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Facts
A search and seizure operation led to an assessment order with additions to the assessee's income. The assessee also faced a penalty for non-compliance with a notice. The assessee opted for the Vivad Se Vishwas Scheme to settle the penalty appeal, but the CIT(A) erroneously disposed of the assessment appeal under the same scheme.
Held
The Tribunal condoned the delay in filing the appeal. It found that the CIT(A) had incorrectly disposed of the appeal against the assessment order without deciding on merits, due to confusion over the Vivad Se Vishwas Scheme. The matter was restored to the CIT(A) for a fresh hearing and decision.
Key Issues
Whether the CIT(A) erred by disposing of the assessment appeal on the basis of the Vivad Se Vishwas settlement, without deciding on merits, and whether the delay in filing the appeal should be condoned.
Sections Cited
143(3), 272A(2)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL
This appeal preferred by the assessee against the order dated 22.05.2023 of Ld. CIT(A)-3, Noida (hereinafter referred to as the First
P a g e | Vikas Agarwal (AY: 2017-18) Appellate Authority or ‘the ld. FAA’ for short) in DIN No :
ITBA/APL/M/250/2023-24/1053350137(1) arising out of the assessment order dated 28.12.2018 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by DCIT, CC, Meerut, for AY: 2017-18.
None has appeared for the assessee at the time of hearing, however, on going through the record and hearing ld. DR it can be observed that assessee has raised a ground that ld. CIT(A) has dismissed the appeal of the assessee on the basis that assessee has opted for Direct Tax Vivad Se Vishwas Scheme, 2020 but as per the assessee no such settlement was opted. It comes up that a search and seizure operation was carried out on the premises of the appellant comprising of Sh. Vipin Kumar & others on 05.02.2017, by investigation wing, Ghaziabad. The name of the appellant was also in the search warrant and a search was also conducted on his joint family home situated at 52, Darshan Market, Patti Hulsray, Siyana, Bulandshahr. The appellant filed his ITR for the relevant year on 26.03.2018, declaring an income of Rs.8,05,140/-. The assessment for the relevant year was completed vide order dated 28.12.2018, passed u/s 143(3) of the Act, at an assessed
P a g e | Vikas Agarwal (AY: 2017-18) income of Rs.3,32,85,140/-, thereby making additions of Rs. 3,24,80,200/- to the returned income of the appellant on 2 issues.
Against the same the appellant filed an appeal before the Ld. CIT(A)-3, Noida, on 29.01.2019. During the pendency of the said appeal the Ld. Add.
DIT (Inv.), Meerut, vide order dated 26.03.2019, levied a penalty of Rs.39,700/-, upon the appellant u/s 272A(2)(c) of the Act, for non- compliance of notice issued u/s 133(6) to the appellant on 15.02.2018.
Against the same also, the appellant filed an appeal before the Ld. CIT(A)-3, Noida, on 17.04.2019.
Thereafter, upon the launch of VSV Scheme, 2020, the appellant vide form 1 dated 25.06.2020, opted to settle his appeal against the levy of penalty u/s 272A(2)(c) of the Act, under the same. The form 1 filed by the appellant attained finality upon issuance of form 5 by the office of Ld. PCIT (Central), Kanpur, on 22.03.2021. On appellants application letter the withdrawal of the penalty appeal u/s 272A(2)(c) of the Act, the same was disposed by the Ld.
CIT(A)-3, Noida vide order dated 25.05.2021.
P a g e | Vikas Agarwal (AY: 2017-18) 5. Pursuant to that the Ld. CIT(A)-3, Noida, under some confusion, vide order dated 22.05.2023, also disposed the appeal of the appellant filed against the assessment order dated 28.12.2018, considering the form 1 filed by the appellant under VSVS, 2020, for settling penalty u/s 272A(2)(c) of the Act, to have been filed to settle the said appeal, without deciding the same on merits.
The appellant could not take note of the said appeal order, as he was under the impression that all the appeals relating his search assessments will be disposed collectively. The appellant came to know of this order when his appeals against the search assessments for the remaining years were decided by the Ld. CIT(A)-3, Noida, vides orders dated 02.09.2025. Upon enquiry he came to know of the order dated 22.05.2023. Hence, the present appeal is filed before your honor with a delay of 811 days.
In the light of aforesaid circumstances the delay in filing of the appeal before this Tribunal is condoned and the issue on merits as well as law are restored to the files of ld. CIT(A) to give fresh opportunity of hearing to the assessee and pass order afresh.
P a g e | Vikas Agarwal (AY: 2017-18) 8. The appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 11.02.2026