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

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ITA 956/HYD/2024Status: DisposedITAT Hyderabad18 March 2025AY 2018-19Bench: SHRI VIJAY PAL RAO (Vice President), SHRI MANJUNATHA G (Accountant Member)4 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The Income Tax Appellate Tribunal dismissed both appeals as withdrawn, acknowledging that the underlying dispute and related penalty had been settled under the Vivad Se Vishwas Scheme. The Tribunal also granted liberty to the assessee to file a Miscellaneous Application for reinstatement if the settlement under the scheme is not accepted by the department.

What were the facts?

The assessee filed twin appeals for Assessment Year 2018-2019. During the proceedings, the assessee opted to settle the dispute, including penalty, under the Direct Taxes Vivad Se Vishwas Scheme, 2024, and had completed the necessary formalities, including receiving Form No.2 from the department.

What were the issues?

Can appeals before the ITAT be withdrawn when the core dispute, including related penalties, has been settled by the assessee under the Direct Taxes Vivad Se Vishwas Scheme, 2024?

Which sections of the Income-tax Act were involved?

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

Hearing: 18.03.2025Pronounced: 18.03.2025

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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