2020 (11) TMI 1071 - AT - Income Tax

Vivad Se Vishwas Scheme - Permission seeking withdrawal of the appeals - HELD THAT - Assessee has requested for withdrawal of the appeals filed by the assessee and stated that the assessee has opted to settle the dispute relating to the tax arrears for the assessment years under consideration under the Vivad Se Vishwas Scheme, 2020. Certificates to this effect under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020 have also been filed. DR has no objection. In view of the above, we accept the request of the assessee for withdrawal of the appeals.

Summary

Issues:
Withdrawal of appeals under Vivad Se Vishwas Scheme, 2020.

Analysis:
The judgment pertains to appeals by the assessee for the assessment years 2012-13 and 2011-12 against the order of the learned CIT(A)-31, New Delhi. The counsel for the assessee requested withdrawal of the appeals, stating that the assessee chose to settle the tax arrears dispute under the Vivad Se Vishwas Scheme, 2020. Certificates under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020 were filed in this regard. The Senior DR raised no objection to the withdrawal of the appeals. Consequently, the Tribunal accepted the assessee's request for withdrawal, leading to the dismissal of the appeals.

The decision was made in the presence of both parties during a Virtual Hearing on 20th November, 2020. The Tribunal's order reflects the assessee's decision to opt for the Vivad Se Vishwas Scheme, 2020 to resolve the tax arrears dispute for the relevant assessment years. By accepting the withdrawal of the appeals, the Tribunal acknowledged the assessee's choice to settle the matter through the scheme, thereby concluding the litigation in this regard. The acceptance of the withdrawal signifies the Tribunal's recognition of the assessee's right to avail the scheme's benefits and resolve the tax-related issues through the prescribed mechanism.

In light of the assessee's decision to utilize the Vivad Se Vishwas Scheme, 2020, the Tribunal's acceptance of the withdrawal of appeals indicates a cooperative approach towards resolving tax disputes. The provision of such schemes aims to facilitate the resolution of tax matters in a timely and efficient manner, offering taxpayers an opportunity to settle disputes and avoid prolonged litigation. The Tribunal's decision highlights the importance of alternative dispute resolution mechanisms in tax matters and emphasizes the significance of taxpayer-friendly initiatives like the Vivad Se Vishwas Scheme in promoting tax compliance and reducing litigation burdens.