What did the Tribunal hold?

The Tribunal noted that the appeal had become infructuous due to the assessee's application under the Vivad Se Vishwas Scheme. Consequently, the appeal was treated as withdrawn and dismissed.

The assessee filed an appeal against the CIT(A)'s order confirming the disallowance of various expenses. During the hearing, it was informed that the assessee had applied under the Vivad Se Vishwas Scheme.

What were the issues?

Whether the appeal should be dismissed as infructuous due to the assessee opting for the Vivad Se Vishwas Scheme.

Chakradhar Chemicals Pvt. Ltd… vs ACIT | ITAT Delhi 2021

(A) This appeal by Assessee is filed against the order of Learned Commissioner of Income Tax (Appeals)- Muzaffarnagar, [“Ld. CIT(A)”, for short], dated 07.12.2017 for Assessment Year 2013-14. Grounds taken in this appeal of Assessee are as under:

“1. The Ld. CIT(A) has erred in confirming the order of the assessing officer by disallowing the expenses on account of Legal and Professional Expenses amounting to Rs. 7,45,853/-. 2.The Ld. CIT(A) has erred in confirming the order of the AO by disallowing the expenses on account of Social Welfare Expenses amounting to Rs. 10702.

ITA No.-1299/Del/2018. Chakradhar Chemicals Pvt Ltd. 3.The Ld. CIT(A) has erred in confirming the order of the AO by disallowing the expenses on account of Repair and Maintenance of Office Equipments amounting to Rs. 50000 out of Rs. 256654.

4.The Ld. CIT(A) has erred in confirming the order of the AO by disallowing the expenses on account of Tender Expenses amounting to Rs. 13483.

5.The Ld. CIT(A) has erred in confirming the order of the AO by disallowing the expenses on account of Repair and Maintenance of Factory Building amounting to Rs. 15000.

The Ld. CIT(A) has erred in confirming the order of the AO by disallowing the expenses on account of Deferred Revenue Expenditure written off amounting to Rs. 1,76,112.

The order of the Ld. CIT is against law and facts of the case.

The appellant craves the right to add, amend or withdraw any grounds of appeal at the time of hearing.”

(B) At the time of hearing, we took notice of letter filed on behalf of the assessee, by Sri Anil Kumar, Advocate (from S.P. Jain & Associates). In this letter it has been intimated from the assessee’s side that the assessee has filed an application under Vivad Se Vishwas Scheme (“VSVS”, for short) and form 3 is awaited. 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, we are of the opinion that this appeal has become infructuous on account of aforesaid VSVS, and this appeal may be treated as withdrawn on account of the aforesaid VSVS. Accordingly, this appeal having become infructuous, is treated as withdrawn and is hereby dismissed.

(B.1) Before we part, we hereby clarify, by way of abundant caution, that if for some reason the disputes under this appeal before us are not settled under the ITA No.-1299/Del/2018. Chakradhar Chemicals Pvt Ltd. aforesaid VSVS, then the assessee will be at liberty to approach ITAT for restoration of this appeal, in accordance with law.

This order was already pronounced on 07th January, 2021 in Open Court, in the absence of any representative from assessee’s side, but in the presence of Ld. Sr. DR; after conclusion of the hearing.

CHAKRADHAR CHEMICALS PVT. LTD.,MUZAFFARNAGAR vs. ACIT, CIRCLE- 1, MUZAFFARNAGAR

What did the Tribunal hold?

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