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Facts
The assessee filed an appeal against the order of the CIT(A) pertaining to the assessment year 2017-18. The assessee had raised multiple grounds challenging the reopening of assessment. However, at the outset of the hearing, the assessee's counsel submitted that the dispute has been settled under the Direct Tax Vivad se Vishwas Scheme.
Held
The Tribunal noted that the assessee had settled the dispute under the Direct Tax Vivad se Vishwas Scheme, and the Departmental Representative had no objection to the withdrawal of the appeal. The Tribunal allowed the assessee to withdraw the appeal.
Key Issues
Whether the appeal can be dismissed as withdrawn due to settlement under the Direct Tax Vivad se Vishwas Scheme.
Sections Cited
147, 148, 151A, 148A, 151, 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW
PER KUL BHARAT, VICE PRESIDENT.:
This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 24.07.2024, pertaining to the assessment year 2017-18. The assessee has raised the following grounds of appeal: -
1. That the Id.AO has erred in reopening assessment u/s 147 of the Income Tax Act, 1961 without jurisdiction in absence of valid issuance of notice u/s 148 of the IT Act, 1961 mandatorily required for reopening of assessment u/s 151A of the Income Tax Act, 1961.
2. That the Id.AO has erred in reopening the assessment without jurisdiction as the order passed u/s 148A(d) of the Act required to passed before reopening u/s 148 is without approval of specified authority as required u/s 151 of the IT Act, 1961 making the reopening and reassessment void ab initio, invalid and unlawful being without jurisdiction.
3. That the Id.AO has erred in issuing notice u/s 148 of the IT Act, 1961 without jurisdiction and requisite approval of specified authority as required u/s 151 of the IT Act, 1961 making the reopening and reassessment void ab initio, invalid and unlawful being without jurisdiction.
Page 2 of 3 4. That the Id.AO has erred in issuing notice u/s 148 of the IT Act, 1961 without bearing the Document identification Number (DIN) on the notice making the notice invalid and unlawful and consequently resulting in proceeding being void ab initio and without jurisdiction.
That the Id.AO has erred in reopening the assessment u/s 148 of the IT Act, 1961 on the basis of reason recorded based on the borrowed information from DDIT(inv.), Unit-1, Kanpur without application of mind and credible or corroborative evidence to corroborate the live link or nexus of the appellant.
That the Id.CIT(A) as well as Id.AO has erred in making addition of unsecured loan of Rs.62,00,000/- u/s 68 of the IT Act, 1961.
That the Id.CIT(A) as well as Id.AO has erred in making addition of unsecured loan u/s 68 of the Act even though the appellant had discharged the onus to explain the source of unsecured loan before the AO under the law as was in existence for the instant year and was not required to explain the source of source as the amendment has been brought prospectively by Finance Act, 2021.
That the assessment proceeding and its orders has been passed by the Id.AO and confirmed by the Id.CIT(A) is arbitrary and prejudice resulting the proceeding and its Order bad in facts as well as law deserve to be quashed.
The appellant craves leave to introduce, modify or withdraw any ground of appeal
with your honours kind permission.”
2. At the outset, the Ld. Counsel for the assessee submitted that the dispute has been settled under the Direct Tax Vivad se Vishwas Scheme, 2024 and prayed for withdrawal of the appeal. And a letter dated 18.02.2025 along with Form no. 2 and challan of tax is placed on record. The relevant contents of the letter dated 18.02.2025 is reproduced as under: - “That the appellant very humbly submit before your honour that the appellant has filed Form 1 under the Vivaad Se Vishwas Scheme to settle the litigation against which the Form 2 has been issued by the designated authority, moreover the tax has also been paid by the appellant, copy of Form 2 and challan of tax paid is enclosed. In view of above, the appellant humbly requested your honour to kindly pass the appropriate order as your honour deem fit in the interest of justice.”
The Learned Departmental Representative has no objection for withdrawal of the appeal.
In view of the facts discussed above, we permit the assessee to withdraw this appeal. Accordingly, the appeal is dismissed as withdrawn. However, a liberty is given to the assessee for approaching the Tribunal for restoration of this appeal in the event of failure of settlement of tax disputes.