Vipul Mittal (HUF) vs. ITO: Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2015-16

Vipul Mittal (HUF) vs. ITO: Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2015-16

Case Number: ITA 6286/DEL/2019

Appellant: Vipul Mittal (HUF), New Delhi

Respondent: Income Tax Officer, Ward-40(4), New Delhi

Assessment Year: 2015-16

Order Type: Final Tribunal Order

Date of Order: January 25, 2021

Pronounced On: January 25, 2021

Case Filed On: July 26, 2019

Tribunal Bench: Delhi Bench B: New Delhi (Through Video Conferencing)

Judges: Shri G.S. Pannu (Vice President) and Shri Sudhanshu Srivastava (Judicial Member)

Background of the Case

The appellant, Vipul Mittal (HUF), filed an appeal against the Income Tax Officer, Ward-40(4), New Delhi, for the assessment year 2015-16. The appeal was directed against the order passed by the learned CIT(A)-14, New Delhi. The case primarily involved disputes related to tax arrears assessed by the Income Tax Department for the relevant assessment year.

Reason for Filing the Appeal

The appeal was initially filed by Vipul Mittal (HUF) to contest the tax demands raised by the Income Tax Department for the assessment year 2015-16. The appellant sought relief from the tax liabilities imposed as per the assessment order, which were believed to be unjustified and excessive.

Settlement under the Vivad Se Vishwas Scheme, 2020

During the pendency of the appeal, the Government of India introduced the Vivad Se Vishwas Scheme, 2020. This scheme was designed to resolve pending tax disputes and reduce litigation by allowing taxpayers to settle their disputes with the Income Tax Department. The scheme offered a favorable resolution by paying a percentage of the disputed tax amount, thus providing immunity from further litigation.

Vipul Mittal (HUF) opted to settle 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 submitted by the appellant, confirming the settlement of the tax arrears related to the assessment year 2015-16 under this scheme.

Withdrawal of the Appeal

On January 25, 2021, during the virtual hearing of the case, the appellant did not appear, but a letter was submitted on behalf of Vipul Mittal (HUF) requesting the withdrawal of the appeal. The withdrawal request was made in light of the successful settlement under the Vivad Se Vishwas Scheme, 2020. The respondent’s representative, Sh. M. Baranwal, Sr. DR, had no objection to the withdrawal of the appeal.

Given the request for withdrawal, the Income Tax Appellate Tribunal (ITAT) accepted the withdrawal and dismissed the appeal as withdrawn. The decision was pronounced at the conclusion of the virtual hearing on January 25, 2021.

Final Order

The final order was delivered by Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member, who constituted the bench. The bench concluded that the appeal filed by Vipul Mittal (HUF) for the assessment year 2015-16 was dismissed as withdrawn due to the settlement of the dispute under the Vivad Se Vishwas Scheme, 2020.

This decision marks the end of the litigation process for the appellant, providing relief from the contested tax liabilities for the assessment year in question.

Conclusion

The case of Vipul Mittal (HUF) vs. ITO for the assessment year 2015-16 exemplifies how the Vivad Se Vishwas Scheme, 2020, effectively facilitates the resolution of tax disputes. By opting for this scheme, the appellant was able to resolve the dispute amicably and avoid prolonged litigation. The withdrawal of the appeal under the scheme demonstrates its effectiveness in reducing the burden on both taxpayers and the judiciary.

The ITAT’s acceptance of the withdrawal and dismissal of the appeal underscores the importance of such schemes in promoting a more efficient tax dispute resolution process. The success of the Vivad Se Vishwas Scheme, 2020, in this case, serves as a positive example for other taxpayers who may be considering similar resolutions to their disputes.

The withdrawal of the appeal by Vipul Mittal (HUF) highlights the benefits of settling disputes under government-initiated schemes like the Vivad Se Vishwas Scheme, which not only provides financial relief but also expedites the resolution process, allowing taxpayers to move forward without the cloud of litigation hanging over their heads.

Overall, the scheme’s implementation and its positive outcomes, as seen in this case, reinforce the government’s commitment to easing the tax compliance process and providing avenues for dispute resolution that are both efficient and equitable.

The withdrawal of the appeal in the case of Vipul Mittal (HUF) underlines the success of the Vivad Se Vishwas Scheme in achieving its intended goals and provides a clear pathway for resolving tax disputes outside the courtroom, benefiting both the taxpayers and the tax administration system.

As more taxpayers opt for such schemes, the overall efficiency of the tax dispute resolution process is likely to improve, leading to a reduction in the backlog of cases and fostering a more cooperative relationship between taxpayers and the tax authorities.

Vipul Mittal (HUF) vs. ITO: Appeal Withdrawal under Vivad Se Vishwas Scheme for AY 2015-16