Thomson Press (India) Ltd. vs. JCIT: Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2016-17

Thomson Press (India) Ltd. vs. JCIT: Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2016-17

Case Number: ITA 6296/DEL/2019

Appellant: Thomson Press (India) Ltd., New Delhi

Respondent: Joint Commissioner of Income Tax, Special Range-9, New Delhi

Assessment Year: 2016-17

Order Type: Final Tribunal Order

Date of Order: March 16, 2023

Pronounced On: March 16, 2023

Case Filed On: July 26, 2019

Tribunal Bench: Delhi Bench H: New Delhi

Judges: Shri N.K. Billaiya (Accountant Member) and Shri Anubhav Sharma (Judicial Member)

Background of the Case

The appellant, Thomson Press (India) Ltd., filed an appeal against the Joint Commissioner of Income Tax, Special Range-9, New Delhi, for the assessment year 2016-17. The appeal was directed against the order passed by the Commissioner of Income Tax (Appeals)-9, New Delhi, on June 20, 2019. The primary issue in the appeal involved disallowances related to expenses claimed by the company, including those under Section 43B and Section 14A of the Income Tax Act.

Reason for Filing the Appeal

The appeal was initiated by Thomson Press (India) Ltd. to contest the disallowances made by the Income Tax Department. The disallowances pertained to various expenses claimed by the company, which were either reduced or rejected, affecting the company’s declared losses and tax liabilities for the assessment year.

Settlement under the Vivad Se Vishwas Scheme, 2020

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme, 2020. This scheme aimed at reducing litigation and providing taxpayers with an opportunity to settle their disputes with the Income Tax Department. The scheme allowed taxpayers to resolve disputes by agreeing to pay a calculated amount, thereby receiving immunity from further litigation.

Thomson Press (India) Ltd. opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020. The company submitted the required forms indicating full and final settlement of the tax arrears for the disputed assessment year.

Dismissal of the Appeal

On March 16, 2023, during the hearing, the Authorized Representative for the company submitted that the disputes for the assessment year in question had been settled under the Vivad Se Vishwas Scheme. Consequently, the appeals were withdrawn, and the Tribunal dismissed the cases as resolved. This dismissal was made with the provision that the appeals could be reinstated if the settlement under the scheme did not conclusively resolve the disputes.

Final Order

The final order was delivered by Shri N.K. Billaiya and Shri Anubhav Sharma, who constituted the bench. The bench dismissed the appeals of Thomson Press (India) Ltd. for the assessment year 2016-17 as withdrawn due to the settlements achieved under the Vivad Se Vishwas Scheme, 2020.

Conclusion

The case of Thomson Press (India) Ltd. vs. JCIT for the assessment year 2016-17 exemplifies the effectiveness of the Vivad Se Vishwas Scheme in resolving longstanding tax disputes. By opting for this scheme, the company was able to conclude disputes amicably without further litigation. The dismissal of the appeals under the scheme highlights its role in reducing the burden on both taxpayers and the judiciary, promoting a more efficient tax dispute resolution process. The success of the Vivad Se Vishwas Scheme in this case serves as a positive precedent for other companies and taxpayers facing similar disputes, underscoring the government’s commitment to simplifying the tax compliance process and reducing litigation.

Thomson Press (India) Ltd. vs. JCIT: Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2016-17