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Facts
The assessee's assessment order for AY 2015-16 under Section 153A r.w.s. 143(3) was challenged and subsequently settled under the Vivad Se Vishwas Act, 2020 (VSV), with Form 5 issued by the Pr. CIT. Despite this, the Pr. CIT later initiated revision proceedings under Section 263 for the same order, deeming it erroneous and prejudicial to the revenue, prompting the assessee's appeal, which was filed with a 247-day delay.
Held
The Tribunal condoned the delay in filing the appeal. It ruled that the Pr. CIT, having issued Form 5 under the VSV Act and thereby accepting the settlement of the assessment dispute, could not subsequently revise the same order under Section 263. The Tribunal concluded that such a revision was unjustified, and accordingly, quashed the Pr. CIT's revision order.
Key Issues
Whether the Pr. CIT can revise an assessment order under Section 263 of the Income Tax Act if it has already been settled and finalized under the Vivad Se Vishwas Act, 2020, by the same authority.
Sections Cited
Section 153A, Section 143(3), Section 263, Vivad se Vishwas Act, 2020
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI M. BALAGANESH
O R D E R PER M. BALAGANESH, A. M.: The appeal in AY 2015-16, arises out of the 1. order of the Pr. Commissioner of Income Tax-2, Delhi [hereinafter referred to as „ld. Pr. CIT‟, in short] in Appeal No. 22/1042265218(1) dated 31.03.2022 against the order of assessment passed u/s 153A of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) dated 25.12.2019 by the Assessing Officer, ACIT, Circle-20, Delhi (hereinafter referred to as „ld. AO‟).
At the outset, there is a delay of 247 days in filing of appeal by the assessee before us. The assessee had filed a condonation petition together with a sworn affidavit supporting the same. Considering the reason adduced thereon, we find that assessee was prevented from sufficient cause in not filing the appeal before us in time. Hence, we are inclined to condone the
The present appeal is against the revision order passed by the ld PCIT u/s 263 of the Act dated 31.3.2022 seeking to revise the search assessment order passed by the ld AO u/s 153A r.w.s. 143(3) of the Act dated 25.12.2019. The assessee had raised the following additional grounds before us:-
a) Whether the Ld. Pr. CIT was justified in exercising his jurisdiction u/s 263 of the Act to set aside the assessment order which already has attained finality after being settled under Vivad se Vishwas Act, 2020. b) Whether the Ld. Pr. CIT in exercising his power under section 263 of the Act, when in fact it is he who has issued FORM 3 and FORM -5 under VSV Act, 2020.
We find that the additional grounds raised by the assessee go to the root of the matter and hence we are inclined to admit the same and take up for adjudication first.
We find that in the search assessment framed u/s 153A r.w.s. 143(3) of the Act dated 25.12.2019, the ld AO had determined the total income of the assessee at Rs 50,02,680/- as against the returned income of Rs 7,01,820/-. The assessee challenged the said assessment before the ld CIT(A). When the appeal was pending before the ld CIT(A), the assessee settled the dispute by paying the requisite taxes thereon by availing the benefit provided in Vivad Se Vishwas Act , 2020 („VSV‟ in short). The copy of Form 3 issued by ld PCIT accepting the VSV application of the assessee and determining the tax payable by the assessee under VSV 2020 is enclosed in Pages 4 to 5 of the Paper Book. The assessee duly paid the said taxes. Thereafter, Form 5 was issued by ld PCIT settling the entire tax dispute prevailing in Asst Year 2015-16 which is enclosed in Page 7 of the Paper Shikha Mittal Book. Hence, the entire dispute that arise out of the assessment order framed by the ld AO u/s 153A r w.s. 143(3) of the Act dated 25.12.2019 stood settled by VSV 2020.
The ld PCIT is now seeking to revise the very same search assessment order dated 25.12.2019 stating that the said order is erroneous and prejudicial to the interest of the revenue. Without going into the merits of such revision, we hold that the Certificate in Form 5 was issued by the ld PCIT himself under VSV 2020 accepting to the plea of the assessee to settle the entire dispute arising out of the assessment order dated 25.12.2019. Now the very same PCIT having accepted earlier that the assessment order was correct in all aspects, now cannot say that the very same assessment order is erroneous and prejudicial to the interest of the revenue warranting revision u/s 263 of the Act. Hence we have no hesitation to quash the revision order passed u/s 263 of the Act by the ld PCIT. Accordingly, the additional grounds and the original grounds raised by the assessee are allowed.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 26/11/2024.