GAIL India Appeal Dismissed After Opting for Vivad Se Vishwas

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 As a result, the tribunal dismissed the appeal as withdrawn.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.

FULL TEXT OF THE ORDER OF ITAT DELHI

This appeal by the assessee is arising out of the final assessment order passed by Assessment Unit, Income Tax Department for the assessment year 2018-19 under Section 143(3) read with Section 144C of the Income-tax Act, 1961 vide Order dated 25t^h July, 2022. This order was passed in terms of directions issued by DRP under Section 144C(5) of the Act dated 21st June, 2022. The draft assessment order was framed by AO, National Faceless Assessment Centre, Delhi under Section 143(3) dated 29t^h September, 2021.

2. When this appeal was called for hearing, learned Counsel for the assessee filed petition stating that assessee has opted for The Direct Tax Vivad se Vishwas Scheme, 2024 for the relevant assessment year 2018-19, which is enclosed as Annexure in the petition.

3. Since the assessee has opted for Vivad se Vishwas Scheme, we dismiss this appeal as withdrawn. However, we are granting liberty to the assessee that in case the assessee is not successfully in getting through the Vivad se Vishwas Scheme, it is free to get this order recalled. In terms of the above, the appeal is dismissed is withdrawn.

4. In the result, the appeal of the assessee is dismissed as withdrawn.

Decision pronounced in the open Court on conclusion of hearing on 20th January, 2025.