ARAWALI FINLEASE PRIVATE LIMITED,DELHI vs. ITO, WARD-3(2), NEW DELHI

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ITA 480/DEL/2020Status: FixedITAT Delhi08 September 2021AY 2009-103 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The Tribunal noted the assessee's submission and the material on record, and directed that the appeal be treated as withdrawn. The Tribunal also granted liberty to the assessee to seek restoration if the dispute is not fully settled under the scheme.

What were the facts?

The assessee filed an appeal against an order passed by the Principal CIT under Section 263 of the Income Tax Act. During the hearing, the assessee expressed a wish to withdraw the appeal, having opted for the Vivad se Vishwas Scheme, 2020.

What were the issues?

The primary issue was the assessee's withdrawal of the appeal due to opting for the Vivad se Vishwas Scheme. The grounds of appeal related to reopening of assessment, additions made, and procedural fairness.

Which sections of the Income-tax Act were involved?

Section 263,Section 147,Section 148,Section 143(3),Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC” : DELHI

Before: SMT. DIVA SINGH & SHRI ANADEE NATH MISSHRA

Hearing: 07.09.2021Pronounced: 08.09.2021

Date of Hearing : 07.09.2021 Date of Pronouncement : 08.09.2021 Hearing conducted via Webex ORDER PER DIVA SINGH, J.M. The present appeal has been filed by the assessee challenging the order dated 22.03.2019 of Pr.CIT, New Delhi u/s 263 of the Income Tax Act, 1961 pertaining to 2009-10 assessment year on the following grounds:

1. “On the facts and circumstances of the case, the Assessing Authority has erred in reopening of the case again u/s 147 of the Act, on the matters already considered, discussed during the course of proceeding of case u/s 148 of the Income Tax Act and therefore, the order passed by the Assessing Officer

ITA.No.480/Del./2020 Arawali Finlease Private Limited on the basis of directions of Pr. CIT u/s 263 of the Act, is bad in law and facts of the case and deserves to be quashed.

2. That the Assessing Officer has grossly erred in making an addition of Rs. 18,36,000/- to the already declared accepted Income, as the amount received was against Sale of Shares and has already been discussed and explained in the original assessment. The addition made deserves to be deleted.

3.

That on the facts and in the circumstances of the case, the setting aside of the original order passed u/s 147/143(3) of the Act, by the Pr. CIT, on the basis of change in Personal opinion is bad in law and facts of the case and the order passed by the Assessing Authority on the basis of directions of Pr. CIT u/s 263 of the Act, deserves to be quashed.

4.

That on the facts and circumstances of the case, the Assessing Authority has erred in law and facts of the case in initiation of reassessment proceeding u/s 147/148 of the Income Tax Act, 1961, without having cogent and definite material on record for the alleged accommodation entries and also without making any enquiry about the information/report received from Investigation wing regarding escapement of Income.

5. That on the facts and circumstances of the case, the AO has not giving enough time to the Company to file their reply not giving time to the Companies to file their reply in response to notice u/s 133(6) of the Income Tax Act, 1961 and, therefore, Principle of Natural Justice has not been followed.

6.

The order passed is against the law and facts of the case and prayed the order be set aside.

7.

Assessee craves leave to add, alter and amend any of the time of hearing or before that.”

2.

At the time of hearing, Ld. AR relying upon the application dated 31st August, 2021 sent by e-mail to the Registry submitted that the assessee wishes to withdrawal the appeal filed. Copy of Form No. 3 it was submitted has been issued by Pr. CIT-10, accepting the assessee’s declaration under the Vivad se Vishwas Scheme, 2020. Copy of the challan payment also filed was relied upon for the prayer. Ld. Sr. DR Shri R.K. Gupta considering the material available on record submitted that the appeal may be treated as withdrawn.

ITA.No.480/Del./2020 Arawali Finlease Private Limited

3. We have heard the parties and perused the material available on record. Considering the submissions in the light of the facts on record the appeal of the assessee, we direct may be treated as withdrawn. Accordingly, the appeal is dismissed as withdrawn.

4. However, before parting by way of abundant caution, we deem it appropriate to observe that in case it is found by the assessee that the dispute under the appeal is not fully settled under the Vivad se Vishwas Scheme then the assessee will be at liberty to approach the ITAT with a prayer for restoration of this appeal in accordance with law.

5.

In the result, the appeal is dismissed as withdrawn.

Order pronounced in the open Court.

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