ACHIEVER GARMENTS PVT. LTD.,NEW DELHI vs. ITO, WARD- 1(3), NEW DELHI

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ITA 3860/DEL/2019Status: DisposedITAT Delhi06 July 2022AY 2008-094 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal had become infructuous due to the assessee opting for the Vivad se Vishwas Scheme. Therefore, the appeal was treated as withdrawn and dismissed.

What were the facts?

The assessee filed an appeal against the CIT(A)'s order. During the pendency of the appeal, the assessee opted for the Vivad se Vishwas Scheme, 2020, and received Form-5. The appeal was subsequently treated as withdrawn.

What were the issues?

The primary issues revolved around the validity of reassessment proceedings initiated under Section 147/148 and the validity of service of notice. However, the appeal became infructuous due to the Vivad se Vishwas Scheme.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 144,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’: NEW DELHI

ORDER PER ANADEE NATH MISSHRA, AM: (A) This appeal by Assessee is filed against the order of Learned

Commissioner of Income Tax (Appeals)-I, New Delhi [Ld. CIT(A)”, for short], dated 29.03.2019 for Assessment Year 2008-09. Grounds taken in this appeal of Assessee are as under:

“1. On the facts and in the circumstance of the case and in law action taken u/s 147/148 was illegal, bad in law and invalid in the absence of conditions necessary for taking such valid action. Page 1 of 4

Achiever Garments Pvt. Ltd. vs. ITO

2.

On the facts and in the circumstance of the case and in law the assessment completed u/s 147/144 is also illegal, bad in law and invalid in the absence of valid service of notice u/s 148 prior to completion of assessment.

3.

On the facts and in the circumstance of the case and in law the alleged service of notice u/s 148 by Affixture is no valid service since no efforts were undertaken by the AO to affect the service personally prior to embarking upon service by Affixture. 4. On the facts and in the circumstance of the case and in law and without prejudice to whatever has been stated above even the service by Affixture is not valid in the absence of conditions necessary for a valid service of Affixture. 5. On the facts and in the circumstance of the case and in law the CIT(A) was incorrect and unjustified in holding that service of notice u/s 148 was valid and therefore also incorrect in holding that the objections of the assessee in this regard are rejected. 6. On the facts and in the circumstance of the case and in law the CIT(A) was incorrect and unjustified in holding that the assessment u/s 144 has been rightly framed by the AO. 7. On the facts and in the circumstance of the case and in law the CIT(A) was incorrect and unjustified in holding that the action u/s. 147 taken by the AO was valid and legal. 8. On the facts and in the circumstance of the case and in law the CIT(A) was incorrect and unjustified in holding that addition made by the AO u/s 68 of Rs 93 lakh was rightly made by the AO and hence incorrect and unjustified in upholding this addition. 9. On the facts and in the circumstance of the case and in law the CIT(A) was incorrect and unjustified in upholding the addition of Rs 1,39,500/-. 10. On the facts and in the circumstance of the case and in law the CIT(A) was incorrect and unjustified in holding that provisions of section 68 were attracted in this case. 11. On the facts and in the circumstance of the case and in law the CIT(A) was incorrect and unjustified in dismissing the appeal of the assessee. 12. On the facts and in the circumstance of the case and in law the CIT(A) was incorrect and unjustified in passing the appeal order ignoring the submissions of the assessee filed during appeal proceedings vide letter dated 7/12/2018. 13. On the facts and in the circumstance of the case and in law the CIT(A) was incorrect and unjustified in upholding the service of notices allegedly made by way of Affixture as valid service.”

Achiever Garments Pvt. Ltd. vs. ITO (B) The assessee, vide letter dated 26.07.2021, submitted that the assessee has opted for Vivad se Vishwas Scheme, 2020 (“VSVS”, for short) and that the Designated Authority has already issued Form-5 under VSVS. A copy of Form-5 issued by the Designated Authority was also enclosed with the aforesaid letter; and the assessee applied for withdrawal of appeal. The ld. Senior Departmental Representative for Revenue submitted before us, at the time of hearing, that the appeal has become infructuous in view of the assessee opting for VSVS; and that the appeal may be dismissed as withdrawn. After due consideration and in view of the foregoing, we are of the opinion that this appeal has become infructuous on account of aforesaid VSVS, and that this appeal may be treated as withdrawn on account of the aforesaid VSVS.

Accordingly, this appeal having become infructuous, is treated as withdrawn and is hereby dismissed.

(B.1) Before we part, we hereby clarify, by way of abundant caution, that if for some reason the disputes under this appeal before us are not settled under the aforesaid VSVS, then the Achiever Garments Pvt. Ltd. vs. ITO assessee will be at liberty to approach ITAT for restoration of this appeal in accordance with law.

(C) In the result, this appeal is dismissed.

This order was already pronounced orally on 4th July, 2022 in Open Court. Now this order in writing is signed today on 06.07.2022.

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