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Facts
The assessee, Dev Diamonds, filed appeals against penalty orders passed under Section 271(1)(c) of the Income Tax Act for Assessment Years 2011-12 and 2014-15, which were subsequently confirmed by the CIT(A). During the appeal proceedings before the ITAT, the assessee opted to resolve the dispute under the Vivad Se Vishwas Scheme-2024.
Held
The Income Tax Appellate Tribunal dismissed the appeals as withdrawn, acknowledging the assessee's decision to resolve the matter through the Vivad Se Vishwas Scheme-2024. The Tribunal granted liberty to the assessee to restore or revive the appeals if the application under the scheme does not materialize or is not accepted by the department.
Key Issues
The primary issue was the validity of the penalty levied under Section 271(1)(c) of the Income Tax Act for concealed income. A secondary issue arose regarding the procedural handling of appeals when an assessee opts for the Vivad Se Vishwas Scheme-2024.
Sections Cited
271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH
Before: SHRI RAHUL CHAUDHARY & SHRI GIRISH AGRAWAL
O R D E R PER BENCH: These two appeals filed by the assessee are against the orders of Ld. CIT(A), National Faceless Appeal Centre (NFAC), vide order nos. ITBA/NFAC/S/250/2024-25/1070434820(1) and ITBA/NFAC/S/250/2024-25/1070434941(1) dated 18.11.2024 passed against the penalty orders by Income Tax Officer, NFAC, and 6375/MUM/2024 Dev Diamonds., AYs 2011-12 & 2014-15 Delhi, u/s. 271(1)(c) of the Income-tax Act (hereinafter referred to as the “Act”), dated 16.02.2022 and 01.03.2022 for Assessment Years 2011-12 and 2014-15 respectively.
Grounds taken by the assessee in both the appeals are reproduced as under:
1) That Ld. CIT (A) has erred in confirming the penalty Us. 271(1)(c) of the Income Tax Act 1961 (Act) on income tax evaded on the concealed profit.
Brief facts of the case are that a penalty u/s. 271(1)(c) of the Act is levied on the assessee vide order dated 16.02.2022. Aggrieved, assessee filed an appeal before the ld. CIT(A) on 03.03.2022 against the aforesaid penalty order, who confirmed the same. Aggrieved, assessee is in appeal before the Tribunal.
Assessee has placed on record a written submission dated 24.01.2025, wherein it has opted to resolve the dispute in these appeals under ‘Vivad Se Vishwas Scheme-2024’ (VSV, 2024 scheme).
Ld. DR also does not have any objection if the assessee is availing the VSVS scheme and the appeals are dismissed as withdrawn. Considering the facts on record, we find it appropriate to dismiss the appeals as withdrawn, pursuant to the option availed by assessee for resolving the dispute in these appeals under VSV, 2024. Accordingly, appeals of the assessee are dismissed with a liberty to restore / revive the appeals, in
In the result, appeals of the assessee are dismissed as withdrawn.