Varun Kumar vs ITO: Vivad Se Vishwas Dispute Settlement for Assessment Year 2015-16

Varun Kumar vs ITO: Vivad Se Vishwas Dispute Settlement for Assessment Year 2015-16

The case of Varun Kumar, New Delhi, against the Income Tax Officer, Ward-40(4), New Delhi, centered on the assessment year 2015-16, reached a conclusion on July 16, 2021, through a final tribunal order pronounced by the Delhi Bench ‘A’ of the Income Tax Appellate Tribunal (ITAT). This case, bearing the case number ITA No. 6284/Del/2019, was resolved under the Direct Tax Vivad Se Vishwas Act, 2020.

The appellant, Varun Kumar, had filed an appeal against the order passed by CIT(A)-31, New Delhi, dated May 29, 2019. The dispute involved certain tax arrears that were under consideration for the assessment year 2015-16. However, rather than continuing with the appeal process, Varun Kumar opted to settle the dispute through the Vivad Se Vishwas Scheme, 2020, which was introduced by the Government of India to reduce litigation and clear pending tax disputes.

On June 29, 2021, the counsel for Varun Kumar formally requested the withdrawal of the appeal, stating that the appellant had successfully opted to resolve the tax arrears dispute under the Vivad Se Vishwas Scheme. A certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020, was submitted as evidence of this settlement.

The Senior Departmental Representative (DR) raised no objection to the withdrawal request. Consequently, the ITAT, comprising Vice President Shri G.S. Pannu and Judicial Member Shri Kul Bharat, accepted the request. The tribunal noted that the appellant had chosen the path of settlement under the Vivad Se Vishwas Scheme, and in light of this, the appeal was dismissed as withdrawn.

The Vivad Se Vishwas Scheme was a significant initiative by the Indian government to address the long-standing issue of tax-related litigation. By allowing taxpayers to settle disputes by paying a specified amount, the scheme aimed to bring about faster resolution and unclog the backlog of cases in various appellate forums. In this context, Varun Kumar’s decision to withdraw his appeal and settle under the scheme underscores the scheme’s effectiveness and its appeal to taxpayers seeking to resolve disputes amicably.

This case exemplifies the benefits of alternative dispute resolution mechanisms like the Vivad Se Vishwas Scheme, which not only provide relief to taxpayers but also contribute to the reduction of litigation burden on the judiciary. The ITAT’s acceptance of the withdrawal marks the end of the dispute, allowing both parties to move forward.

The case of Varun Kumar vs. ITO serves as a precedent for other taxpayers who might be contemplating whether to pursue prolonged litigation or opt for settlement under similar schemes. The swift resolution in this case highlights the advantages of choosing a settlement path under government schemes designed to facilitate dispute resolution.

In conclusion, the ITAT’s decision to dismiss the appeal of Varun Kumar, following the settlement under the Vivad Se Vishwas Scheme, reflects the growing trend of taxpayers leveraging government-initiated resolution frameworks to address tax disputes efficiently. This case is a testament to the efficacy of the Vivad Se Vishwas Scheme in achieving its objective of reducing tax litigation in India.

Varun Kumar vs ITO: Vivad Se Vishwas Dispute Settlement for Assessment Year 2015-16