GAIL India Limited Vs ACIT (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi dismissed GAIL India Limited’s appeal for the assessment year 2018-19 following the company’s decision to opt for the Vivad Se Vishwas Scheme, 2024. The appeal arose from the final assessment order issued by the Income Tax Department’s National Faceless Assessment Centre on July 25, 2022, under Section 143(3) read with Section 144C of the Income-tax Act, 1961. This order was based on directions provided by the Dispute Resolution Panel (DRP) on June 21, 2022, after the draft assessment order was initially framed on September 29, 2021.
During the hearing, GAIL India’s legal counsel informed the tribunal that the company had opted for the Vivad Se Vishwas Scheme to resolve its tax dispute for AY 2018-19. As a result, the tribunal dismissed the appeal as withdrawn. However, the tribunal granted liberty to GAIL India, allowing the company to recall the appeal if it does not successfully resolve the dispute through the scheme. This decision was pronounced in open court on January 20, 2025, marking the conclusion of the hearing.
The case highlights the use of the Vivad Se Vishwas Scheme as a mechanism for resolving tax disputes, providing taxpayers with an alternative path to settle disputes outside litigation while retaining the right to appeal if the resolution is unsuccessful.
