TELECOMMUNICATIONS CONSULTANTS INDIA LTD.,NEW DELHI vs. DCIT, CIRCLE-16(1), NEW DELHI

This appeal by the assessee is preferred against the order of the ld. CIT(A) dated 06.09.2019 pertaining to Assessment Year 2009-10.

The solitary grievance of the assessee is that the ld. CIT(A) erred in upholding the levy of penalty u/s 271(1)(c) of the Income-tax Act, 1961 [the Act, for short].

At the very outset, the ld. counsel for the assessee drew our attention to the order in Form 5 for full and final settlement of tax arrears u/s 5 r.w.s 6 of the Direct Taxes Vivad se Vishwas Act, 2020 and pointed out that the disputed tax arisen as a result of additions made in the impugned A.Y. has been settled under that Act.

We have carefully perused Form 5 placed on record. We find that the disputed tax demand for A.Y 2009-2010 in amounting to Rs. 4,79,07,132/- has been settled. We, therefore, restore this issue to the file of the Assessing Officer. The Assessing Officer is directed to verify whether the entire demand has been settled in respect of the quantum addition which is cause for levy of the impugned penalty in the impugned appeal and if found correct, allow immunity from levy of penalty as per relevant provisions of the Vivad se Vishwas Act, 2020. With these directions, the appeal of the assessee is allowed.

In the result, the appeal of the assessee in is allowed.