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Facts
The assessee's appeal was against a penalty levied under Section 271(1)(C) for AY 2017-18. The assessee had opted for the Direct Tax Vivad Se Vishwas Scheme (DTVSV), 2024, leading to the withdrawal of the quantum appeal.
Held
The Tribunal noted that the quantum appeal was settled under the DTVSV Scheme, and immunity was granted from penalty. Therefore, the penalty appeal was no longer sustainable.
Key Issues
Whether a penalty appeal survives when the quantum appeal has been settled under the Direct Tax Vivad Se Vishwas Scheme, 2024.
Sections Cited
271(1)(C)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI
The captioned appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals) [CIT(A)] Chennai-16 dated 21.06.2024 for Assessment Year 2017- 18.
The above appeal is against the levy of penalty u/s 271(1)(C) of the Act for AY 2017-18. The ld. counsel for the assessee filed a letter dated 07.05.2025 and submitted that the appeal in quantum proceeding before the Hon’ble High Court has been withdrawn vide order dated 09.01.2025 as the assessee opted for the benefit under the Direct Tax Vivad Se Vishwas Scheme (DTVSV), 2024. Before us also, the ld. counsel for the Assessee informed that Form No.4 DTVSV has been issued on 06.05.2025. Hence, he prayed that the present penalty appeal does not survive as the quantum appeal has
Accordingly, noting the fact that the assessee in quantum appeal is already settled dispute under Direct Tax Vivad Se Vishwas Scheme (DTVSV), 2024 and immunity is granted from the imposition of penalty under the Act, this penalty does not survive.
In the result, the appeal filed by the assessee in Act by the CBDT Circular No.12 of 2024 dated 15.10.2024.
Order pronounced in the open court on 29th May, 2025