GUNJAN GUPTA ,UTTAR PRADESH vs. INCOME TAX OFFICER, AGRA

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ITA 230/AGR/2026Status: DisposedITAT Agra21 May 2026AY 2014-152 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that once the tax dispute is settled under the Vivad Se Vishwas Scheme, immunity is granted, and there is no basis for levying penalty under section 271(1)(c). Therefore, the penalty levied is cancelled.

What were the facts?

The assessee had a dispute for AY 2014-15 which was subject to an assessment order under section 271(1)(c). The assessee subsequently opted to settle the dispute under the Direct Tax Vivad Se Vishwas Scheme, 2024.

What were the issues?

Whether penalty under section 271(1)(c) can be confirmed when the tax dispute has been settled under the Vivad Se Vishwas Scheme.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA BENCH “SMC”: AGRA

For Appellant: Shri Deepesh Garg, Adv
For Respondent: Shri Anil Kumar, Sr. DR
Hearing: 20/05/2026Pronounced: 21/05/2026
1.

The appeal in ITA No. 230/AGR/2026 for AY 2014-15, arises out of the order of the ld National Faceless Appeal Centre, Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 24.02.2026 against the order of assessment passed u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 24.03.2025 by the Assessing Officer, NFAC, Delhi (hereinafter referred to as ‘ld. AO’).

2.

The only issue to be decided in this appeal is as to whether the penalty under section 271(1)(c ) of the Act could be confirmed in the hands of the assessee in the facts and circumstances of the instant case.

3.

I have heard the rival submissions and perused the materials available on record. I find that assessee had opted to settle the dispute arising for assessment year under consideration by availing Direct

ITA No. 230/AGR/2026 Ms. Gunjan Gupta

Tax Vivad Se Vishwas Scheme, 2024 and had paid the disputed taxes thereon. The copy of Form No. 4 is reproduced in page 7 of the order of the Learned CITA which proves that assessee had completely settled the tax dispute for assessment year 2014-15. Once the tax dispute is settled under Vivad Se Vishwas Scheme, there is no question of levy of penalty under section 271(1)(c ) of the Act as assessee would be eligible for immunity under the said Scheme itself. Accordingly, the penalty levied under section 271(1)(c ) of the Act would have no legs to stand and is hereby cancelled. The grounds raised by the assessee are allowed.

4.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 21/05/2026.

-Sd/- (M. BALAGANESH) ACCOUNTANT MEMBER Dated: 21/05/2026 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, AGRA BENCH

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