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Facts
The revenue filed an appeal against the order of the Commissioner of Income-tax (Appeals) deleting an addition of Rs. 44,44,174/-. The appeal was delayed by 380 days but was condoned. The assessee submitted that the tax dispute was settled under the Direct Tax Vivad se Vishwas Scheme.
Held
The Tribunal condoned the delay in filing the appeal. Since the tax dispute was settled by the assessee under the Vivad se Vishwas Scheme, the appeal filed by the revenue was no longer sustainable.
Key Issues
Whether the revenue's appeal can be sustained when the tax dispute has been settled under the Vivad se Vishwas Scheme. Condonation of delay in filing the appeal.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW
PER KUL BHARAT, VICE PRESIDENT.:
This appeal, by the revenue, is directed against the order of the Learned Commissioner of Income-tax (Appeals) - I, Kanpur dated 19.11.2018 pertaining to the assessment year 2015-16. The revenue has raised the following grounds of appeal: -
1. The Ld. Commissioner of Income Tax (Appeals)-I, Kanpur has erred in Law and on facts in deleting the addition of Rs. 44,.44,174/- without going into the merits of the case and ignoring the findings recorded by the assessing officer in assessment order that the sale of shares in this case is not a natural phenomenon but an arrangement of dubious design of providing accommodation entry of Long Term Capital Gain to introduce unaccounted own money as exempt income in the form of LTCG on sale of shares and the assessee being fully aware of it is also a part of this manipulation.
The Ld. Commissioner of Income Tax (Appeals)-l, Kanpur has erred in law and on facts without appreciating the facts that the issue involved pertains to organized scam/tax evasion activity and unique modus operandi of this embezzlement for which CBDT’s Circular No. 23 of 2019 dated 06.09.2019 and subsequent O.M. dated 16.09.2019 mandate that the appeals may be filed on merits in case of the assessee claiming bogus LTCG/STCG through Penny Stocks.
3. That the order of the Ld. Commissioner of Income tax (Appeals) is erroneous, unjust and bad in law be vacated and the order dated Page 2 of 3 29.12.2016 passed u/s 143(3) of I.T. Act of the Assessing Officer be resorted.
4. That the appellant craves leave to modify any of the grounds of appeal
mentioned above and/or add any fresh grounds as and when it is required to do so.”
2. It is reported by the Registry that the appeal is barred by limitation for 380 day’s. The assessee has filed an application seeking condonation of delay in filing of this appeal. The application for condonation of delay is supported by an affidavit of the assessee. The Ld. Sr. Departmental Representative for Revenue did not express any objection to the delay being condoned. Therefore, we condone the delay in filing of this appeal and admit the appeal for decision of merits.
The Learned Authorized Representative of the assessee, at the outset, submitted that the tax dispute has been settled and Form no. 5 has been issued under the Direct Tax Vivad se Vishwas Scheme, 2024 and a copy of certificate in Form-5 is placed on record.
The Learned Departmental Representative has no objection for withdrawal of the appeal.
In the light of the aforesaid facts discussed, since the tax disputes has been settled by the assessee’s for A.Y. 2015-16, the aforesaid captioned departmental appeal will not survive and therefore same is hereby as dismissed.
In the result, the appeal of the revenue is dismissed. Order pronounced in the open Court on 28/03/2025.