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K.V. Mohammed Zakir v. Commissioner of Income Tax Thrissur

Civil Appeal · 2021 INSC 543Decided 24 Sept 2021
Civil Appeal No. 2593 of 2018
Justice Hima Kohli

Background

The appellant had a tax dispute pending before the Supreme Court in a civil appeal against the Commissioner of Income Tax. The Central Government's "Direct Tax Vivad Se Vishwas Act, 2020", a one-time amnesty-style scheme allowing taxpayers to settle pending tax disputes on favourable terms, became available, and the appellant decided to use it instead of continuing to litigate.

Decision Breakdown

The appellant applied for leave to withdraw the appeal so as to avail of the Vivad Se Vishwas scheme. The Income Tax Department's counsel had no objection. The Supreme Court allowed the withdrawal application and disposed of the civil appeal as withdrawn, without deciding any of the underlying tax questions on their merits.

Lesson Learnt

Taxpayers with pending litigation can often resolve disputes faster and more predictably through government settlement/amnesty schemes like Vivad Se Vishwas rather than continuing years of appeals; courts will readily permit withdrawal of a case for this purpose when both sides agree.

Official source (sci.gov.in)View Judgment (PDF)

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