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Facts
The assessee filed an appeal against a penalty order under Section 271(1)(c) of the Income Tax Act, 1961, for AY 2013-14, which was imposed after the assessee had voluntarily disclosed additional income under Section 148. Subsequently, the assessee informed the tribunal about having opted for the Direct Tax Vivad se Vishwas Scheme, 2024.
Held
The tribunal, noting the assessee's election to avail the Vivad se Vishwas Scheme, granted the request for withdrawal of the appeal. In accordance with the scheme's provisions, the appeal was dismissed as withdrawn, with liberty granted to the assessee to file a Miscellaneous Application for restoration if future facts warrant it.
Key Issues
Whether a penalty under Section 271(1)(c) was leviable for voluntary disclosure of additional income under Section 148, and the permissibility of withdrawing the appeal due to the assessee's opting for the Vivad se Vishwas Scheme.
Sections Cited
250, 271(1)(c), 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH KOLKATA
Before: SHRI PRADIP KUMAR CHOUBEY & SHRI RAKESH MISHRA
IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA BEFORE SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER Assessment Year: 2013-14 Raj Kumar Agarwal HUF Asst. CIT, Circle 37, Kolkata, 15, Ganagdhar Babu 3, Govt. Place, Lane, Kolkata – 700001, Vs Eden House, Bow Bazar, West Bengal Kolkata – 700012, West Bengal (Appellant) (Respondent) PAN: AAHHR3501E Present for: Appellant by : Shri S. S. Gupta, FCA Respondent by : Shri Sailen Samadder, Addl. CIT, Sr. D.R. Date of Hearing : 24.12.2024 Date of Pronouncement : 01.01.2025 O R D E R PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, New Delhi (hereinafter referred to as “the Ld. CIT (A)”) passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2013-14 dated 09.05.2024, which has been passed against the penalty order u/s 271(1)(c) of the Act, dated 12.08.2022. 2. The assessee has raised the following Grounds of appeal:
That the Ld. Asst. CIT erred in law as well as in facts in passing the order appealed against in as much as in view of the facts and circumstances of the case, no such order was at all liable to be passed and the Ld. CIT(A) erred in confirming the same. Raj Kumar Agarwal HUF; A.Y. 2013-14 2. That the Ld. Asst. CIT erred in law as well as in facts in levying a penalty u/s 271(1)(c) of the Income Tax Act, 1961, for a sum of Rs. 14,48,660/- and the Ld. CIT(A) erred in confirming the same in as much as in view of the facts and circumstances of the case no such penalty was at all liable to be levied. 3. That no penalty u/s 271(1)(c) was liable to be levied in as much as the appellant assessee had offered an explanation which was material to Computation of Total Income and had also substantiated and proved that the explanation is bonafide and all facts relating to the same and material to the Computation of Total Income were disclosed by the appellant assessee. 4. That the additional income offered in the Return of Income filed u/s 148 was disclosed voluntarily as the said disclosure having been made even before the reasons were furnished to the assessee and in such circumstances, no penalty u/s 271(1)(c) is liable to be levied. 5. That the appellant craves leave to add, alter, change and/or modify any of the grounds of appeal
at or before hearing of the appeal and claim further relief or reliefs which is necessary for the ends of justice.
3. At the outset, it was informed by the Ld. AR that the assessee has availed the Vivad se Vishwas, 2024 scheme. Since the assessee has opted for the Vivad Se Vishwas Scheme, hence the present appeal was requested to be withdrawn. The Ld. DR did not object to the withdrawal of the appeal.
4. As per S. No. 10 of the Guidance Note 1/2024 on provisions of the Direct Tax Vivad se Vishwas Scheme, 2024 dated 15th October, 2024, it is mentioned that as per section 91 (2) of the Scheme, after filing of declaration, appeals before ITAT/CIT(A)/ JCIT(A) are deemed to be withdrawn from the date of issue of certificate by the Designated Authority. Further as per section 91(3) of the Scheme, the taxpayer is required to withdraw appeals and furnish proof thereof along with intimation of payment u/s 92(2) of the Scheme. Since the assessee has requested for withdrawal of the appeal, he is permitted to withdraw the same and the appeal is dismissed as withdrawn. However, if the subsequent facts warrant that the appeal Raj Kumar Agarwal HUF; A.Y. 2013-14 should be heard on merits, the assessee shall be at liberty to file a Miscellaneous Application for restoration of the appeal.