Withdrawal of Appeal in the Case of Anand Bagga vs ITO for AY 2011-12

Withdrawal of Appeal in the Case of Anand Bagga vs ITO for AY 2011-12

The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘SMC-1’ heard the case of Anand 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 comprising Shri Bhavnesh Saini, Judicial Member, and Shri O.P. Kant, Accountant Member. The order was pronounced on 5th January 2021.

Background of the Case

The case involved an appeal filed by Anand Bagga challenging the order of the Commissioner of Income Tax (Appeals)-Faridabad, dated 28th June 2019. The appeal was related to tax arrears for the assessment year 2011-12. However, during the proceedings, the learned counsel for the appellant requested the withdrawal of the appeal, stating that the appellant had opted to settle the dispute under the ‘Vivad Se Vishwas Scheme, 2020’. The appellant had applied for the settlement using Form Nos. 1 and 2, with Form No. 3 still awaited.

Proceedings and Decision

During the hearing on 24th December 2020, the learned counsel for the appellant, Shri Lalit Mohan, CA, requested the withdrawal of the appeal. The request was made based on the appellant’s decision to resolve the tax dispute under the ‘Vivad Se Vishwas Scheme, 2020’. The respondent, represented by Shri Sriprakash Dubey, Senior Departmental Representative (DR), did not object to the withdrawal.

The bench, after considering the request, accepted the withdrawal of the appeal. However, the bench provided a safeguard for the appellant, stating that if the dispute concerning the tax arrears is not ultimately resolved under the ‘Vivad Se Vishwas Scheme, 2020’, the appellant would be at liberty to approach the Tribunal for the re-institution of the appeal. The Tribunal assured that any such application would be considered appropriately as per the law.

Significance of the ‘Vivad Se Vishwas Scheme, 2020’

The ‘Vivad Se Vishwas Scheme, 2020’ was introduced by the Government of India to provide a mechanism for taxpayers to settle their tax disputes with minimal litigation. The scheme allows taxpayers to pay the disputed tax amount without incurring additional interest or penalties, provided they opt for the scheme within a specified period. This initiative was part of the government’s efforts to reduce litigation and clear the backlog of cases pending before various appellate forums.

In the case of Anand Bagga, the decision to withdraw the appeal and opt for the ‘Vivad Se Vishwas Scheme, 2020’ reflects the appellant’s intent to resolve the dispute efficiently. The Tribunal’s acceptance of the withdrawal, with provisions for re-institution, highlights the flexibility provided by the legal framework to ensure that taxpayers have avenues to resolve their disputes.

Conclusion

In conclusion, the ITAT’s order on 5th January 2021 dismissed the appeal filed by Anand Bagga, as requested by the appellant. The decision was influenced by the appellant’s participation in the ‘Vivad Se Vishwas Scheme, 2020’. The order underscores the importance of such schemes in providing taxpayers with alternative mechanisms to settle disputes, while also ensuring that their rights to appeal are preserved if the settlement process does not conclude as expected.

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 Anand Bagga vs ITO for AY 2011-12