ASSISTANT COMMISSIONER OF INCOME TAX-I, KANPUR vs. SHRI RAJ PREET SINGH, KANPUR

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ITA 7/LKW/2020Status: DisposedITAT Lucknow01 June 2022AY 2015-164 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. However, considering the settlement under the Vivad Se Vishwas Scheme and the Department's application to withdraw the appeal, the appeal was dismissed as withdrawn.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order with a significant delay. During the pendency of the appeal, the assessee opted for the Vivad Se Vishwas Scheme for settlement. The Department also filed an application to withdraw the appeal.

What were the issues?

Whether the Revenue's appeal should be dismissed as withdrawn due to settlement under the Vivad Se Vishwas Scheme and the Department's request for withdrawal.

Which sections of the Income-tax Act were involved?

Section 268A,Section 5,Section 6

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI. A. D. JAIN & SHRI T. S. KAPOOR

For Respondent: Shri Pankaj Sachan, D.R

PER A.D. JAIN, V.P.: This is Revenue’s appeal against the order of the ld. CIT(A)-I, Kanpur, dated 20.11.2018 for Assessment Year 2015- 16. 2. There is a delay of 332 days in filing of the appeal. The Revenue has filed an application dated 2.1.2020 for condonation of delay, which is reproduced as below: “Sub: Request for Condonation of delay in filing of appeal in the case of Shri Raj Preet Singh, H. No. 54, Ground Floor, Durga Housing Society, Shiv Katra Road, Lal Bunglow, Kanpur, A.Y. 2015-16-Regarding- Kindly refer to the above. In this connection, it is submitted that Order of Commissioner of Income Tax (Appeals)- 1, Kanpur in the case of Shri Raj Preet Singh, A. Y.-20 15-16 has been received in the office of the Principal Commissioner of Income Tax-1, Kanpur on 11.12.2018 and last date of filing departmental appeal was 9.2.2019. Proposal for filing of appeal before the Hon'ble ITAT, Lucknow was sent to the Principal Commissioner of Income Tax-1, Kanpur. The Tax effect involve in the case is Rs.13,11,603/-. The Principal Commissioner of Income Tax- 1, Kanpur vide letter dated 28.1.2019 had not recommended the proposal for filing an appeal before the Hon'ble ITAT, Lucknow on the ground that the tax effect involved in the case is below the monetary limit prescribed by the CBDT, New Delhi vide instruction no. 03/2018 dated 11.7.2018. In this case also, the sale of shares is not a natural phenomenon but an arrangement of dubious design of providing accommodation entry of Long Term Capital Gain to introduce unaccounted own money as exempt income in the form of LTCG on sale of shares. Later on, the CBDT, New Delhi vide Circular No. 23 of 2019 dated 6.9.2019 and O.M. dated 16.9.2019 has decided that notwithstanding anything contained in any circular issued u/s 268A specifying monetary limits for filing of departmental appeals before Income Tax Appellate Tribunal (ITAT), High Courts and SLPs/appeals before Supreme Court, appeal may be filed on merits as an exception to said circular, where Board, by way of special order direct filing appeal on merit in cases involved in organized tax evasion activity. In the O.M. dated 16.9.2019 the following instruction has been given: "The undersigned is directed to refer to Circular No.23 of 2019 dated 6the September, 2019 and to say that by virtue of powers of the Central Board of Direct Taxes u/s 268A of Income-tax Act, 1961, the monetary limits fixed for filing appeals before ITAT/HC and SLPs/appeals before Supreme Court shall not apply in case of assessee claiming bogus LTCG/STL through penny stocks and appeals/SLPs in such cases shall be filed on merits." Therefore, the delay caused in filing of appeal within the limitation period i.e. 9.2.2019 beyond control of the undersigned. It is therefore requested to kindly condone the delay.”

3.

Having carefully perused the application for condonation of delay, we find that there was sufficient cause for the delay in filing of the appeal. Accordingly, we condone the delay and admit this appeal for hearing.

4.

None was present on behalf of the assessee. However, the assessee, Shri Raj Preet Singh has filed an application dated 23.2.2022, received in the Registry of this Office on 2.3.2022, vide which it has been submitted that the Income Tax Department has passed Order in Form No.5 on 9.2.2021 under the Vivad Se Vishwas Scheme. The assessee has filed the copy of Form No.5, i.e., the order of the PCIT-1, Kanpur for full and final settlement of tax arrears under section 5(2) read with section 6 of the DTVSVA, 2020, for Assessment Year 2015-16. It was contended that since the assessee has opted for Vivad Se Viswas Scheme and tax payable on the Departmental appeals has been deposited and order for final settlement of tax arrears has been passed by the designated authority, therefore, the appeal filed by the Department may be dismissed as withdrawn.

5.

On behalf of the Revenue, the Dy. CIT – 1(1)(1), Kanpur has also filed an application, dated 24.5.2022, received in the Registry of this Office on 30.5.2022, vide which it has been submitted that the assessee had filed an application under Vivad Se Viswas Scheme-2020 to settle the tax dispute for Assessment Year 2015-16, which has been accepted by the Department and the Competent Authority, i.e., the Pr. CIT-1, Kanpur has issued Form no.5 on 9.2.2021, in view of payment of Rs.6,53,130/- towards full & final settlement of tax arrears, therefore, the Department be allowed to withdraw the appeal.

6.

The ld. D.R., inviting our attention to the aforesaid application of the Dy. CIT – 1(1)(1), Kanpur, submitted that the appeal of the Department be dismissed as withdrawn.

7.

In view of the above facts, the appeal of the Department is ordered to be dismissed as withdrawn. 8. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 01/06/2022.

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