GYANCHAND NEMICHAND JAIN,WEST MAREDPALLY, SECUNDERABAD vs. ACIT., CIRCLE-6(1), HYDERABAD

ITA 856/HYD/2024Status: DisposedITAT Hyderabad18 March 2025AY 2018-194 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the assessee had filed a letter dated 03.03.2025 requesting permission to withdraw the appeals, citing settlement under the Direct Taxes Vivad Se Vishwas Scheme, 2024. The assessee's counsel further submitted at the Bar that once the additions made by the Assessing Officer were settled under the Scheme, any penalty levied on such additions would not survive. Consequently, the appeal against the penalty also did not survive and should be dismissed as withdrawn. The Learned DR had no objection to this submission. The Tribunal, considering the assessee's letter and the counsel's statement, dismissed both appeals (ITA.Nos.856 & 956/Hyd/2024) as withdrawn. The Tribunal also clarified that if the settlement under the Vivad se Vishwas Scheme, 2024, is not accepted by the Department for any reason, the assessee would be at liberty to file a Miscellaneous Application to reinstate the appeals within the prescribed time limit. The operative direction was to dismiss the appeals as withdrawn.

What were the facts?

The assessee, Gyanchand Nemichand Jain, filed two appeals (ITA.No.856 & 956/Hyd/2024) before the Income Tax Appellate Tribunal (ITAT), Hyderabad 'B' Bench, against orders dated 12.07.2024 and 24.07.2024 passed by the CIT(A)-NFAC, Delhi, for the assessment year 2018-2019. The appeals challenged additions made by the Assessing Officer and a penalty levied on those additions. During the pendency of the appeals, the assessee opted to settle the dispute under the Direct Taxes Vivad Se Vishwas Scheme, 2024. The assessee submitted Form No.1 and received Form No.2 from the Department, which determined a refund amount of Rs.1,19,683/- for ITA.No.856/Hyd./2024. Consequently, the assessee sought to withdraw both appeals.

What were the issues?

1. Whether the appeal relating to additions made by the Assessing Officer (ITA.No.856/Hyd./2024) can be withdrawn by the assessee in light of settlement under the Direct Taxes Vivad Se Vishwas Scheme, 2024? (Question of law and fact, concerning the Vivad Se Vishwas Scheme, 2024). 2. Whether the appeal relating to the penalty levied on the additions (ITA.No.956/Hyd./2024) can be withdrawn by the assessee, given that the underlying additions have been settled under the Direct Taxes Vivad Se Vishwas Scheme, 2024? (Question of law and fact, concerning the Vivad Se Vishwas Scheme, 2024 and its impact on penalty). Assessee's Contentions: The assessee argued that upon settling the disputed additions under the Direct Taxes Vivad Se Vishwas Scheme, 2024, any penalty levied on those additions does not survive as per the Scheme. Therefore, both appeals, one challenging the additions and the other challenging the penalty, should be permitted to be withdrawn. The assessee relied on the settlement under the Vivad Se Vishwas Scheme, 2024, and the Form No.2 received from the Department. Revenue's Contentions: The Learned DR (Dr. Sachin Kumar) had no objection to the assessee's request for withdrawal of the appeals.

Which sections of the Income-tax Act were involved?

Direct Taxes Vivad Se Vishwas Scheme, 2024

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD “B” BENCH : HYDERABAD

Before: SHRI VIJAY PAL RAO & SHRI MANJUNATHA G

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “B” BENCH : HYDERABAD BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER ITA.No.856 & 956/Hyd/2024 Assessment Years 2018-2019 Gyanchand Nemichand Jain, West Maredpally, The ACIT, SECUNDERABAD. Circle-6(1), vs. PIN 500 026. Hyderabad. PAN AGAPJ6957H (Appellant) (Respondent) CA A. Srinivas appeared for For Assessee : CA K A Sai Prasad And Assessee Party-in-Person For Revenue : Dr. Sachin Kumar, Sr. AR Date of Hearing : 18.03.2025 Date of Pronouncement : 18.03.2025 ORDER PER MANJUNATHA G, A.M. :

The above twin appeals are filed by the assessee viz., Gyanchand Nemichand Jain against the separate orders dated 12.07.2024 and 24.07.2024 of the learned CIT(A)-National Faceless Appeal Centre [in short “NFAC”], Delhi, relating to the assessment year 2018-2019.

2 ITA.Nos.856 & 956/Hyd./2024 2. At the very outset, the Learned Counsel for the Assessee vide letter dated 03.03.2025 submitted that the assessee had opted to settle the dispute under Direct Taxes Vivad Se Vishwas Scheme, 2024 and filed Form No.1 and received Form No.2 dated 25.02.2025 from the Department by determining refund amount of Rs.1,19,683/- in ITA.No.856/Hyd./2024. He further submitted that once the disputed issue is settled under Direct Taxes Vivad Se Vishwas Scheme, 2024, then, penalty levied on the said disputed addition does not survive as per the “Scheme” and accordingly, the appeal ITA.No.956/Hyd./2024 filed by the assessee against the penalty levied by the Assessing Officer also does not survive. He, therefore, submitted that, assessee may be permitted to withdraw the appeals, to which, the Learned DR has no objection.

We have heard both the parties in light of letter filed by the assessee dated 03.03.2025 requesting the Bench to allow the assessee to withdraw the appeals. Although, the assessee has filed letter for withdrawing the appeal ITA.No.856/Hyd./2024 filed by the assessee in light of 3 ITA.Nos.856 & 956/Hyd./2024 relevant Form No.2 issued by the Competent Authority, but, during the course of hearing, the Learned Counsel for the Assessee made a statement at Bar that once the issue of additions made by the Assessing Officer has been settled under Direct Taxes Vivad Se Vishwas Scheme, 2024, then, any penalty levied on such additions does not survive and consequently, the appeal ITA.No.956/Hyd./2024 filed by the assessee against the penalty levied by the Assessing Officer also needs to be dismissed as withdrawn. Therefore, considering the letter dated 03.03.2025 filed by the assessee and also the statement of the assessee’s counsel during the course of hearing, we dismiss the appeals ITA.Nos.856 and 956/Hyd/2024 filed by the assessee as “withdrawn”.

Further, we make it clear that, the assessee can approach the Tribunal in case the settlement is not accepted by the Department under Vivad se Vishwas Scheme 2024, for whatsoever may be the reason, then, the assessee shall be at liberty to file Miscellaneous Application before the Tribunal within the time limit prescribed under the Act to reinstate assessee's appeal. Ordered accordingly.

4 ITA.Nos.856 & 956/Hyd./2024 5. In the result, both the appeals of the assessee are dismissed as “withdrawn”. A copy of this common order be placed in the respective case files.

Order pronounced in the open Court on 18.03.2025

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