What did the Tribunal hold?

The Tribunal held that since the substantive assessments were settled, the protective assessments would automatically stand deleted. The appeals were disposed of as infructuous.

The assessee filed appeals against protective assessments. The substantive assessments, which were the basis for the protective ones, were settled under the Vivaad Se Viswaas Scheme.

What were the issues?

Whether protective assessments can survive when the substantive assessments are settled under a dispute resolution scheme. The impact of settlement under the Vivaad Se Viswaas Scheme on pending appeals.

Shri M R Narasimha Murthy (HUF) vs DCIT | ITAT Bangalore 2021

Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE

Before: SHRI CHANDRA POOJARI & SMT. BEENA PILLAI

For Appellant: Shri Ravishankar S.V, Advocate

For Respondent: Shri Neera Malhotra, CIT (DR)

PER BEENA PILLAI, JUDICIAL MEMBER Present cross appeals have been filed by assessee as well as Revenue against order dated 21/02/2018 by the Ld.CIT(A)-11, Bengaluru for assessment year 2012-13. 2. The Ld.AR submitted that the above appeals are in respect of protective assessments made substantially in the hands of M/s Dhruvathi Hotels & Developments Pvt. Ltd., for the AY 2009-10 and AY 2010-11 and was pending before this Tribunal in and ITA No. 1450/Bang/2018 respectively. 2.1 The assessee in M/s Dhruvathi Hotels & Developments Pvt. Ltd, for both the years preferred to settle the dispute under the Vivaad Se Viswaas Scheme and the appeals in ITA No. 1449/Bang/2018 and ITA No. 1450/Bang/2018, were disposed off vide order dt:08/12/ 2020. A copy of the order has been filed before us. 2.2 The assessee HUF has also filed the assessment orders in the case of M/s Dhruvathi Hotels & Developments Pvt Ltd, for AY 2009-10 and 2010-11, where following substantive additions were made.

Page 3 of 5 & 1448/Bang/2018

AY Name of the assessee Substantive Protective assessment assessment

Dhruvathi Hotels & Developments Pvt. 2009-10 5,00,00,000 Ltd ______ 2,00,00,000 Dhruvathi Hotels & Developments Pvt. 2010-11 Ltd M R Narasimha Murthy (HUF) - 7,00,00,000 (para 14.7 of assessment order) 2012-13 2.3 It is submitted that the protective assessment in present case will not survive when the sustentative assessments have been settled through the VSVS and it is prayed that the above appeals be disposed as being infructuous.

2.4 It is further prayed that the assessee and the department be given liberty to recall the respective appeals, if the VSVS application in the case of M/s Dhruvathi Hotels & Developments Pvt. Ltd., is not accepted by the Income Tax Department.

The Ld.AR did not object to the submissions made by the Ld.AR.

We heard the parties and perused the record. Since the substantive assessment has been settled under VSVS Act, we are of the view that no purpose would be served in keeping these appeals pending. Addition made under protection basis will stand deleted automatically in the hands of assessee. The revenue’s appeal stands withdrawn as the dispute stands settled.

Page 4 of 5 & 1448/Bang/2018 4.1 However, we find merit in the submission made by Ld.DR since these appeals filed by the revenue are dismissed by us at the instance of the assessee. We grant liberty to both sides to file necessary applications for recall of this order in accordance with law within the statutory time period, if something goes wrong in respect of applications filed by the assessee under VSVS Act. In the result, present cross appeals are dismissed with liberty. Order pronounced in the open court on 24th August, 2021 Sd/- Sd/- (CHANDRA POOJARI) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 24th Aug, 2021. /Vms/ Copy to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT, Bangalore 6. Guard file By order

SHRI M R NARASIMHA MURTHY (HUF),BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(2), BANGALORE

What did the Tribunal hold?

What were the facts?

What were the issues?

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