Vandana Mangat vs ITO – Appeal Withdrawal under Vivad Se Vishwas Scheme – ITA No. 6274/DEL/2019 (Assessment Year 2015-16)

Case Analysis: Vandana Mangat vs ITO – ITA No. 6274/DEL/2019

Case Number: ITA 6274/DEL/2019

Appellant: Vandana Mangat, New Delhi

Respondent: ITO Ward-13(3), New Delhi

Assessment Year: 2015-16

Order Type: Final Tribunal Order

Date of Order: 24th December 2021

Case Filed On: 25th July 2019

Bench: Shri R.K. Panda, Accountant Member, and Shri N.K. Choudhry, Judicial Member

Introduction

The case of Vandana Mangat vs ITO (ITA No. 6274/DEL/2019) pertains to an appeal filed by Vandana Mangat, a resident of New Delhi, challenging the tax assessment conducted for the financial year 2015-16. The appeal was filed against the order passed by the Income Tax Officer (ITO), Ward-13(3), New Delhi. This case was eventually resolved under the Vivad Se Vishwas Scheme 2020, leading to the withdrawal of the appeal before the Income Tax Appellate Tribunal (ITAT) Delhi.

Background of the Case

Vandana Mangat had filed her income tax return for the assessment year 2015-16. During the assessment process, the ITO raised certain demands that she found to be excessive and not in accordance with the actual income declared. Dissatisfied with the assessment order, Vandana Mangat decided to file an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. However, the order from the CIT(A) did not provide the relief she sought, leading her to escalate the matter to the ITAT.

The appeal, registered under ITA No. 6274/DEL/2019, was an attempt by the appellant to seek redressal from the tribunal and to overturn the assessment and demand raised by the ITO. However, before the tribunal could adjudicate the matter, the appellant opted to resolve the dispute under the Vivad Se Vishwas Scheme 2020.

Reason for Filing the Case

The appeal was filed by Vandana Mangat due to the following reasons:

• Discrepancies in Tax Assessment: The appellant believed that the ITO had erred in assessing her income, leading to an inflated tax demand that was not justified based on her actual earnings.
• Denial of Deductions: Certain deductions claimed by the appellant in her tax return were disallowed by the ITO, which she argued was incorrect and contrary to the provisions of the Income Tax Act, 1961.
• Penalty and Interest: The ITO had also levied penalties and interest on the additional tax demand, which the appellant contested as being unwarranted.

The appellant sought relief from the ITAT to address these issues, challenging the legitimacy of the ITO’s assessment and the subsequent order from the CIT(A).

The Vivad Se Vishwas Scheme, 2020

In a bid to reduce litigation and clear the backlog of tax disputes, the Indian government introduced the Vivad Se Vishwas Scheme 2020. This scheme provided taxpayers an opportunity to settle their disputes with the tax authorities by paying the disputed tax amount while receiving a waiver on penalties, interest, and prosecution.

Given the advantages of the scheme, Vandana Mangat chose to settle her dispute with the tax department under the Vivad Se Vishwas Scheme. By opting for this scheme, she aimed to resolve the matter quickly and avoid the prolonged process of litigation.

Proceedings at the ITAT

The appeal was scheduled for hearing on 24th December 2021 before the ITAT Delhi Bench ‘B’. The bench consisted of Shri R.K. Panda, Accountant Member, and Shri N.K. Choudhry, Judicial Member. During the virtual hearing, the authorized representative for Vandana Mangat, Sh. Ashish Sachdeva, CA, informed the tribunal that the appellant had opted to settle the dispute under the Vivad Se Vishwas Scheme 2020.

The representative submitted a written application dated 9th July 2021, requesting the withdrawal of the appeal. The application cited the appellant’s decision to settle the tax arrears under the scheme as the reason for withdrawal. Along with the application, a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also submitted, confirming that the appellant had opted for the scheme.

The Senior Departmental Representative (DR), Sh. M. Baranwal, had no objections to the withdrawal request. After considering the circumstances, the tribunal allowed the withdrawal of the appeal, effectively closing the case.

Tribunal’s Findings and Conclusion

The ITAT acknowledged the appellant’s decision to resolve the dispute under the Vivad Se Vishwas Scheme 2020. The tribunal noted that the necessary formalities, including the filing of the certificate under Section 5(1) of the Act, had been completed. Since there were no objections from the revenue’s side, the tribunal accepted the withdrawal request.

In its order, the tribunal dismissed the appeal as withdrawn. The decision was pronounced in the open court during the virtual hearing on 24th December 2021. The tribunal’s decision brought the case to a close without the need for further litigation.

Significance of the Decision

The case of Vandana Mangat vs ITO highlights the effectiveness of the Vivad Se Vishwas Scheme 2020 in providing a swift resolution to tax disputes. By opting for the scheme, the appellant was able to settle the matter without engaging in prolonged litigation, thereby saving time and resources.

The tribunal’s acceptance of the withdrawal request and the dismissal of the appeal also underscore the judiciary’s support for the government’s efforts to reduce the backlog of tax cases through alternative dispute resolution mechanisms like the Vivad Se Vishwas Scheme.

Final Judgment

The final judgment in the case of Vandana Mangat vs ITO (ITA No. 6274/DEL/2019) resulted in the dismissal of the appeal as withdrawn. The tribunal acknowledged the appellant’s decision to utilize the Vivad Se Vishwas Scheme 2020, thereby bringing the tax dispute to an amicable resolution.

Bench: Shri R.K. Panda, Accountant Member, and Shri N.K. Choudhry, Judicial Member

Order Pronounced On: 24th December 2021

Result: The appeal was dismissed as withdrawn under the Vivad Se Vishwas Scheme, 2020.

Vandana Mangat vs ITO – Appeal Withdrawal under Vivad Se Vishwas Scheme – ITA No. 6274/DEL/2019 (Assessment Year 2015-16)