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Facts
The appeals arose from orders passed under section 250, an assessment order under s. 143(2), and a penalty order under s. 271(1)(c) for AY 2014-15. The assessee challenged ex-parte orders passed by the CIT(A) without proper opportunity or adjudication on merits, and the upholding of various additions/disallowances under sections 54 and 43B, and a penalty.
Held
During the hearing, the assessee's counsel informed the Tribunal of the assessee's decision to opt for "The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024" and requested to withdraw the appeals. With no objection from the Revenue, the Tribunal dismissed the appeals as withdrawn. The assessee was granted liberty to seek restoration if the benefit of the VSV Scheme is not availed for bona fide reasons.
Key Issues
The primary issues concerned the validity of ex-parte orders passed by the CIT(A) without proper opportunity or adjudication on merits, and the upholding of various additions/disallowances under sections 54, 43B, and a penalty under 271(1)(c). Ultimately, the issue shifted to the withdrawal of appeals as the assessee opted for the DTVSV Scheme.
Sections Cited
Section 250, Section 143(2), Section 271(1)(c), Section 54, Section 43B
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Income Tax Appellate Tribunal, DELHI “G” BENCH: NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI PRADIP KUMAR KEDIA&
The captioned appeals arises from the respective orders passed under section 250 arises reference to assessment order passed under s. 143(2) and penalty passed under s. 271(1)(c) of the Income Tax Act, 1961 [“the Act”] for assessment year 2014-15 in question.
The assessee has raised following grounds in both these appeals:-
[Assessment Year : 2014-15] 1. “That the Ld. CIT(A) has erred in law & facts of the case in passing the ex-parte order u/s 250 of the Income Act which is highly unjustified, uncalled for and needs to be quashed.
2. That the Ld. CIT(A) has erred in law & Legal facts of the case in passing the ex-parte order without according proper opportunity of being heard which is highly unjustified, uncalled for and needs to be quashed.
3. That the Ed. CIT(A) has erred in law & facts of the case in passing the ex-parte order without adjudicating the issues on merits which is highly unjustified, uncalled for and needs to be quashed.
4. That the Ld. CIT(A) has erred in law & facts of the case in upholding addition of Rs. 52,45,641/ on account of disallowance u/s 54 of the & 46/Del/2024 Satish Chandra vs ACIT Income Tax Act which is highly unjustified, uncalled for and needs to be deleted.
5. That the Ld. CIT(A) has erred in law & facts of the case in upholding addition of Rs. 37,123/- on account of disallowance u/s 43B of the Income Tax Act which is highly unjustified, uncalled for and needs to be deleted.
That the Ld. CIT(A) has erred in law & facts of the case in upholding the adhoc addition of Rs. 5,00,000/- on account of disallowance of expenses which is highly unjustified, uncalled for and needs to be deleted.”
[Assessment Year : 2014-15] 1. “That the Ld.CIT(A has erred in law & facts of the case in passing the ex-parte order u/s 250 of the Income Tax Act which is highly unjustified, uncalled for and needs to be quashed.
2. That the Ld.CIT(A) has erred in law & facts of the case in passing the ex-parte order without according proper opportunity of being heard which is highly unjustified, uncalled for and needs to be quashed.
3. That the Ld.CIT(A) has erred in law & facts of th case in upholding the penalty imposed amounting to Rs.12,46,571/- u/s 271(1)(c) of the Income tax Act which is highly unjustified, uncalled for and needs to be deleted.”
When the matter was called for hearing, the Ld. Counsel for the assessee submitted that as per the instruction of the client, the assessee is opting for the ongoing “The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024”. The learned Counsel thus submitted that the assessee does not seek to pursue the said appeals owing to exercise of option for availing VSV Scheme and consequently requested that the written application for withdrawal of appeals may please be granted.
The Ld. Sr. DR for the Revenue stated that he has no objection to withdraw the appeals as sought on behalf of the assessee.
In the light of oral/written request made on behalf of the assessee, the captioned appeals are dismissed as withdrawn. However, in the event, the assessee fails to avail the benefit of VSV Scheme for any bonafide reasons, then the assessee concerned shall be at liberty to seek restoration of original appeals for hearing before ITAT in accordance with law.