BEST AROMATICS LIMITED,NEW DELHI vs. ITO,WARD 4(1) , DELHI

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ITA 2467/DEL/2022Status: DisposedITAT Delhi16 May 2024AY 2017-18Bench: SH. G.S. PANNU, VICE PRESIDENT AND SH. ANUBHAV SHARMA (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal allowed the appeal for statistical purposes, setting aside the NFAC's order. It restored the matter to the First Appellate Authority (NFAC) for a fresh decision on merits, directing that the assessee be given a proper opportunity of hearing.

What were the facts?

The assessee's initial assessment for AY 2017-18 was settled under the VSVS scheme, leading to the withdrawal of a previous appeal. Subsequently, the case was reopened under Section 147/148, resulting in a fresh assessment order which the assessee challenged before the NFAC. The NFAC erroneously dismissed this subsequent appeal, assuming the issue was already settled under VSVS, despite it being a reopened assessment, and the appeal to the Tribunal was filed with a 71-day delay, which was condoned.

What were the issues?

Whether the NFAC's dismissal of an appeal against a reopened assessment was erroneous, given its assumption that the issue was already settled under the VSVS scheme, and whether the matter should be restored for a decision on merits.

Which sections of the Income-tax Act were involved?

Section 154,Section 147,Section 144,Section 144B,Section 143(3),Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI

Before: SH. G.S. PANNU & SH. ANUBHAV SHARMA

Hearing: 20/03/2024

Appellant by Sh. Amit Sharma, Advocate Respondent by Sh. Amit Katoch, Sr DR Date of hearing: 20/03/2024 Date of Pronouncement: /05/2024 ORDER PER ANUBHAV SHARMA, JM

The present appeal has been filed by the assessee against the order of NFAC, Delhi dated 26.05.2022 pertaining to A.Y.2017-18.

2.

Heard. At the very outset, it comes up that the appeal before the Tribunal is filed with the delay of 71 days for which assessee has filed an application for condonation of the delay supported with an affidavit that assessee had availed remedy of rectification u/s. 154 of the IT Act, 1961 due to which there was delay. In the light of the fact that delay is not inordinate, the application for condonation of delay of 71 days is allowed.

3.

On merits at the time of hearing it comes up that Ld. First Appellate Authority has passed the impugned order on the basis that assessee has opted for VSVS scheme and declaration in Form – 5 dated 03.10.2020 stands filed before Pr. CIT, Delhi-1.

4.

Ld. AR apprised the Bench that NFAC has dismissed the appeal on erroneous fact as the impugned assessment order dated 29.03.2022 was passed u/s. 147 r.w.s 144 alongwith section 144B of the Act against which no alternate remedy of VSVS was adopted.

5.

It appears that initially assessment was completed u/s. 143 (3) of the Act and assessment order dated 30.12.2019 was passed and which was challenged in first appeal. However, the assessee got settled the issue under VSVS on 17.03.2020 and the appeal was withdrawn on 07.01.2021. Subsequently the case was reopened u/s. 147 r.w.s 148 and the assessment was completed on 29.03.2022 which was challenged again in the first appeal before NFAC. It appears that NFAC has passed the impugned order assuming the issue raised in the later appeal to be settled under the VSVS scheme.

6.

In the light of the aforesaid we allow the appeal of the assessee for statistical purpose and restore the issue on merits to the file of the First Appellate Authority. Needless to say there an opportunity of hearing shall be given to the assessee / appellant by the first appellate authority before disposing of the appeal on merits.

Order pronounced in the open court on 16.05.2024.

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