DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-4(1)(1), AHMEDABAD, AHMEDABAD vs. YANFENG INDIA AUTOMOTIVE INTERIOR SYSTEMS PVT LTD, AHMEDABAD

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ITA 917/AHD/2023Status: DisposedITAT Ahmedabad24 March 2025AY 2017-18Bench: SHRI SANJAY GARG, JUDICIAL MEMBER\nAND\nSHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER\nआयकर अपील सं/ITA No.917/Ahd/2023\nनिर्धारण वर्ष / Assessment Year : 2017-18\nDy.Commissioner of\nIncome Tax,\nCircle-4(1)(1)\nAhmedabad\nYanfeng India Automotive\nबनाम /\nv/s.\nInterior Systems Pvt.Ltd.\nPlot No.AV21, GIDC\nSandnad-II,\nVillage Bol, Sanand\nAhmedabad – 382 110\nस्थायी लेखा सं./PAN: AAACY 5078 P\n(अपीलार्थी/ Appellant)\n(प्रत्यर्थी / Respondent)\nAssessee by :\nShri Parimalsinh B. Parmar,3 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue has become infructuous and academic in nature. This decision was based on the facts placed on record, particularly the declaration filed by the assessee under the DTVSV Scheme, 2024. The Tribunal noted the computation of the amount payable under Form No. 2, which was more than 50% of the disputed tax as reflected in Form No. 36. Furthermore, the Tribunal took into account that a balance amount of Rs. 84,49,235/- has been determined as refundable to the assessee. Consequently, the Tribunal found no reason to proceed with the appeal. The operative direction was to dismiss the appeal.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, against the order of the Commissioner of Income Tax (Appeals) dated September 21, 2023. The appeal pertained to Assessment Year 2017-18 and challenged the deletion of disallowances made by the Assessing Officer. These deletions included Rs. 1,79,79,218/- on account of depreciation on goodwill and Rs. 19,75,701/- on account of advances written off. The Assessing Officer had made these disallowances in an assessment order passed under Section 143(3) of the Income Tax Act, 1961. During the hearing, the assessee sought withdrawal of the appeal, stating they had opted for settlement under the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024.

What were the issues?

1. Whether the appeal filed by the Revenue has become infructuous and academic in nature due to the assessee opting for settlement under the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, as per Section 4 of the DTVSV Act, 2020. Assessee's Contentions: The assessee argued that they have opted for settlement under the DTVSV Scheme, 2024. A copy of Form No. 2 was submitted, indicating the amount payable under the Scheme was determined at Rs. 34,52,999/-. The tax effect involved in the appeal was Rs. 65,54,960/-. Since the amount payable under the Scheme exceeded 50% of the disputed tax liability, and after adjustment, Rs. 84,49,235/- was determined as refundable to the assessee, the appeal should be withdrawn. Revenue's Contentions: The Departmental Representative submitted that they had no objection to the withdrawal of the appeal in view of the assessee having settled the dispute under the DTVSV Scheme, 2024.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 4

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ A BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI MAKARAND V. MAHADEOKAR

For Appellant: Shri Parimalsinh B. Parmar, AR
For Respondent: Shri B.P. Srivastava, Sr.DR
Hearing: 24/03/2025Pronounced: 24/03/2025

ORDER \nPER MAKARAND V. MAHADEOKAR, AM:\nThis appeal has been filed by the Revenue against the order of the\nCommissioner of Income Tax (Appeals), National Faceless Appeal Centre\n(NFAC), Delhi [hereinafter referred to as “CIT(A)"] dated 21.09.2023 for the\n Assessment Year (AY) 2017-18. The Revenue has challenged the deletion of\nthe disallowance of Rs.1,79,79,218/- on account of depreciation on goodwill\nand Rs.19,75,701/- on account of advances written off, as made by the\nAssessing Officer in the assessment order passed under Section 143(3) of the\nIncome Tax Act, 1961.\n2.\nDuring the course of hearing, the Authorized Representative of the\nassessee submitted an application seeking withdrawal of the appeal, stating\nthat the assessee has opted for settlement of the dispute under the Direct Tax\nVivad Se Vishwas (DTVSV) Scheme, 2024. In support of the said\ncontention, a copy of Form No. 2 was placed on record, which shows that the\namount payable under the Scheme has been determined at Rs.34,52,999/-.\n2.

1.

It was further submitted that the tax effect involved in the present\nappeal, as per Form No. 36, is Rs.65,54,960/- and, therefore, the amount\npayable under the Scheme exceeds 50% of the disputed tax liability. It was\nalso pointed out that after adjusting the amount payable under the Scheme,\na sum of Rs.84,49,235/- is determined as refundable to the assessee, as\nreflected in Form No. 2 filed under the DTVSV Scheme.\n3. The Departmental Representative fairly submitted that he has no\nobjection to the withdrawal of the appeal in view of the assessee having\nsettled the dispute under the DTVSV Scheme, 2024.\n4.\nHaving regard to the facts placed on record, particularly the\ndeclaration filed by the assessee under the DTVSV Scheme, 2024, and the\ncomputation of the amount payable under Form No. 2, which is more than\n50% of the disputed tax as reflected in Form No. 36 and further taking note\nof the fact that the balance amount of Rs.84,49,235/- has been determined as\nrefundable to the assessee, we are of the view that the present appeal has\nbecome infructuous and is rendered academic in nature.\n5. Accordingly, the appeal filed by the Revenue is dismissed.\nOrder pronounced in the Open Court on 24th March, 2025 at Ahmedabad.\nSd/-\nSd/-\n(SANJAY GARG )\nJUDICIAL MEMBER\n( MAKARAND V. MAHADEOKAR )\nACCOUNTANT MEMBER\nअहमदाबाद/Ahmedabad, दिनांक/Dated 24/03/2025\nटी. सी. नायर, व.नि. स. / T.C. NAIR, Sr. PS\nआदेश की प्रतिलिपि अग्रेषित/

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