VENKATA REDDY SATHI,KAKINADA vs. THE INCOME TAX OFFICER, WARD-1, KAKINADA

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ITA 499/VIZ/2025Status: DisposedITAT Visakhapatnam14 May 2026AY 2016-176 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the dispute was settled under the Vivad Se Vishwas Scheme, the impugned order passed by the CIT(A) would not survive. The appeal before the CIT(A) was treated as withdrawn.

What were the facts?

The assessee filed an appeal before the ITAT with a delay. The assessee had also opted for the Direct Tax Vivad Se Vishwas Scheme, 2020, to settle the dispute. However, due to a bonafide mistake, the application for withdrawal of appeal was filed in the wrong appeal before the CIT(A).

What were the issues?

Whether the delay in filing the appeal should be condoned given the settlement under the Vivad Se Vishwas Scheme and the bonafide mistake in withdrawing the appeal.

Which sections of the Income-tax Act were involved?

Section 139,Section 148,Section 271(1)(c),Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM “SMC” BENCH : VISAKHAPATNAM AT HYDERABAD

Before: SHRI VIJAY PAL RAO & SHRI OMKARESHWAR CHIDARA

Hearing: 12.05.2026

PER VIJAY PAL RAO, VICE PRESIDENT:

This appeal by the Assessee is directed against the Order dated 05.02.2025 of the learned CIT(A)-National Faceless Appeal Centre [in short “NFAC], Delhi, for the assessment year 2016-2017.

2 ITA.No.499/Viz./2025 2. There is a delay of 112 days in filing the present appeal before the Tribunal. The assessee has filed a petition/affidavit for condonation of delay.

3.

The learned Authorised Representative of the Assessee has submitted that the assessee is an individual and filed his return of income for the year under consideration u/sec.139 of the Income Tax Act [in short "the Act"], 1961 declaring total income of Rs.4,75,040/-. Thereafter, the case of the assessee was reopened by issuing notice u/sec.148 of the Act on 29.07.2022 and re-assessment order was passed by the Assessing Officer on 23.05.2023. The assessee filed an appeal against the re-assessment order before the learned CIT(A) on 06.06.2023. Thereafter, the Assessing Officer also passed penalty order u/sec.271(1)(c) of the Act on 01.01.2024 which was also challenged by the assessee by filing an appeal before the learned CIT(A) on 20.01.2024. The learned Authorised Representative of the Assessee has thus submitted that both the appeals against the assessment order as well as against the penalty order were pending adjudication before the learned CIT(A) and in

3 ITA.No.499/Viz./2025 the meantime, the assessee also filed the declaration under Direct Tax Vivad Se Vishwas Scheme, 2020 on 22.07.2024. The Designated Authority issued Form-1 under Direct Tax Vivad Se Vishwas Scheme on 31.01.2025 and Form-2 on 13.02.2025. After receipt of Form-2 the assessee filed an application before the learned CIT(A) for withdrawal of the appeal however due to bonafide and an inadvertent mistake that application was filed in the penalty appeal instead of quantum appeal pending before the learned CIT(A). The learned CIT(A) in the meantime passed the impugned order on 05.02.2025 and assessee was under the belief and impression that the appeal of the assessee was dismissed as withdrawn in view of dispute settled under Direct Tax Vivad Se Vishwas Scheme. Since the learned CIT(A) has set aside the matter back to the file of Assessing Officer and only when the assessee received a notice u/sec.142(1) of the Act dated 11.08.2025 from the Faceless Assessment Unit he realised that the learned CIT(A) has already passed the order in the quantum appeal and the appeal was not dismissed as withdrawn as applied by the assessee in view of the dispute

4 ITA.No.499/Viz./2025 settled under Direct Tax Vivad Se Vishwas Scheme. The learned Authorised Representative of the Assessee has also referred to Form-3 issued by the Designated Authority on 25.02.2025 as well as Form-4 on 01.04.2025. He has thus submitted that immediately after receiving the notice u/sec.142(1), the assessee filed the present appeal on 20.08.2025 resulting delay of 112 days in filing the appeal. Thus, the learned Authorised Representative of the Assessee has submitted that the delay in filing the appeal is neither wilful nor deliberate but due to the Bonafide misunderstanding about the withdrawal of the appeal before the learned CIT(A).

4.

On the other hand, the learned DR has not seriously objected to the condonation of delay as the dispute is already settled under Direct Tax Vivad Se Vishwas Scheme, 2020 and the learned CIT(A) has passed the impugned order due to non-communication of the fact about the settlement of the dispute under Direct Tax Vivad Se Vishwas Scheme, 2020.

5 ITA.No.499/Viz./2025 5. We have considered the rival submissions as well as the relevant material on record. It is manifest from record that the dispute involved in the appeal before us as well as before the learned CIT(A) was settled under Direct Tax Vivad Se Vishwas Scheme, 2020 and the Designated Authority issued Form-4 on 01.04.2025 which is reproduced as under:

6 ITA.No.499/Viz./2025 5.1. In view of the above fact that the dispute is already settled under Direct Tax Vivad Se Vishwas Scheme, 2020, the impugned order passed by the learned CIT(A) would not survive. Accordingly, in the facts and circumstances of the case and in the interest of justice, we set aside the impugned order passed by the learned CIT(A) and treating the appeal filed by the assessee before the learned CIT(A) being withdrawn in view of settlement of the dispute under Direct Tax Vivad Se Vishwas Scheme, 2020. We Order accordingly.

6.

In the result, appeal of the Assessee is allowed.

Order pronounced in the open Court on 14.05.2026.

Sd/- Sd/- [OMKARESHWAR CHIDARA] [VIJAY PAL RAO] ACCOUNTANT MEMBER VICE PRESIDENT Hyderabad, Dated 14th May, 2026. VBP Copy to Venkata Reddy Sathi, D.No.52-1-42/2°, Narasimhna Road, Jaganatha 1. Puram, KAKINADA – 533 002. State of Andhra Pradesh. The Income Tax Officer, Ward-1, Income Tax Office, 3rd Floor, Deepthi 2. Towers, Main Road, KAKINADA. PIN – 533 001. State of Andhra Pradesh. 3. The Pr. CIT, VIJAYAWADA. State of Andhra Pradesh. 4. The DR ITAT “Visakhapatnam” SMC-Bench, Visakhapatnam 5. Guard File //By Order// VADREVU Digitally signed by VADREVU PRASADA PRASADA RAO Date: 2026.05.14 RAO 10:45:42 +05'30'

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