HIREN V. SHAH,MUMBAI vs. ACIT-25(2), MUMBAI

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ITA 2228/MUM/2021Status: DisposedITAT Mumbai27 April 2022AY 2011-123 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 tax dispute for the assessment year under consideration was settled under the Vivad Se Vishwas Act. Therefore, the appeal filed by the assessee had become infructuous.

What were the facts?

The assessee had filed an appeal before the ITAT for assessment year 2011-12. Subsequently, the assessee opted for settlement under the Direct Tax Vivad Se Vishwas Act, 2020, and completed all formalities, including receiving Form 5 for full and final settlement.

What were the issues?

Whether an appeal before the ITAT remains valid after the tax dispute has been settled under the Vivad Se Vishwas Act.

Which sections of the Income-tax Act were involved?

Section 250,Section 5(1),Section 5(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “H” BENCH, MUMBAI

Before: SHRI PRAMOD KUMAR & SHRI SANDEEP SINGH KARHAIL

For Respondent: Smt. Somogyan Pal - CIT

The present appeal has been filed by the assessee challenging the impugned order dated 06.10.2021, passed under section 250 of the Income Tax Act, 1961 ("the Act") by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, (“learned CIT(A)”) for the assessment year 2011–12.

2.

The assessee, vide its letter dated 09.04.2022, submitted that it had preferred settlement under Direct Tax Vivad Se Vishwas Act, 2020 (“VSV Act”) and filed necessary Form 1. The assessee further submitted that Hiren V. Shah ITA no.2228/Mum./2021 pursuant thereto, Form 3 under section 5(1) of the VSV Act was also issued on 28.11.2020 determining the amount payable by the assessee. The same was duly complied by the assessee and Form 4 under section 5(2) of the VSV Act was issued on 10.02.2021 acknowledging the receipt of payment. The assessee has also filed copy of Form 5 dated 18.09.2021 issued by the Principal Commissioner of Income Tax under section 5(2) of the VSV Act towards full and final settlement of tax arrears for the assessment year under consideration. The assessee submitted that, despite the above, learned CIT(A) has passed the impugned order dated 06.10.2021.

3.

When the appeal was called for hearing, no one was present on behalf of the assessee to represent the case. Considering that assessee has already settled the tax dispute under the VSV Act for the year under consideration, we proceed to dispose of the appeal ex-parte qua the assessee after hearing the learned Departmental Representative (“learned D.R.”) and on the basis of material available on record.

4.

Learned D.R. also confirmed the fact that Form 5 under section 5(2) of the VSV Act has been issued in the case of assessee.

5.

Though, the assessee has filed all the Forms before us in respect of settlement of tax dispute for year under consideration under VSV Act, however, it is not clear whether assessee filed any application before learned CIT(A) seeing withdrawal of its appeal in view of settlement under VSV Act. Be that as it may, as Form 5 has been issued on 18.09.2021 towards full and final settlement of tax arrears for the assessment year under 2

Hiren V. Shah ITA no.2228/Mum./2021 consideration and tax dispute has been settled under VSV Act, the present appeal filed by assessee has become infructuous and is accordingly dismissed.

6.

In the result, appeal by the assessee is dismissed. Order pronounced in the open court on 27.04.2022

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