Tax Dispute Settlement: Manju Bansal vs. ITO Ward-40(5), New Delhi (ITA 6159/DEL/2019)

Introduction

The case ITA No. 6159/DEL/2019 involves Manju Bansal, who challenged the assessment made by ITO Ward-40(5), New Delhi, for the assessment year 2010-11. The resolution under the Vivad Se Vishwas Scheme underscores the government’s efforts to streamline tax litigation and promote voluntary compliance.

Case Background

Manju Bansal, a taxpayer based in New Delhi, faced scrutiny for the assessment year 2010-11. The initial assessment, contested through the CIT(A)-34, was challenged before the Income Tax Appellate Tribunal. The case centered around discrepancies identified by the assessing officer, leading to a tax dispute.

Legal Proceedings and Developments

During the tribunal proceedings, which were conducted via video conferencing, Bansal’s legal representative submitted a request to withdraw the appeal following the submission of Forms 1 and 2 under the Vivad Se Vishwas Scheme, 2020. This scheme, designed to reduce the backlog of tax litigation, allowed taxpayers to settle disputes by paying a determined amount without further contestation.

Tribunal’s Decision

Presided over by Shri Anil Chaturvedi, the tribunal accepted the withdrawal of the appeal, effectively dismissing the case. However, the decision included a caveat, allowing Bansal to reinstitute the appeal if the settlement under the scheme did not reach completion. This decision highlights the tribunal’s role in facilitating the resolution of disputes through alternative mechanisms provided by the government.

Conclusion

The outcome of ITA No. 6159/DEL/2019 not only resolved a specific tax dispute but also set a precedent for similar cases. The Vivad Se Vishwas Scheme continues to be a vital tool in promoting tax compliance and reducing litigation. This case serves as a reminder of the importance of timely and efficient resolution of tax disputes through government initiatives.

Tax Dispute Settlement: Manju Bansal vs. ITO Ward-40(5), New Delhi (ITA 6159/DEL/2019)