MUZAFFARNAGAR DISTRICT COOPERATIVE BANK LTD.,MUZAFFARNAGAR vs. ACIT, CIRCLE- 1, MUZAFFARNAGAR

PDF · subscribers
ITA 8322/DEL/2018Status: DisposedITAT Delhi03 August 2022AY 2008-093 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that since the quantum additions were settled under the Vivad se Vishwas Act, no penalty should be levied under Section 271(1)(c). The appeals were restored to the AO for fresh adjudication.

What were the facts?

The assessee's appeals were against penalties levied under Section 271(1)(c) for assessment years 2008-09, 2009-10, and 2013-14. The assessee had settled the quantum additions under the Direct Tax Vivad se Vishwas Act, 2020.

What were the issues?

Whether penalty under Section 271(1)(c) can be levied when the underlying quantum addition has been settled under the Vivad se Vishwas Act, 2020.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 5(2),Section 6

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. YOGESH KUMAR US

Hearing: 03/08/2022Pronounced: 03/08/2022

Appellant Sh. Ankit Gupta, Advocate Respondent Sh. Vivek Sharma, CIT DR Date of hearing: 03/08/2022 Date of Pronouncement: 03/08/2022 ORDER PER N.K. BILLAIYA, AM:

8323/Del/2018 and 8325/Del/2018 are three separate appeals by the assessee preferred against the three separate orders of the CIT(A), Muzaffarnagar dated 27.09.2018 pertaining to A.Y.2008-09, 2009-10 and 2013-14.

2.

At the very outset the Counsel for the assessee stated that the impugned appeals are in relation to the penalty levied by the AO u/s. 271 (1) (c) of the Act.

3.

The Counsel pointed out that in so far as the quantum addition are concerned the quarrel has been settled under the DTVSVS Act, 2020 and, therefore, as per the relevant provisions of the Act no penalty should be levied u/s. 271 (1) (c) of the Act.

4.

We have the benefit of the certificate issued by the designated authority in form No.5 which is an order for full and final settlement of tax arrear u/s. 5 (2) r.w.s. 6 of the DTVSVS Act, 2020. In our considered opinion where the quantum quarrel has been settled by the assessee under direct tax DTVSVS Act, 2020 no penalty should be levied u/s. 271 (1) (c) of the Act.

5.

We accordingly restore the impugned appeals to the files of the AO. The AO is directed to decide the levy of penalty u/s. 271 (1) (c) of the Act in the light of the relevant provisions of the DTVSVS Act, 2020 after giving a reasonable and sufficient opportunity of being heard to the assessee.

6.

With the above directions of the appeal are allowed.

7.

Decision announced in the open court on 03.08.2022.

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →