DY. COMMISSIONER OF INCOME TAX (TDS), LUCKNOW vs. M/S U.P POWER CORP. LTD., LUCKNOW

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ITA 622/LKW/2019Status: DisposedITAT Lucknow08 April 2025AY 2013-14Bench: SHRI KUL BHARAT (Vice President), SHRI ANADEE NATH MISSHRA (Accountant Member)1 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 noted that the assessee had settled the tax dispute under the Vivad se Vishwas Scheme. Therefore, the appeal was dismissed as it no longer survived. Liberty was granted to the Revenue to seek recall if the settlement was not finalized.

What were the facts?

The Revenue appealed an order of the CIT(A) concerning assessment year 2013-14, where an addition of Rs.17,37,17,756/- made under Section 14A was deleted. The assessee subsequently opted for the Direct Tax Vivad Se Vishwas Scheme, 2024, settling the tax dispute.

What were the issues?

Whether the appeal survives for adjudication when the tax dispute has been settled by the assessee under the Direct Tax Vivad Se Vishwas Scheme, 2024.

Which sections of the Income-tax Act were involved?

Section 14A,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRAShri Nitin Nijhawan, Chief Fin.

For Appellant: Shri Nitin Nijhawan, Chief Fin
For Respondent: Smt Namita S. Pandey, CIT(DR)

PER KUL BHARAT, VICE PRESIDENT.:

1.

This appeal, by the Revenue, is directed against the order of the Learned Commissioner of Income-tax (Appeals)-2, Lucknow dated 07.08.2019 pertaining to the assessment year 2013-14. The Revenue has raised the following grounds of appeal: -

1. That the Ld. CIT(A)-2, Lucknow had erred in law and facts in deleting the addition of Rs.17,37,17,756/- u/s 14A of Income Tax Act, 1961 without appreciating the fact that section 14A does not use the word “income of the year” but ‘income under the act’ and CBDT circular no. 05/2014 dated 11.02.2014 makes it clear that the expenses, which are relatable to earning of exempt income have to be considered for disallowance irrespective of the fact whether such income has been earned during the financial – year or not.

2. The appellant craves leave to add or amend any one or more of the grounds of appeal

, as stated above, as and when need to doing so arise with the prior permission of the Hon'ble Court.”

2. At the outset, the Ld. Counsel for the assessee submitted that the dispute has been settled under the Direct Tax Vivad se Page 2 of 3 Vishwas Scheme, 2024 and prayed for withdrawal of the appeal. And a letter dated 18.01.2025 along with Form no.1 & 2 are placed on record. The relevant contents of the letter dated 18.01.2025 is reproduced as under: -

“1. This subject appeal in is fixed for hearing before your honour.

2.

In this regard, it is respectfully submitted that the assessee has opted for Direct Tax Vivad Se Vishwas Scheme, 2024 and have filed the declaration and undertaking in Form No. 1 for A.Y. 2013-14 and have also obtained Form 2 under Direct Tax Vivad Se Vishwas Scheme 2024 from the Principal Commissioner of Income Tax-1, Lucknow vide DIN/Ackowledgement No.809470091080125 dated 08.01.2025 (Copy of Form 2 is enclosed herewith for your kind perusal).

3. Since the assessee has opted for the Direct Tax Vivad Se Vishwas Scheme, 2024, it is humbly prayed that the subject appeal may be treated as withdrawn.”

3.

The Learned Departmental Representative has no objection to the aforesaid request of the assessee.

4.

In the light of the aforesaid facts discussed, since the tax disputes has been settled by the assessee’s for A.Y. 2013-14, the aforesaid captioned departmental appeal will not survive and therefore it is to be treated as dismissed. However, with abundant precaution liberty is granted to Revenue for seeking recalling of this order and restoration of the present appeal at its original number if the disputed tax is not deposited in the Government account and tax dispute is not settled to the satisfaction of AO.

5.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 08/04/2025.

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