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Facts
The Revenue filed appeals against CIT(A) orders for AY 2013-14 & 2015-16, where the CIT(A) dismissed appeals as infructuous, believing the disputes were settled under the Vivad se Vishwas (VSVS) Act. The assessee clarified that the VSVS settlement pertained only to disputes arising from regular assessment u/s 143(3), not the reassessment orders u/s 147 read with 142(1) which were the subject of the appeals.
Held
The ITAT held that the Ld. CIT(A) had incorrectly dismissed the appeals as infructuous, as the assessee had not settled the specific disputes related to reassessment orders under VSVS. Consequently, the ITAT restored the appeals to the CIT(A)'s file for fresh adjudication on merits, ensuring the assessee a reasonable opportunity.
Key Issues
Whether the CIT(A) erred in dismissing appeals against reassessment orders as infructuous, based on an erroneous assumption that the disputes were settled under the Vivad se Vishwas Scheme, when the VSVS settlement pertained to a different set of disputes.
Sections Cited
Section 147, Section 142(1), Section 143(3), Section 250, Direct Tax Vivad se Vishwas Scheme (VSVS) Act, 2020 (Clause 4(2))
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Income Tax Appellate Tribunal, DELHI BENCH “H” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI BRAJESH KUMAR SINGH
Assessee by Ms. Ananya Kapoor, Adv. Revenue by Shri Amit Katoch, Sr. DR सुनवाईक�तारीख/ Date of hearing: 23.04.2024 30.05.2024 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R PER C.N. PRASAD, J.M.
These two appeals are filed by the Revenue against different orders of the Ld. CIT(Appeals)-NFAC, Delhi dated 03.11.2023 for the assessment years 2013-14 & 2015-16. Revenue has challenged the orders of the Ld.CIT(Appeals) on the ground that the Ld.CIT(A) erred in dismissing the appeals of the assessee as infructuous as per clause 4(2) of the Direct Tax Vivad se Vishwas Scheme (VSVS) Act, 2020 ignoring the fact that the order passed u/s 147 r.w.s. 142(1) of the Act was not settled under VSVS.
During the course of hearing the Ld. DR submits that the Ld.CIT(A) dismissed the appeals of the assessee which were filed against the reassessment orders passed in pursuant to the provisions of section 147 of the Act on a mistaken impression that the disputes in these appeals were settled under VSVS, whereas the fact of the matter is that the assessee settled the disputed taxes under VSVS which were raised while completing the assessment u/s 143(3) of the Act. Ld. Counsel for the assessee also submitted that the assessee never settled the dispute in these appeals under VSVS. It is submitted that as a matter of fact the assessee has written a letter to the Ld.CIT(A)-NFAC, Delhi to revive the appeals and adjudicate the same on merits.
Heard rival contentions, perused the orders of the authorities below and the letter furnished by the assessee before the Ld.CIT(Appeals)-NFAC, Delhi dated 16.01.2024. Perusal of the Ld.CIT(A) order shows that the appeals of the assessee were dismissed as infructuous on the ground that the assessee has opted under VSVS and settled the disputed taxes. Subsequently by letter 2 dated 16.01.2024 the assessee requested the ld.CIT(A)-NFAC, Delhi stating that these appeals were not settled under VSVS by the assessee and the disputes arise from the orders passed by the Assessing Officer u/s 143(3) r.w.s. 147 of the Act. It was the contention of the assessee that what was settled under VSVS was the disputed taxes emanated from the orders passed u/s 143(3) of the Act by the AO. The contents of the letter are as under: -
The assessee also filed a similar letter for the AY 2015-16 before the Ld.CIT(A)-NFAC, Delhi for revival of the appeal. All these goes to show that assessee never settled the disputes in these appeals which were emanated out of the order passed by the AO u/s 143(3) r.w.s. 147 of the Act. We observed that the Ld.CIT(A) under the mistaken impression that the disputed taxes in these two appeals were settled under VSVS these appeals of the assessee were dismissed as infructuous.
In view of the above, these two appeals are restored to the file of the Ld.CIT(A) for deciding the grounds on merits after providing reasonable opportunity to the assessee.
In the result, appeals of the Revenue are allowed for statistical purpose.
Order pronounced in the open court on 30.05.2024