Usha Arora vs DCIT Central Circle, Ghaziabad: Withdrawal of Appeal Under Vivad Se Vishwas Scheme for AY 2017-18

Case Overview: Usha Arora vs DCIT Central Circle, Ghaziabad

Case Number: ITA 6219/DEL/2019

Appellant: Usha Arora, New Delhi

Respondent: DCIT Central Circle, Ghaziabad

Assessment Year: 2017-18

Case Filed On: 2019-07-22

Order Type: Final Tribunal Order

Date of Order: 2022-06-30

Pronounced On: 2022-06-30

Introduction

The case of Usha Arora vs DCIT Central Circle, Ghaziabad pertains to an appeal filed by the appellant, Usha Arora, against the assessment order for the assessment year 2017-18. The appeal was ultimately withdrawn by the appellant under the Direct Tax Vivad Se Vishwas Scheme, 2020, leading to its dismissal by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘H’, on June 30, 2022.

Background of the Case

Usha Arora, a resident of New Delhi, challenged the assessment order passed by the Deputy Commissioner of Income Tax (DCIT), Central Circle, Ghaziabad, for the assessment year 2017-18. The case was filed before the ITAT on July 22, 2019, and was assigned to the Delhi Bench ‘H’ for hearing. The appeal was directed against the order of the Commissioner of Income Tax (Appeals)-IV, Kanpur, dated April 30, 2019, which had upheld the assessment order challenged by the appellant.

The grounds for appeal were rooted in the appellant’s contention that the assessment made by the DCIT was not justified. However, as the Vivad Se Vishwas Scheme, 2020, became an available option, the appellant opted to resolve the dispute under this scheme.

The Vivad Se Vishwas Scheme, 2020

The Direct Tax Vivad Se Vishwas Scheme, 2020, was introduced by the Indian government as a means to settle disputed tax matters efficiently. Under this scheme, taxpayers could resolve their disputes by paying the agreed amount of tax without any further litigation. This scheme was particularly appealing for cases where the taxpayers wanted to avoid prolonged legal proceedings and bring finality to their tax disputes.

In the case of Usha Arora, the decision to withdraw the appeal under this scheme indicated a willingness to settle the tax dispute amicably, thereby avoiding the uncertainty and costs associated with continued litigation.

Proceedings Before the ITAT

The appeal was scheduled for hearing on June 20, 2022, before the ITAT, Delhi Bench ‘H’. The Bench was presided over by the Hon’ble President, Shri G.S. Pannu, and Judicial Member Shri Anubhav Sharma. The appellant was represented by Advocates Sh. Somil Aggarwal and Sh. Deepesh Garg, while the Revenue was represented by Senior Departmental Representative Sh. Parikshit Singh.

During the hearing, the appellant submitted an application for the withdrawal of the appeal, citing the resolution of the dispute under the Vivad Se Vishwas Scheme, 2020. The application was supported by Form 5 under the Act of 2020, confirming that the settlement process had been initiated and a certificate had been issued by the designated authority.

Tribunal’s Decision

The ITAT, upon reviewing the contents of the withdrawal application and the submission of Form 5, decided to dismiss the appeal as withdrawn. The Bench noted that, under subsection (2) of section 4 of the Act of 2020, once a certificate is issued under subsection (1) of section 5 by the designated authority, the appeal pending before the tribunal is deemed to have been withdrawn from the date on which the certificate is issued.

However, the tribunal also provided a caveat, stating that if the dispute relating to tax arrears for the assessment year 2017-18 was not ultimately resolved under the Vivad Se Vishwas Scheme, the appellant would have the liberty to approach the tribunal for the reinstitution of the appeal. The tribunal assured that such an application would be considered appropriately as per law.

The decision to dismiss the appeal as withdrawn was pronounced in the open court on June 30, 2022, marking the conclusion of the case.

Conclusion

The case of Usha Arora vs DCIT Central Circle, Ghaziabad illustrates the effectiveness of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes outside the traditional litigation process. By opting to withdraw the appeal and settle under the scheme, Usha Arora chose a path that provided certainty and finality to the tax matter in question.

Withdrawal of appeals under such schemes reflects a strategic decision by taxpayers to avoid the complexities and delays associated with prolonged litigation. In this instance, the ITAT’s swift processing of the withdrawal request and the clear guidelines provided in their order underscored the tribunal’s commitment to facilitating such resolutions efficiently.

This case serves as an example for other taxpayers who might be considering the Vivad Se Vishwas Scheme or similar dispute resolution mechanisms in the future. The tribunal’s decision to keep the door open for reinstitution of the appeal, should the settlement process not be finalized, also provides a safeguard for the taxpayer’s rights, ensuring that they are not left without recourse if the scheme’s settlement falls through.

Final Tribunal Order

The final order, pronounced on June 30, 2022, by Hon’ble President Shri G.S. Pannu and Judicial Member Shri Anubhav Sharma, officially dismissed the appeal as withdrawn, with the provision for potential reinstitution should the need arise.

Order Pronounced in the Open Court on 30th June, 2022.

Judicial Member: Anubhav Sharma

President: G.S. Pannu

Usha Arora vs DCIT Central Circle, Ghaziabad: Withdrawal of Appeal Under Vivad Se Vishwas Scheme for AY 2017-18