RANCHHODBHAI VITTHALBHAI PATEL,GANDHINAGAR vs. THE ADDL.CIT,TDS, AHMEDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER (Assessment Year: 2015-16) Snehalben Kamalbhai Patel Vs. ADDL./JCIT, Plot No. 1355/2, TDS, Sector – 3/B, Ahmedabad Gandhinagar-382003 Ranchhodbhai Vitthalbhai Patel ADDL./JCIT, Plot No. 352, TDS, Sector-1/C, Sector-1, Ahmedabad Gandhinagar-382007 [PAN No.BCKPP4682G/ACGPP9103R] (Appellant) .. (Respondent) Appellant by : Shri M.K. Patel, Advocate Respondent by: Shri M. Anand Kumar, Sr. D.R. 21.12.2022 Date of Hearing 23.12.2022 Date of Pronouncement O R D E R

The appeals filed by the different assessee are against the order passed by the Ld. CIT(Appeals), National Faceless Appeal Centre (in short “NFAC”), Delhi on 12.05.2022 & 24.03.2022 for A.Y. 2015-16.

(A.Y. 2015-16):- The grounds of appeal raised by the assessee are as under: 2. “(1) That on facts, and in law, the learned NFAC has grievously erred in dismissing the appeal as infructuous against the levy of penalty of Rs.33,000/- u/s 271C of the Act. (2) That on facts, and in law, the learned NFAC ought to have deleted the penalty as the appellant is entitled to immunity from penalty as the appellant has opted for VSVS in respect of order u/s 201(1) of the Act. The appellant craves leave to add, alter, amend any ground of appeal.” (3) &263/Ahd/2022 Snehalben Kamalbhai Patel & Ranchhodbhai Vitthalbhai Patel vs. ADDL.CIT/JCIT Asst.Year–2015-16 - 2 -

3. The Assessing Officer observed that the assessee was liable to tax and deposit TDS as per the provisions of Section 194IA of the Income Tax Act from the consideration for the purchase of an immovable property of Rs. 1,65,00,000/- during the F.Y. 2014-15. The Assessing Officer further observed that the assessee failed to comply with the provisions relating to TDS and therefore, in view of the same order under Section 201(1)/201(1A) of the Income Tax Act was passed on 29.11.2019 and the assessee was considered to be default for non-deduction of TDS under Section 194IA of the Act. The Assessing Officer invoked provision of Section 271C of the Income Tax Act as the assessee was liable to pay the penalty for such default. After issuing notice dated 24.01.2020 the Assessing Officer imposed penalty of Rs. 33,000/- under Section 271C vide order dated 23.06.2021. In the meanwhile the assessee opted for direct tax Vivas se Vishwas Scheme (VSVS) and settled the dispute under Section 201(1) as the assessee’s appeal before the CIT(A) was pending on the quantum proceedings. Form No. 5 related to order for full and final settlement of tax arrears was issued by the Department on 09.04.2021.

(A.Y. 2015-16):- 8. The grounds of appeal filed by the assessee are as under: “(1) That on facts, and in law, the learned NFAC has grievously erred in dismissing the appeal as infructuous against the levy of penalty of Rs.33,000/- u/s 271C of the Act. (2) That on facts, and in law, the learned NFAC ought to have deleted the penalty as the appellant is entitled to immunity from penalty as the appellant has opted of VSVS in respect of order u/s 201(1) of the Act. (3) The appellant craves leave to add, alter, amend any ground of appeal.”

&263/Ahd/2022 Snehalben Kamalbhai Patel & Ranchhodbhai Vitthalbhai Patel vs. ADDL.CIT/JCIT Asst.Year–2015-16 - 4 -