TTL Mobile Pvt. Ltd. (Formerly Virgin Mobile India Pvt. Ltd.) Withdraws Appeal Under Vivad Se Vishwas Scheme for AY 2014-15

Case Overview: TTL Mobile Pvt. Ltd. (Formerly Virgin Mobile India Pvt. Ltd.) vs. ACIT, Special Range-9, New Delhi – Assessment Year 2014-15

The case of TTL Mobile Pvt. Ltd. (formerly Virgin Mobile India Pvt. Ltd.) vs. ACIT, Special Range-9, New Delhi, concerning the assessment year 2014-15, was brought before the Income Tax Appellate Tribunal (ITAT) Delhi Bench. The appeal was filed by TTL Mobile Pvt. Ltd. against the assessment order passed by the Assistant Commissioner of Income Tax (ACIT) for the said year. However, the appellant later chose to withdraw the appeal by opting for the Vivad Se Vishwas Scheme, 2020.

Background of the Case

TTL Mobile Pvt. Ltd., previously known as Virgin Mobile India Pvt. Ltd., is a well-known telecommunications company based in New Delhi. The company had filed an appeal against the assessment order for the assessment year 2014-15, which was issued by the ACIT, Special Range-9, New Delhi. The dispute involved certain tax arrears and adjustments made by the tax authorities during the assessment process. In an effort to resolve the dispute without prolonged litigation, TTL Mobile Pvt. Ltd. decided to take advantage of the Vivad Se Vishwas Scheme, 2020, introduced by the Indian government as a part of its tax dispute resolution initiatives.

The Vivad Se Vishwas Scheme, 2020

The Vivad Se Vishwas Scheme, 2020, was launched with the objective of reducing pending litigation in the tax system. It provided taxpayers an opportunity to settle their tax disputes by paying a specified percentage of the disputed tax amount while receiving waivers on interest and penalties. This scheme was designed to provide a one-time settlement window to clear tax arrears and disputes across the country, allowing taxpayers to move forward without the burden of unresolved tax issues.

In the present case, TTL Mobile Pvt. Ltd. opted to resolve its ongoing tax dispute for the assessment year 2014-15 under this scheme. The company believed that the scheme offered a favorable resolution to the tax dispute, which would allow it to focus on its core business activities without the distraction of pending litigation.

Request for Withdrawal

On February 25, 2021, the legal counsel representing TTL Mobile Pvt. Ltd. submitted a formal request via email to the ITAT, seeking the withdrawal of the appeal. The request highlighted that the company had chosen to settle the tax dispute for the assessment year 2014-15 under the Vivad Se Vishwas Scheme, 2020. Additionally, a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was provided to confirm that the settlement had been accepted by the tax authorities.

The ITAT Delhi Bench, comprising Vice President Shri G.S. Pannu and Judicial Member Shri Kul Bharat, reviewed the request during a virtual hearing held on March 3, 2021. The Senior Departmental Representative (DR), Shri M. Baranwal, who represented the Income Tax Department, did not object to the withdrawal of the appeal.

Tribunal’s Decision

After considering the appellant’s request and the absence of any objections from the Revenue’s side, the ITAT Delhi Bench decided to accept the withdrawal of the appeal. The tribunal noted that since the appellant had chosen to settle the matter under the Vivad Se Vishwas Scheme, there was no further need to pursue the appeal in the tribunal.

As a result, the appeal filed by TTL Mobile Pvt. Ltd. for the assessment year 2014-15 was officially dismissed. The decision was announced at the conclusion of the virtual hearing on March 3, 2021.

Conclusion

The withdrawal of the appeal by TTL Mobile Pvt. Ltd. under the Vivad Se Vishwas Scheme, 2020, underscores the effectiveness of this scheme in providing a swift resolution to tax disputes. By opting for this scheme, the company was able to resolve its tax issues for the assessment year 2014-15, thus avoiding the time-consuming and costly process of prolonged litigation.

This case highlights the significance of alternative dispute resolution mechanisms like the Vivad Se Vishwas Scheme in the Indian tax landscape. Such schemes not only help taxpayers settle their disputes amicably but also reduce the backlog of cases in the judiciary, contributing to a more efficient and streamlined tax administration system.

TTL Mobile Pvt. Ltd. (Formerly Virgin Mobile India Pvt. Ltd.) Withdraws Appeal Under Vivad Se Vishwas Scheme for AY 2014-15