VERSATILE VINIMAY PVT. LTD.,DELHI vs. ITO, WARD- 26(2), NEW DELHI

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ITA 4228/DEL/2019Status: DisposedITAT Delhi24 August 2022AY 2008-092 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 held that since the additions/disallowances in the quantum proceedings were settled under the Vivad Se Vishwas Scheme 2020, the penalty imposed does not survive. Consequently, the penalty was cancelled.

What were the facts?

The assessee's appeal was against a penalty order under Section 271(1)(c) for AY 2008-09. The penalty arose from additions/disallowances made in the assessment proceedings.

What were the issues?

Whether a penalty imposed under Section 271(1)(c) survives when the underlying additions/disallowances have been settled under the Vivad Se Vishwas Scheme.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “F” DELHI

Before: SHRI CHANDRA MOHAN GARG & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Aman Garg, CA
For Respondent: Shri Anil Kumar Sharma, Sr. DR

The captioned appeal has been filed by the Assessee against the order of the Commissioner of Income Tax (Appeals)-XXVIII, New Delhi [‘CIT(A)’ in short] dated 30.04.2019 arising from the penalty order dated 26.03.2018 passed under Section 271(1)(c) of the Income Tax Act, 1961 (the Act) concerning AY 2008-09.

2.

At the outset, ld. counsel for the assessee submitted that the penalty imposed under challenge arises from the assessment framed by the Assessing Officer under Section 143(3). The additions/disallowances resulting in imposition of penalty has since been settled under Vivad Se Vishwas Scheme 2020 for which form no.5 issued under the Scheme was adverted.

3.

In the light of such facts where the additions/disallowances in the quantum proceedings stands settled under Vivad Se Vishwas Scheme 2020, the penalty imposed does not survive in term of Scheme. Consequently, the penalty imposed is cancelled.

4.

In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 24/08/2022.

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