What did the Tribunal hold?

The Tribunal restored the issue to the CIT(A) for a fresh hearing on merits. The assessee was given an opportunity to present their case before the CIT(A).

The assessee's appeal was treated as infructuous by the FAA because the issue was settled under the Vivad se Vishwas Act. However, the assessee's dispute resolution under the scheme failed due to a subsequent rectification order increasing the demand.

What were the issues?

Whether the assessee's appeal should have been treated as infructuous when the Vivad se Vishwas proceedings failed due to a subsequent rectification order.

Mti Materials Private Limited… vs DCIT | ITAT Delhi 2026

Income Tax Appellate Tribunal, DELHI

Before: SHRI ANUBHAV SHARMA & SMT. RENU JAUHRI

For Respondent: Shri Rubal Singh, SR. DR

Pronounced: 07.08.2026

PER SHRI ANUBHAV SHARMA, JUDICIAL MEMBER:

This appeal is preferred by the assessee against the order dated 04.02.2026 of the Ld. National Faceless Appeal Centre, Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2025-26/1085562948(1) arising out of the order dated 25.11.2019 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by DCIT, Circle-17(2). Delhi for AY: 2017-18.

ITA 3249/DEL/2026 MTI MATERIALS PRIVATE LIMITED

On hearing both sides we find that the impugned order has been passed by ld. First Appellate Authority treating the appeal of the assesse to be infructuous on the basis that the issue involved are settled under Direct Tax Vivad se Vishwas Act, 2020. Ld. Counsel has submitted before us that though assesse had taken recourse for supporting the issue in VSVS, Scheme, 2020, however, while assessee’s dispute was pending before competent authority under VSVS, Assessing officer had passed a rectification order wherein demand was increased thereby the settlement could not be arrived and the VSVS proceedings were closed.

In the light of aforesaid, we consider it appropriate case to restore the issue to the files of ld. CIT(A) to give fresh opportunity of hearing to the assesee and pass order on the merits of the ground as raised before ld. First Appellate Authority. The appeal is allowed for statistical purposes.

Order pronounced in the open court on 07.08.2026

Sd/- Sd/- RENU JAUHRI ANUBHAV SHARMA JUDICIAL MEMBER ACCOUNTANT MEMBER

Delhi Dated: 07.08.2026

ITA 3249/DEL/2026 MTI MATERIALS PRIVATE LIMITED

Copy to: MTI MATERIALS PRIVATE LIMITED, B-44A, GT KARNAL ROAD, INDUSTRIAL AREA, ADARSH NAGAR, NORTH WEST 1 DELHI,110033, DELHI , INDIA, NEW DELHI-110033, DELHI DCIT, 2 DCIT CIRCLE 16(1) DELHI, NEW DELHI-110002, DELHI 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE

MTI MATERIALS PRIVATE LIMITED,NEW DELHI vs. DCIT, C.R. BUILDING, DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments