SUDHANSHU RATHI,DELHI vs. DCIT, CENTRAL CIRCLE, NOIDA
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal noted that the appeals had become infructuous due to the assessee opting for the VSVS scheme. Both parties agreed that the appeals should be withdrawn and dismissed.
What were the facts?
The assessee filed appeals against the CIT(A)'s order confirming additions made by the AO. During the pendency of the appeals, the assessee opted for the Vivad Se Vishwas Scheme (VSVS).
What were the issues?
The primary issue was the validity of the assessment proceedings under Section 153A and the additions made by the AO. However, the appeals were disposed of due to the assessee's participation in the VSVS scheme.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
PER BENCH: (A) For the sake of convenience and brevity these appeals by assessee are disposed off through this consolidated order. Grounds taken in these appeals of the Assessee are as under:
ITA No.-5515/Del/2018 “1) That having regard to the fact and circumstances of the case, Ld. CIT (A) has erred in law and on facts in confirming the action of Ld. AO in assuming jurisdiction and issue of notice u/s 153A r/w section 143(3) of the Income Tax Act, 1961 by Ld. Assessing Officer and the consequent assessment proceedings in the case are bad in law and against the facts and circumstances of the case and void-abinitio and basic jurisdictional conditions and pre-requisites under section 153 A were not met.
ITA No.- 5515/Del/2018 and others. Shri Sudhanshu Rathi. 2) That in any case and in any view of the matter, the assessment framed under section 153 A of the Act, is bad in law and against the facts and circumstances of the case. 3) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in making an addition of a sum of Rs. 4,33,189/- being rent paid, commission expenses, miscellaneous expenses, conveyance, telephone and other expenses holding the same to have been incurred allegedly for non business purpose that too without any basis and merely on the basis of surmises and conjectures, in the proceedings u/s 153 A of the Act, and more so when there was no incriminating material found as a result of search. 4) That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making addition of Rs. 4,33,189/- is bad in law and against the facts and circumstances of the case. 5) That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. A.O. in passing the impugned assessment order without there being requisite approval in terms of section 153D and in any case approval if any is mechanical without application of mind and is no approval in the eyes of law. 6) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. A.O. in passing the impugned order and that too without giving adequate opportunity of hearing and without observing the principle of natural justice. 7) That the appellant craves the leave to add, alter or amend the grounds of appeal at any stage and all the grounds are without prejudice to each other.”
ITA No.-5517/Del/2018 “1) That having regard to the fact and circumstances of the case, Ld. CIT (A) has erred in law and on facts in confirming the action of Ld. AO in assuming jurisdiction and issue of notice u/s 153A r/w section 143(3) of the Income Tax Act, 1961 by Ld. Assessing Officer and the consequent assessment proceedings in the case are bad in law and against the facts and circumstances of the case and void-abinitio and basic jurisdictional conditions and pre-requisites under section 153 A were not met. 2) That in any case and in any view of the matter, the assessment framed under section 153A of the Act, is bad in law and against the facts and circumstances of the case. 3) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in making an addition of a sum of Rs. 1,98,680/- being conveyance expenses, telephone ITA No.- 5515/Del/2018 and others. Shri Sudhanshu Rathi. expenses and other expenses, news paper & magazine holding the same to have been incurred allegedly for non business purpose that too without any basis and merely on the basis of surmises and conjectures, in the proceedings u/s 153 A of the Act, and more so when there was no incriminating material found as a result of search. 4) That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making addition of Rs. 1,98,680/- is bad in law and against the facts and circumstances of the case. 5) That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. A.O. in passing the impugned assessment order without there being requisite approval in terms of section 153D and in any case approval if any is mechanical without application of mind and is no approval in the eyes of law. 6) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. A.O. in passing the impugned order and that too without giving adequate opportunity of hearing and without observing the principle of natural justice. 7) That the appellant craves the leave to add, alter or amend the grounds of appeal at any stage and all the grounds are without prejudice to each other.”
ITA No.-5518/Del/2018 “1) That having regard to the fact and circumstances of the case, Ld. CIT (A) has erred in law and on facts in confirming the action of Ld. AO in assuming jurisdiction and issue of notice u/s 153A r/w section 143(3) of the Income Tax Act, 1961 by Ld. Assessing Officer and the consequent assessment proceedings in the case are bad in law and against the facts and circumstances of the case and void-abinitio and basic jurisdictional conditions and pre-requisites under section 153 A were not met. 2) That in any case and in any view of the matter, the assessment framed under section 153 A of the Act, is bad in law and against the facts and circumstances of the case. 3) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in making an addition of a sum of Rs. 4,33,189/- being rent paid, commission expenses, miscellaneous expenses, conveyance, telephone and other expenses holding the same to have been incurred allegedly for non business purpose / bogus and that too without any basis and merely on the basis of surmises and conjectures, in the proceedings u/s 153 A of the Act, and more so when there was no incriminating material found as a result of search. 4) That in any case and in any view of the matter, action of Ld. CIT(A) in ITA No.- 5515/Del/2018 and others. Shri Sudhanshu Rathi. confirming the action of Ld. AO in making addition of Rs. 4,33,189/- is bad in law and against the facts and circumstances of the case. 5) That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. A.O. in passing the impugned assessment order without there being requisite approval in terms of section 153D and in any case approval if any is mechanical without application of mind and is no approval in the eyes of law. 6) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. A.O. in passing the impugned order and that too without giving adequate opportunity of hearing and without observing the principle of natural justice. 7) That the appellant craves the leave to add, alter or amend the grounds of appeal at any stage and all the grounds are without prejudice to each other.”
ITA No.-5519/Del/2018 “1) That having regard to the fact and circumstances of the case, Ld. CIT (A) has erred in law and on facts in confirming the action of Ld. AO in assuming jurisdiction and issue of notice u/s 153A r/w section 143(3) of the Income Tax Act, 1961 by Ld. Assessing Officer and the consequent assessment proceedings in the case are bad in law and against the facts and circumstances of the case and void-abinitio and basic jurisdictional conditions and pre-requisites under section 153 A were not met. 2) That in any case and in any view of the matter, the assessment framed under section 153A of the Act, is bad in law and against the facts and circumstances of the case. 3) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in making an addition of a sum of Rs. 78,564/- being conveyance expenses, telephone expenses and other expenses, holding the same to have been incurred allegedly for non business purpose/ bogus that too without any basis and merely on the basis of surmises and conjectures, in the proceedings u/s 153 A of the Act, and more so when there was no incriminating material found as a result of search. 4) That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making addition of Rs. 78,564/- is bad in law and against the facts and circumstances of the case. 5) That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. A.O. in passing the impugned assessment order without there being requisite approval in terms of section 153D and in any case approval if any is mechanical without application of mind and is no approval in the eyes of law. 6) That having regard to the facts and circumstances of the case, Ld. CIT(A) Page 4 of 7 ITA No.- 5515/Del/2018 and others. Shri Sudhanshu Rathi. has erred in law and on facts in confirming the action of Ld. A.O. in passing the impugned order and that too without giving adequate opportunity of hearing and without observing the principle of natural justice. 7) That the appellant craves the leave to add, alter or amend the grounds of appeal at any stage and all the grounds are without prejudice to each other.”
(B) At the time of hearing, the learned Counsel for the Assessee informed us that the assessee has filed application for Vivad Se Vishwas Scheme, 2020 (“VSVS”, for short). He drew our attention to e-mail dated 03.01.2022 filed from assessee’s side in Income Tax Appellate Tribunal (“ITAT”, for short) giving intimation of the same. Alongwith this letter copies of Forms- 1, 2, 3, 4 and 5 have also been attached. It is further stated in this letter that the assessee seeks permission to withdraw the appeals. In view of this, the learned Counsel as well as the Learned Commissioner of Income Tax (Departmental Representative) [“Ld. CIT(DR), for short] submitted before us that these appeals may be allowed to be withdrawn and may be dismissed on account of the aforesaid VSVS. We have also perused copies of Form-5, issued by the Designated Authority under VSVS. After due consideration, we are of the opinion that these appeals have become infructuous on account of aforesaid VSVS, and are hereby allowed to be withdrawn on account of the aforesaid VSVS. In view of the foregoing, and as both sides are in agreement to this, these appeals having become infructuous, are being dismissed, having been withdrawn by the appellant assessee.
(B.1) Before we part, we hereby clarify, by way of abundant caution, that if for some reason the disputes under these appeals before us are not settled under ITA No.- 5515/Del/2018 and others. Shri Sudhanshu Rathi. the aforesaid VSVS, then the assessee will be at liberty to approach ITAT for restoration of these appeals, in accordance with law.
(C) In the result, these appeals are dismissed.
This order was orally pronounced on 3rd January, 2022 in Open Court, in the presence of representatives of both sides, after conclusion of the hearing. Now this order in writing is signed today on 03/01/2022.
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