ITAT allows the call withdrawal because the taxpayer opted for the vivad scheme Vishwas

DCIT VS DANFOSS POWER SOLUTIONS INDIA PVT. Ltd. (itat put)

The income appeal court (ITAT) has rejected the appeal filed by the deputy commissioner of income tax (DCIT) against Danfoss Power Solutions India PVT. Ltd. The Appeal Was Related to the Assessment Year 2007-08, and it originated from the order of the Commissioner of Incme Tax (APPEALS) -38, New Delhi, Dated September 21, 2017. Howver, During the Proceedings, DANFOSS POWER SOLUTION The Vivad is Vishwas Scheme, 2020, A Governing Initiative to Settle Pending Direct Tax Disputes.

Danfoss Power Solutions filed an application on February 8, 2021, stating that he filed a statement in accordance with form 1 to opt for the scheme and offered an enterprise in form 2, giving up his rights to request any benefit from the pendent call. The designated authority issued a certificate in form 3 on February 3, 2021, confirming the acceptance of the request in accordance with the Vivad Rules Vishwas, 2020. The company asked the court to mark the appeal as withdrawn in the light of the settlement.

The departmental representative (DR) did not raise objections regarding the request for withdrawal. Given the official application and lack of opposition, ITAT puts the call withdrawal. Consequently, the court rejected the appeal of income as withdrawn, closing the case.

This decision is aligned with the judicial precedents in which the courts have allowed the appeals to withdraw once a taxpayer opt for a government -approved settlement scheme. The Vivad SE Vishwas scheme has been introduced to reduce disputes and facilitate faster resolution of tax disputes. The ITAT decision, in this case, emphasizes the effectiveness of such schemes in solving the long -term fiscal problems.

The full text of the ITAT order puts

This favorite call for income emanates from the order LD. Cit (call) -38, New Delhi from 21.09.2017 for the year of evaluation 2007-08, according to the registered appeal reasons.

2. Ld. AR for the evaluator claimed that the evaluator wants to withdraw the call, because the evaluator opted for the Vivad Schewas scheme and filed a request from 08.02.2021 together with Form-3 in this regard, stating as follows:

“Re. Danfoss Power Solutions India Private Limited (” Company “) PAN: AAFCS2954P Evaluation Year (AY): 2007-08 Call No. ITA No. 84/PUN/2018

Under: Call withdrawal Request

We refer to the subscribed appeal filed by the income tax department.

In this regard, the company claims that it has opted for the Vivad SE Vishwas scheme (the “scheme”) for the year, in consideration, in order to solve the Pendinte fiscal dispute. In this regard, the company submitted a statement under the form no. 1 to opt for the scheme and to continue an enterprise in form no. 2 By renouncing all his rights over any request for the underlined appeal, according to the procedure provided in the Law on Direct Tax Vivad SE Vishwas, 2020 read with the corresponding direct tax rules Vivad, 2020 (“Rules”). Copy of Form no. 1 and form no. 2 Annexed as annex 1 for the reference of honor.

Subsequently, the designated authority issued a certificate (number 238103600030221) of February 3, 2021 in form 3, as prescribed in accordance with the rules confirming the acceptance of form 1 and 2. The copy 3 issued was included as annex 2 for the reference of honor.

In the light of the above, the company requests your honor to mark the appeal mentioned above as withdrawal/settlement within the scheme.

We hope your honor will join our request and force. “

Ld. DR has no objection to the request for withdrawal submitted by the evaluator. Therefore, we allow withdrawal. The call of the income is rejected being withdrawn.

3. As a resultThe call call is rejected as withdrawn.

The order pronounced on February 9, 2021.