Loading judgment…
Facts
The assessee opted to settle tax for AY 2015-16 under the Vivad Se Vishwas Scheme. The sale consideration for long-term capital gain was received in AY 2015-16. The deed of conveyance was executed in AY 2016-17, leading to a reassessment for that year.
Held
The Tribunal held that since the transaction was settled under the Vivad Se Vishwas Scheme for AY 2015-16, it could not be taxed again for AY 2016-17. The addition made for AY 2016-17 was directed to be deleted.
Key Issues
Whether a transaction settled under the Vivad Se Vishwas Scheme for one assessment year can be taxed again in a subsequent assessment year.
Sections Cited
249(4)(b), 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SMT. BEENA PILLAI & SHRI GIRISH AGRAWAL
ORDER Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 29/11/2024 passed by NFAC, Delhi for assessment year 2016-17. 2.1 At the outset Ld.AR submitted that the assessee opted to settle the tax for AY 2015-16 under Direct Taxes Vivad Se Vishwas Scheme 2024. Pursuant to which form No. 1 was filed 2 A.Y. 2016-17 Siddheshwar Developers and Contractors on 16.01.2025 and the settlement was completed on 11.04.2025 by issuing Form No.
The Ld.AR relied on the order giving effect to VSV 2024 for AY 2015-16 on 20.06.2025 which is placed on record. The Ld.AR thus pleaded that the same transaction cannot be once again taxed for A.Y. 2016-17, being the year under consideration. 2.2 The Ld.AR submitted that the first appellate authority dismissed assessee’s appeal for A.Y. 2016-17, being the year under consideration because income tax pertaining to LTCG arising from transactions was fully paid on 30/04/2022 for AY 2015-16 and therefore assessee didn’t pay the taxes on the same that was once again added during the AY 2016-17. Ld.CIT(A) invoked section 249(4)(b) of the Act and dismissed the appeal filed by the assessee for AY 2016-17 in limine on the ground that assessee didn’t pay any advance tax for the year.
Ld.AR submitted that there is no dispute that entire sale consideration that led to long term capital gain was tax received in the year 2015-16. The Ld.AO reopened the assessment for the assessment year 2015-16 by issuing a notice u/s 148 for the very same transaction based on the deed of the convenience dated 09.04.2015. 3.1 Considering the above facts it is noted that the transaction has been settled by way of Vivad Se Vishwas Scheme 2024 for AY 2015-16 as the sale consideration was received during A.Y. 2015- 16. The only event that occurred during the relevant year under consideration was that the deed of conveyance was executed by the assessee. As the amount has been now settled by the assessee in VSV for AY 2015-16, no addition can be further be 3 A.Y. 2016-17 Siddheshwar Developers and Contractors made on the same transaction in the subsequent assessment year. 3.2 We therefore, considering the totality of the facts direct the Ld.AO to delete the addition made for AY 2016-17. However liberty is granted to the revenue to file miscellaneous petition if any thing contrary to the above facts could be placed on record. Accordingly the ground raised by the assessee stands allowed. In the result the appeals filed by the assessee stands allowed. Order pronounced in the open court on 29/07/2025