ARAVALI DREAMWORLD LLP,JAIPUR vs. ITO WARD 1(4), JAIPUR, JAIPUR

IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR “SMC” BENCH, JAIPUR (PHYSICAL HEARING) BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No: 1620/JPR/2025 Assessment Year: 2022-23

Aravali Dreamworld LLP ITO, J-17, Sahkar Marg, Lal Ward-1(4), Vs Kothi, J Block, Jaipur. Jaipur PAN: ABKFA2227L (Respondent) (Appellant)

Assessee Represented: Sh. Shravan Kumar Gupta, Adv. Revenue Represented: Ms. Aarti Rawat, Addl.CIT Date of hearing : 18-08-2026 Date of pronouncement : 31-08-2026 ORDER PER : KULDIP SINGH, JUDICIAL MEMBER:-

The Appellant, Aravali Dreamworld LLP (hereinafter referred to as the ‘assessee’) by filing the present appeal, sought to set aside the impugned order dated 16.06.2025 passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] qua assessment year 2022-23 on the grounds inter-alia that:- “1. The impugned order u/s 143(3) rws 144B dated 07.03.2024, are bad in law, illegal, invalid, void ab-intio on facts of the case, for want of jurisdiction, and also barred by limitation and various other reasons and hence the same may kindly be quashed.

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pending for consideration under VSV Scheme-2024, but the Ld. CIT(A) dismissed the appeal as withdrawn, whereas in the appeal before Ld. CIT(A), now withdrawn, Form 2 of VSV Scheme-2024 was incorrect/wrong showing incorrect tax liability, hence the assessee had to take decision whether the appeal was to be filed before ITAT or application u/s 154 needs to be filed before the Ld. CIT(A) or application before Ld. PCIT is to be filed to revise Form 2 VSV Scheme-2024. 3. In the mean time brother in law of the lawyer of Shri Vipin Garg, Chartered Accountant was hospitalized in ICU in Guntur, Vijaywada and he left for Vijaywada to look after him in the month of August and thereafter he remained busy in filing ITR as 15th September was the last date; that counsel engaged by the assessee thereafter filed the appeal with delay of 75 days. Ld. DR for the Revenue opposed the application for condonation of delay on the ground; that the assessee and his counsel remained negligent throughout and as such no sufficient reasons have come on record to condone the delay. 4. We are of the considered view that when the assessee has filed the appeal before Ld. CIT(A) and during pendency of appeal the

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assessee availed off opportunity to get the issue decided under DTVSV Scheme-2024 and filed Form 1 before Ld. CIT(A). Thereafter Form 2 DTVSV Scheme-2024 was also issued, but it was showing incorrect tax liability, hence the assessee could not pay the settled tax amount; that his counsel could not decide whether to file the application u/s 154 before Ld. CIT(A) or to file application before Ld. PCIT to file revised Form 2 under DTVSV Scheme-2024 or to file the appeal before ITAT. 5. The assessee was having “sufficient cause” that his counsel Shri Vipin Garg, CA remained stuck at Guntur, Vijaywada where his brother in law was hospitalized in ICU and that time taken by the lawyer to decide as to taking further action is also a “sufficient cause” to condone the delay. All these facts go to prove that the assessee was having “sufficient cause” not to file the appeal within time and as such delay of 75 days is hereby condoned and the appeal is being heard on merits. 6. Briefly stated, facts necessary for consideration and adjudication of the issues at hand are : Assessee is doing construction activity as builder and developers. Assessee’s return of income for A.Y. 2022-23 declaring Nil income was subjected to

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scrutiny. Assessee claimed deduction for industrial undertaking u/s 80IA/80IAB/80IAC/80IB of the Income Tax Act, 1961 (hereinafter referred to as the “Act”). Declining the contention raised by the assessee, the AO proceeded to decline the deduction claimed by the assessee to the tune of Rs. 16,38,243/- and made addition thereof to the total income of the assessee and thereby framed assessment u/s 143(3) r.w.s 144B of the Act. 7. Assessee carried the matter before the Ld. CIT(A) by way of filing appeal, who has dismissed the same as withdrawn. Feeling aggrieved with the impugned order passed by the Ld. CIT(A), assessee has come up before the Tribunal by way of filing the present appeal. 8. We have heard Ld. ARs for the assessee and Ld. DR for the Revenue and perused the record available on file. 9. This is peculiar case in which during the appellate proceedings before the first appellate authority the assessee applied under Direct Tax Vivad Se Vishwas Scheme 2024 (for short DTVSV Scheme-2024) and necessary Form no. 2 has been issued by the designated authorities. It is also a matter of record that the assessee had received Form 2 with incorrect tax liability under DTVSV Scheme-

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2024 and requested for making payment of taxes. He has also filed application for withdrawal of the appeal. Accordingly on the application moved by the assessee, Ld. CIT(A) permitted withdrawal of the appeal. 10. It is a case of the assessee that during proceedings before first appellate authority Form 2 of DTVSV Scheme-2024 was issued to make the payment of settled amount but it was transpired that Form 2 (supra) was showing incorrect tax liability. It is case of the assessee that this fact was brought on record to the notice, Ld. CIT(A) but due to mistake Ld. CIT(A) instead of calling for correct Form 2 showing correct tax liability, proceeded to dismiss the appeal as withdrawn. 11. We are of the considered view that when the assessee had opted for settlement under DTVSV Scheme-2024 and duly applied in Form 1, on the basis of which Form 2 under DTVSV Scheme-2024 was issued for payment of taxes, which was showing incorrect tax liability, Ld. CIT(A) was required to grant time to the assessee to get the correct Form 2 issued from the concerned authority before dismissing the appeal as withdrawn. Since the assessee has already remitted part amount and ready to pay remaining amount of

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settlement under DTVSV Scheme-2024, in justice has been caused to him because neither he could get his appeal decided on merits nor he could get the same settled through DTVSV Scheme-2024. 12. In these circumstances, we are of the considered view the impugned order passed by the Ld. CIT(A) is liable to be set aside to be decided afresh after providing reasonable opportunity to the assessee to get correct Form 2 under DTVSV Scheme-2024 issued if permissible under Rules or to get his appeal decided on merits. 13. Resultantly, the appeal filed by the assessee is allowed for statistical purpose, to be sent back to Ld. CIT(A) to decide afresh in accordance with law.

Order pronounced in the open court on 31-08-2026.

Sd/- Sd/- (ANNAPURNA GUPTA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Jaipur Dated:- 31/08/2026. *Santosh. Copy of the order forwarded to: 1. The Appellant- 2. The Respondent- 3. CIT 4. CIT(A) 5. DR, ITAT, Jaipur. 6. Guard File By order,

Asst. Registrar