Versatile Strategies Pvt Ltd vs ACIT Circle-26(1), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2015-16

Versatile Strategies Pvt Ltd vs ACIT Circle-26(1), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2015-16

Case Number: ITA 6103/DEL/2019

Appellant: Versatile Strategies Pvt Ltd, New Delhi

Respondent: ACIT Circle-26(1), New Delhi

Assessment Year: 2015-16

Order Type: Final Tribunal Order

Date of Order: 15th April 2021

Case Filed On: 18th July 2019

Pronounced On: 15th April 2021

Background of the Case

Versatile Strategies Pvt Ltd, a company based in New Delhi, filed an appeal against the Assistant Commissioner of Income Tax (ACIT), Circle-26(1), New Delhi, for the assessment year 2015-16. This appeal was filed under case number ITA 6103/DEL/2019 and was directed against the order of the learned Commissioner of Income Tax (Appeals)-9 [CIT(A)], New Delhi, dated 15th May 2019.

The appeal was initiated to contest the tax demands levied by the Income Tax Department, which the appellant believed were unwarranted and excessive. However, before the case could be fully adjudicated by the tribunal, a significant development occurred, which led to the withdrawal of the appeal.

Vivad Se Vishwas Scheme

In 2020, the Government of India introduced the Vivad Se Vishwas Scheme, a tax dispute resolution mechanism aimed at reducing pending litigation. The scheme offered taxpayers an opportunity to settle their disputes by paying a percentage of the disputed tax amount and receiving immunity from interest, penalties, and prosecution.

Versatile Strategies Pvt Ltd opted to settle its tax dispute for the assessment year 2015-16 under this scheme. As a result, the company decided to withdraw its appeal that was pending before the Income Tax Appellate Tribunal (ITAT).

Tribunal Proceedings

The case was scheduled for a Virtual Hearing before the Delhi Bench ‘C’ of the ITAT on 15th April 2021. The bench was presided over by Vice President Shri G.S. Pannu and Judicial Member Shri Kul Bharat. At the time of the hearing, no representative appeared on behalf of the appellant.

The appellant’s counsel had submitted a letter dated 31st March 2021, requesting the withdrawal of the appeal. This letter, received via email, stated that the assessee had chosen to resolve the tax dispute under the Vivad Se Vishwas Scheme, 2020. A certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, was also filed to confirm the settlement of the tax arrears for the relevant assessment year.

Final Tribunal Order

Considering the appellant’s request and noting that the learned Senior Departmental Representative (DR), Shri R.K. Gupta, had no objections, the tribunal accepted the withdrawal of the appeal. The appeal was accordingly dismissed as withdrawn.

The final order was pronounced immediately following the conclusion of the Virtual Hearing on 15th April 2021, officially closing the case with the tax dispute for the assessment year 2015-16 being resolved under the Vivad Se Vishwas Scheme.

Conclusion

The case of Versatile Strategies Pvt Ltd vs ACIT Circle-26(1), New Delhi, highlights the effectiveness of the Vivad Se Vishwas Scheme in resolving long-standing tax disputes. By opting for this scheme, Versatile Strategies Pvt Ltd successfully settled its tax liability for the assessment year 2015-16, avoiding prolonged litigation.

This case exemplifies the utility of government-introduced alternative dispute resolution mechanisms, like the Vivad Se Vishwas Scheme, in fostering a cooperative tax environment and reducing the burden of litigation.

Note: The above summary provides an overview of the tribunal proceedings and the final order in the case of Versatile Strategies Pvt Ltd. For a more detailed understanding, interested parties are encouraged to refer to the full text of the tribunal’s order dated 15th April 2021.

Sd/-
(KUL BHARAT)
JUDICIAL MEMBER

Sd/-
(G.S. PANNU)
VICE PRESIDENT

Assistant Registrar

Versatile Strategies Pvt Ltd vs ACIT Circle-26(1), New Delhi: Appeal Filed Under Vivad Se Vishwas Scheme Withdrawn for Assessment Year 2015-16