UTV SOFTWARE COMMUNICATIONS PVT. LTD,MUMBAI vs. ACIT CIR 16(1), MUMBAI

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ITA 2024/MUM/2021Status: DisposedITAT Mumbai22 April 2022AY 2013-144 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred in adjudicating the appeal on merits without considering the Vivad se Vishwas Scheme declaration. The appeal was dismissed as withdrawn under the scheme.

What were the facts?

The assessee filed an appeal against the CIT(A)'s order for AY 2013-14. The assessee had filed a declaration under the Vivad se Vishwas Scheme, which was approved and taxes were paid.

What were the issues?

Whether the CIT(A) erred in deciding the appeal on merits without considering the assessee's declaration under the Vivad se Vishwas Scheme.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250,Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI VIKAS AWASTHY & SHRI AMARJIT SINGH

Hearing: 19.04.2022Pronounced: 22.04.2022

आदेश / O R D E R

PER AMARJIT SINGH, AM:

1.

The present appeal filed by the assessee is directed against the order passed by the CIT(A) NFAC, Delhi, which in turn arises from the order passed by the A.O. u/s 143(3) of the Income Tax Act, 1961 for A.Y. 2013-14. The assessee has assailed the impugned order on the following grounds before us:

1. On the facts and in the circumstances of the case, the Hon'ble CIT(A) erred in passing the order under section 250 of the Act without considering the provisions of section 4(2) of the Direct Tax Vivad se Vishwas Act, 2020 UTV Software Communications Pvt. Ltd. Vs. ACIT, Circle 16(1)

(‘VsV Act') as well as the certificate i.e. Form 3, issued by the designated authority under section 5(1) of the VsV Act.

2.

Without prejudice to ground no. 1, on the facts and in the circumstances of the case, the Hon'ble CIT(A) erred in upholding the disallowance of Rs.2,40,88,512 made by the learned Assistant Commissioner of Income Tax 15(2)(1) ('AO') under section 40(a)(ia) of the Act.

3.

Without prejudice to ground no. 1, on the facts and in the circumstances of the case, the Hon'ble CIT(A) erred in upholding the addition made by the learned AO of Rs.18,36,860 based on entries appearing in Form no. 26AS. Each of the above grounds of appeal

is without prejudice to and independent of one another. The Appellant craves leave to add, alter, amend or delete the above grounds of appeal at or before the time of hearing of the appeal, so as to enable the Hon'ble Income Tax Appellate Tribunal to decide this appeal according to law.”

2. The fact in brief is that assessee has filed return of income on 29.12.2013 showing total income of Rs.358,01,900/-. The case was selected for scrutiny and assessment was completed by the A.O u/s 143(3) of the Act and total income was determined at Rs.617,27,270/-.

3. The assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has partly allowed the appeal of the assessee on merit vide order dated 03.09.2021.

4. During the course of appellate proceedings before us, the ld. Counsel submitted that ld. CIT(A) has incorrectly adjudicated the appeal of the assessee on merit without considering that assessee has filed declaration under the Vivad se Vishwas Scheme. In this regard the ld. Counsel has filed paper book comprising copies of Form No. 1 to Form No. 6 filed under the Vivad se Vishwas Scheme. The ld. Counsel further submitted that as per Form No. 5 the designated authority has duly approved the application of the assessee under the Vivad se Vishwas Scheme and the assessee has also paid the due taxes as per the tax arrear amount determined in the case of the assessee.

UTV Software Communications Pvt. Ltd. Vs. ACIT, Circle 16(1)

On the other hand, the ld. D.R could not contrary disprove the fact stated by the assessee.

5.

Heard both the side and perused the material on record. The ld. CIT(A) has adjudicated the appeal of the assessee on 03.09.2016. Before adjudicating this appeal at the level of Ld. CIT(A), assessee has applied for Vivad se Vishwas Scheme on 28.12.2020. The designated authority PCIT-8, Mumbai has approved application of the assessee vide Form No. 3 dated 19.01.2021. Thereafter the assessee has paid the due taxes as per Form No. 4 of the Vivad se Vishwas Scheme on 03.05.2021. However, the ld. CIT(A) has adjudicated the appeal of the assessee on merit on 03.09.2021 without taking into consideration the aforesaid material fact demonstrating that assessee has already filed declaration and undertaking under the Vivad se Vishwas Scheme which was duly approved by the designated authority as per Form No. 3 on 19.01.2021 and the due taxes were also paid on 03.05.2021. Looking to the above facts and material on record we consider that the order of the ld. CIT(A) is not justified. Therefore, we dismiss the appeal of the assessee as withdrawn in accordance with Vivad se Vishwas Act, 2020, subject to a rider that in the unlikely event of the matter not being resolved under the Vivad se Vishwas scheme, then, the assessee shall have liberty to approach the Tribunal for restoration of its aforementioned appeal.

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