Vishwakarma Enterprises (India) Private Limited vs. ITO Ward-26(4): Withdrawal of Appeal Under Vivad Se Vishwas for Assessment Year 2015-16

Vishwakarma Enterprises (India) Private Limited vs. ITO Ward-26(4): Withdrawal of Appeal Under Vivad Se Vishwas for Assessment Year 2015-16

The Income Tax Appellate Tribunal (ITAT) of Delhi Bench ‘E’, presided over by Shri G.S. Pannu, Vice President, and Ms. Suchitra Kamble, Judicial Member, reviewed an appeal filed by Vishwakarma Enterprises (India) Private Limited, Delhi. The case, numbered ITA 6448/DEL/2019, pertained to the assessment year 2015-16 and was originally filed on 1st August 2019. However, the appeal was later withdrawn by the appellant under the Direct Tax Vivad Se Vishwas Scheme, 2020. The final tribunal order was pronounced on 31st August 2021.

Background of the Case

Vishwakarma Enterprises (India) Private Limited, a company engaged in various business activities, filed its return of income for the assessment year 2015-16. During the assessment process, certain issues arose that led to the issuance of a tax demand by the Income Tax Officer (ITO) Ward-26(4), New Delhi. Dissatisfied with the order passed by the Assessing Officer, the company filed an appeal with the Commissioner of Income Tax (Appeals) [CIT(A)], which was subsequently dismissed. The company then appealed to the ITAT, seeking relief from the disputed tax demand.

The appeal was aimed at contesting the additions made by the ITO and the confirmation of these additions by the CIT(A). The specific issues in dispute were not elaborated in the Tribunal’s order. However, as the case proceeded, the appellant decided to opt for the Direct Tax Vivad Se Vishwas Scheme, 2020, a government initiative aimed at resolving pending tax disputes by allowing taxpayers to settle their disputes by paying the disputed tax amount while waiving interest and penalties.

Proceedings Before the ITAT

The case was scheduled for a virtual hearing on 31st August 2021. However, no representative from Vishwakarma Enterprises (India) Private Limited appeared for the hearing. Instead, the company’s counsel had previously submitted a letter dated 13th August 2021, requesting the withdrawal of the appeal. The letter stated that the appellant had opted to settle the dispute under the Vivad Se Vishwas Scheme and had received a certificate under Section 5(1) of the Direct Tax Vivad Se Vishwas Act, 2020.

The appellant’s request for withdrawal was supported by the submission of the requisite certificate, indicating that the company had complied with the conditions set forth by the scheme and had resolved the disputed tax arrears for the assessment year 2015-16. The Senior Departmental Representative (DR), Sh. M. Baranwal, who represented the Revenue, raised no objections to the withdrawal request.

Tribunal’s Findings and Judgment

The ITAT took note of the appellant’s request and the absence of any objections from the Revenue. Given that Vishwakarma Enterprises (India) Private Limited had successfully settled the dispute under the Vivad Se Vishwas Scheme and had received the necessary clearance from the designated authority, the Tribunal found no reason to keep the appeal pending.

Accordingly, the ITAT accepted the withdrawal request and dismissed the appeal as withdrawn. The Tribunal’s decision was consistent with the provisions of the Vivad Se Vishwas Scheme, which allows taxpayers to withdraw their appeals once the tax arrears have been settled. The order for withdrawal was pronounced on 31st August 2021, marking the formal conclusion of the appeal process.

Conclusion

The case of Vishwakarma Enterprises (India) Private Limited vs. ITO Ward-26(4) is a clear example of the effectiveness of the Vivad Se Vishwas Scheme in resolving long-pending tax disputes. By opting for this scheme, Vishwakarma Enterprises (India) Private Limited was able to resolve its tax dispute efficiently, avoiding prolonged litigation and the uncertainty of a contested outcome.

The Tribunal’s acceptance of the withdrawal highlights the scheme’s role in reducing the burden of unresolved tax disputes on both taxpayers and the judiciary. It also underscores the importance of providing taxpayers with avenues to settle disputes amicably, which can be beneficial for both the taxpayers and the Revenue Department.

Order Pronounced in the Open Court on 31st August 2021

Signed by:
Vice President: Shri G.S. Pannu
Judicial Member: Ms. Suchitra Kamble

Date of Pronouncement: 31st August 2021

Vishwakarma Enterprises (India) Private Limited vs. ITO Ward-26(4): Withdrawal of Appeal Under Vivad Se Vishwas for Assessment Year 2015-16