The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘SMC-1’ heard the case of Akhil Bagga, residing at House No.5M-32, NIT, Faridabad, against the Income Tax Officer, Ward-1(1), Faridabad, concerning the assessment year 2011-12. The hearing was conducted through video conferencing, with the bench presided over by Shri H.S. Sidhu, Judicial Member. The order was pronounced on 28th December 2020.
The appeal was filed by Akhil Bagga against the order of the Commissioner of Income Tax (Appeals), Faridabad, dated 28th June 2019. The appeal was related to the assessment year 2011-12, wherein the appellant challenged the assessment order passed by the ITO, Ward-1(1), Faridabad. However, during the proceedings, the learned counsel for the appellant, Shri Lalit Mohan, requested the withdrawal of the appeal, stating that the appellant was contemplating availing the ‘Vivad Se Vishwas Scheme, 2020’ to settle the pending tax dispute. The appellant submitted an application on 27th December 2020, along with copies of Form No. 1 and Form No. 2, indicating the intention to resolve the dispute under the scheme.
During the hearing, the learned counsel for the appellant reiterated the request to withdraw the appeal, as the appellant had chosen to participate in the ‘Vivad Se Vishwas Scheme, 2020’. The respondent, represented by Senior Departmental Representative (DR) Shri Prakash Dubey, did not raise any objections to the withdrawal of the appeal.
Considering the appellant’s request and the lack of objection from the respondent, the Tribunal accepted the withdrawal of the appeal. The bench provided the appellant with the liberty to re-institute the appeal if Form No. 3, confirming the settlement under the ‘Vivad Se Vishwas Scheme, 2020’, was not issued by the competent authority. The Tribunal assured that any such application for recalling the order would be decided in accordance with the law.
The ‘Vivad Se Vishwas Scheme, 2020’ is an initiative by the Government of India aimed at reducing litigation and settling tax disputes. Under this scheme, taxpayers can resolve their disputes by paying the disputed tax amount without additional interest or penalties. The scheme offers a pragmatic approach for both the government and taxpayers to clear the backlog of pending cases, thereby reducing the burden on the judicial system.
In this case, Akhil Bagga’s decision to withdraw the appeal and opt for the ‘Vivad Se Vishwas Scheme, 2020′ reflects a strategic choice to resolve the tax dispute efficiently. The Tribunal’s acceptance of the withdrawal, along with the provision for re-institution if necessary, demonstrates the flexibility and responsiveness of the legal system in accommodating taxpayers’ choices within the framework of available schemes.
The ITAT’s order on 28th December 2020 concluded with the dismissal of the appeal filed by Akhil Bagga, as requested by the appellant. The dismissal was in light of the appellant’s decision to participate in the ‘Vivad Se Vishwas Scheme, 2020’. The order highlights the significance of such schemes in offering taxpayers alternative avenues to settle disputes while preserving their right to appeal if the settlement does not materialize as expected.
This case underscores the importance of the ‘Vivad Se Vishwas Scheme, 2020’ as an effective tool for dispute resolution, enabling taxpayers to avoid prolonged litigation and settle their tax liabilities amicably.
The order was pronounced in the open court, marking the formal conclusion of the appeal in favor of withdrawal.
Withdrawal of Appeal in the Case of Akhil Bagga vs ITO for AY 2011-12
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