NEERA GUPTA,NEW DELHI vs. ACIT, CENTRAL CIRCLE- 13, NEW DELHI

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ITA 6711/DEL/2018Status: DisposedITAT Delhi02 November 2021AY 2015-164 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The tribunal noted that the assessee had opted for the Vivad Se Vishwas Act and the Senior Departmental Representative submitted that the appeal may be treated as withdrawn. The tribunal agreed and dismissed the appeal as withdrawn.

What were the facts?

The assessee filed an appeal against the CIT(A)'s order. During the hearing, it was brought to the tribunal's notice that the assessee had opted for the Vivad Se Vishwas Act, 2021, and had filed the necessary forms.

What were the issues?

Whether the appeal should be dismissed as withdrawn due to the assessee opting for the Vivad Se Vishwas Act, and whether the additions made by the AO under Section 68 and Section 69C were justified.

Which sections of the Income-tax Act were involved?

Section 68,Section 10(38),Section 69C

AI-generated summary — verify with the full judgment below

(A) This appeal by Assessee is filed against the order of Commissioner of Income Tax (Appeal)- XXVI, New Delhi, dated 29th August, 2018 for Assessment Year 2015-16. Grounds taken in this appeal of Assessee are as under:

“1. That the order of the Ld. CIT(A) is bad in law and on facts of the case.

2.

The Ld. Assessing Officer has erred in law and on facts while making addition of Rs. 44,06,420/- u/s 68 by treating the long term capital gain as amount received from accommodation entries and has not applied his mind and not made honest efforts to verify the condition laid down u/s 68 although the transaction are exempt from tax as long term capital gain being fully covered u/s 10(38) of the Income Tax Act 1961 and satisfies all conditions laid down therein. The Ld. Assessing Officer Page 1 of 4 ITA NO.-6711/Del/2018 Neera Gupta has passed the order based upon the information collected from various third party sources by ignoring all evidences of transactions of sales / purchase of shares while making such addition us 68 and independent verification. This has been further upheld by the Ld. CIT(A) in a pre- conceived manner on the basis of surmises and conjectures and also without considering the detailed submission and explanation on merits.

3.

The Ld Assessing Officer has erred in law and facts while adding back on account of disallowances which is without any basis of evidences by taking adhoc percentage of commission on the amount of share transactions exempt from tax u/s 10(3*) as long term capital gain. Thus the addition of Rs. 25,002 on account of such commission u/s 69C is bad in law.

4.

The appellant craves leave to add, amend, alter vary and / or withdraw any or all the above grounds of Appeal.”

(B) At the time of hearing, we took notice of letter dated 13th October, 2021 by KNA Associates, Chartered Accountant. In this letter, it has been intimated that the assessee has opted for Vivad Se Vishwas Act, 2021 (“VSVS”, for short), and has already filed Form 1, 2 and 4 under VSVS. We have also perused copy of Form -3 dated 02/01/2021 issued by the Designated Authority under VSVS; which was also filed from the assessee’s side alongwith above mentioned letter. In view of this, the learned Senior Departmental Representative (“Ld. Sr. DR”, for short) submitted before us that this appeal may be treated as withdrawn and may be dismissed on account of the aforesaid VSVS. After due consideration, and in view of the foregoing; we treat this appeal as withdrawn on account of the aforesaid VSVS. Accordingly, this appeal is dismissed, as withdrawn.

(B.1) Before we part, we hereby clarify, by way of abundant caution, that if for some reason it is found by the Assessee that the disputes under this appeal

ITA NO.-6711/Del/2018 Neera Gupta before us are not fully settled under the aforesaid VSVS, then Assessee will be at liberty to approach ITAT for restoration of this appeal, in accordance with law.

(C) In the result, this appeal is dismissed.

This order was orally pronounced on 28th October, 2021 in Open Court, in the presence of Sr. DR for the Revenue, after conclusion of the hearing. Now this order in writing is signed today on 02/11/2021.

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