal, as Gupta was seeking to avail the benefits of the scheme, which was designed to reduce litigation by allowing taxpayers to settle disputes with the tax department.

Tribunal’s Decision

The Tribunal accepted Gupta’s request to withdraw the appeal, dismissing it accordingly. However, the dismissal was subject to a caveat that if Gupta was unable to finalize the settlement under the Vivad Se Vishwas Scheme, he could seek reinstatement of the appeal before the ITAT. This provision ensures that taxpayers who opt for the scheme are not left without recourse should the settlement process encounter issues.

Conclusion

The resolution of ITA No. 6163/DEL/2019 under the Vivad Se Vishwas Scheme highlights the effectiveness of this alternative dispute resolution mechanism in settling tax disputes efficiently. The case serves as an example of how taxpayers can leverage government initiatives to resolve tax issues without engaging in prolonged litigation. This outcome not only provided relief to Santosh Kumar Gupta but also reinforced the value of such schemes in India’s tax dispute resolution framework.

Tax Dispute Resolution: Santosh Kumar Gupta vs. ITO Ward-4, Rohtak (ITA 6163/DEL/2019)