Loading judgment…
Facts
The assessee had opted for the VSVS scheme, and its application reached finality. The penalty order in question was related to the quantum assessment under this scheme. The assessee contended that under Section 93 of the VSVS regulation, it is granted immunity from penalties related to the tax areas covered by the VSVS application.
Held
The Tribunal held that the assessee gets immunity from any penalty having any relation with the tax areas forming part of the VSVS application, as per Section 93 of the VSVS regulation. Consequently, the order of the lower authorities was set aside.
Key Issues
Whether the assessee is entitled to immunity from penalty under Section 93 of the VSVS regulation for tax areas covered by the VSVS application.
Sections Cited
93, 271(1)(c), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T VARKEY & SHRI AMITABH SHUKLA
Years: 2013-14 Dindigual Nadar Uravinmurai Income Tax Officer(Exemptions), SMB Manickam Nagar Packithammal Madurai. Matric School, 35 GTN Salai Dindigul, Tamil Nadu-624 005. [PAN: AAATD8570D] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri R.Kumar, Advocate. प्रत्यर्थी की ओर से /Revenue by : Ms.Anitha, Addl.CIT सुिवाई की तारीख/Date of Hearing : 17.01.2025 घोर्णा की तारीख /Date of Pronouncement : 12.02.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M :
This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA/NFAC/S/250/2023-24/1060920975(1) dated 14.02.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2013-14. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 14.02.2024 passed by NFAC, Delhi.
Page - 1 - of 3 2.0 At the outset the Ld. Counsel for the assessee informed that it had opted for VSVS scheme qua the quantum assessment in respect of which the present penalty order rests. It was submitted that its application under VSVS has reached finality and department has issued form 4 also. Accordingly the Ld. Counsel urged that under section 93 of VSVS regulation it gets immunity from any penalty having any relation with the tax areas forming part of VSVS application. It was contended that the assessee gets immunity from present penalty order u/s 271(1)(c ) levying a penalty of Rs.33,23,811/- which has been confirmed by the Ld. CIT(A) vide his impugned order dated 14.02.2024. The Ld. DR fairly conceded the facts of the case.
3.0 We have heard rival submissions in the light of material available on records. Accordingly, considering that under section 93 of VSVS regulation assessee gets immunity from any penalty having any relation with the tax areas forming part of VSVS application, the order of lower authorities is set aside and the grounds of appeal raised by the assessee are allowed.