Case Law Details
DCIT Vs Danfoss Power Solutions India Pvt. Ltd. (ITAT Pune)
Income Tax Appellate Tribunal (ITAT) Pune dismissed 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 Income Tax (Appeals)-38, New Delhi, dated September 21, 2017. However, during the proceedings, Danfoss Power Solutions requested to withdraw the appeal as it opted for the Vivad Se Vishwas Scheme, 2020, a government initiative to settle pending direct tax disputes.
Danfoss Power Solutions submitted an application on February 8, 2021, stating that it had filed a declaration under Form 1 to opt for the scheme and provided an undertaking in Form 2, waiving its rights to claim any benefit from the pending appeal. The designated authority issued a certificate in Form 3 on February 3, 2021, confirming the acceptance of the application under the Vivad Se Vishwas Rules, 2020. The company requested the tribunal to mark the appeal as withdrawn in light of the settlement.
The departmental representative (DR) did not raise any objections to the withdrawal request. Considering the formal application and lack of opposition, ITAT Pune permitted the withdrawal of the appeal. Consequently, the tribunal dismissed the Revenue’s appeal as withdrawn, closing the case.
This ruling aligns with judicial precedents where courts have allowed the withdrawal of appeals once a taxpayer opts for a government-approved settlement scheme. The Vivad Se Vishwas Scheme was introduced to reduce litigation and facilitate quicker resolution of tax disputes. ITAT’s decision in this case underscores the effectiveness of such schemes in resolving long-standing tax matters.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal preferred by the Revenue emanates from the order of the Ld. CIT(Appeals)-38, New Delhi dated 21.09.2017 for the assessment year 2007-08 as per the grounds of appeal on record.
2. The Ld. AR for the assessee submitted that the assessee wants to withdraw the appeal as the assessee has opted for Vivad Se Vishwas scheme and has filed an application dated 08.02.2021 along with Form-3 in this regard by stating as follows:
“Re. Danfoss Power Solutions India Private Limited („the Company‟) PAN: AAFCS2954P Assessment year (AY) :2007-08 Appeal No. ITA No. 84/PUN/2018
Sub : Application for withdrawal of appeal
We refer to the captioned appeal filed by the Income Tax Department.
In this regard, the Company submits that it has opted for the Vivad Se Vishwas Scheme (‘the Scheme’) for the year under consideration with a view to settle the pending tax dispute. In this regard, the Company filed a declaration in Form no. 1 to opt for the Scheme and further an undertaking in Form no. 2 waiving all its rights to any claims for the captioned appeal as per the procedure laid down in the Direct Tax Vivad Se Vishwas Act, 2020 read with the corresponding Direct Tax Vivad Se Vishwas Rules, 2020 (‘the Rules’). Copy of Form no. 1 and Form no. 2 enclosed as Annexure 1 for your Honors reference.
Subsequently, the designated authority issued a certificate ( Number 238103600030221) dated 3 February, 2021 in Form 3 as prescribed under the Rules confirming the acceptance of the Form 1 and 2. Copy of the Form 3 issued has been enclosed as Annexure 2 for your Honours reference.
In the light of the above, the company requests your honour to kindly mark the aforesaid appeal as withdrawal/settled under the Scheme.
We hope your honour will accede to our request and oblige.”
The Ld. DR has no objection regarding withdrawal application filed by the assessee. Hence, we permit the withdrawal. Appeal of Revenue is dismissed being withdrawn.
3. In the result, the appeal of Revenue is dismissed as withdrawn.
Order pronounced on 09th day of February, 2021.
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