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

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ITA 9129/DEL/2019Status: DisposedITAT Delhi16 March 2023AY 2009-104 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal restored the issue to the Assessing Officer to verify if the entire demand leading to the penalty was settled under the Vivad se Vishwas Act. If confirmed, immunity from penalty was to be granted.

What were the facts?

The assessee's appeal was against the penalty levied under Section 271(1)(c) for AY 2009-10. The assessee had settled the disputed tax demand for this AY under the Direct Taxes Vivad se Vishwas Act, 2020.

What were the issues?

Whether the settlement of tax demand under the Vivad se Vishwas Act grants immunity from penalty under Section 271(1)(c).

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 5,Section 6

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘H’ BENCH,

Before: SHRI N.K. BILLAIYA, & SHRI ANUBHAV SHARMA

For Appellant: Shri Suyash Sinha, Adv
For Respondent: Ms. Sapna Bhatia, CIT-DR
Hearing: 16.03.2023Pronounced: 16.03.2023

PER N.K. BILLAIYA, ACCOUNTANT MEMBER:-

1.

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.

2.

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].

3.

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.

Therefore, the assessee is eligible for immunity from penal provisions of section 271(1)(c) of the Act.

4.

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.

5.

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

The order is pronounced in the open court on 16.03.2023.

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