MULTI DIMENSIONAL ASSET & WEALTH CREATION LLP ( EARILER MULTI-DIMENSIONAL ASSET & WEALTH CREATION PRIVATE LIMITED),MUMBAI vs. ITO WARD- 10(2)(4), MUMBAI

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ITA 4349/MUM/2023Status: DisposedITAT Mumbai31 May 2024AY 2011-12Bench: SHRI PRASHANT MAHARISHI (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)7 pages
AI SummaryAllowed

What did the Tribunal hold?

The tribunal found that the CIT(A) erred in dismissing the appeal when the assessee had paid tax under the VSV Scheme and was awaiting Form 5. The tribunal held that the Assessing Officer should verify the payment made under Form 3 and subsequently issue Form 5 or communicate any issues to the assessee. The merits of the Section 68 addition were not adjudicated due to the VSV option.

What were the facts?

The assessee's case for A.Y. 2011-12 involved an assessment under Section 143(3) read with Section 147, resulting in an addition of ₹60 lacs under Section 68 for unexplained cash credits. The assessee opted for the Vivad se Vishwas Scheme (VSV) and claims to have paid the determined tax but was not issued the final settlement certificate (Form 5). The CIT(A) dismissed the assessee's appeal and confirmed the addition.

What were the issues?

Whether the CIT(A) can dismiss an appeal and confirm an addition when the assessee has opted for and complied with the Vivad se Vishwas Scheme, but has not received the final settlement certificate (Form 5).

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 250,Section 68,Section 246A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI, AM & SHRI SUNIL KUMAR SINGH, JM

For Appellant: Mr. Vishal D. Shah, AR
For Respondent: Smt. Mahita Nair, DR
Hearing: 28.05.2024Pronounced: 31.05.2024
1.

A.Y. 2011-12, against the appellate order dated 16th October, 2023, passed by the National Faceless “1. On the facts and under the circumstances of the case and in law, the Ld. CIT(A) erred in passing the order u/s 250 dated 16.10.2023 by dismissing the appeal which is bad in law.

2.

On the facts and under the circumstances of the case and in law, the Ld. CIT(A) erred in confirming the disallowance made by the Ld. AO on account of unexplained cash credits u/s 68 amounting to Rs. 60,00,000/- without appreciating the fact that appellant had opted for Vivad se Vishwas (VSV) Scheme, 2020 for the A.Y. 2011-12.

3.

a) On the facts and under the circumstances of the case and in law, the Ld. CIT(A) erred in ignoring the fact that appellant had filed all the relevant VSV Forms víz VSV-1 and VSV-2 on 29.01.2021 as prescribed, before the designated authority. b) On the facts and under the circumstances of the case and in law, the Ld. CIT(A) erred in stating that matter

4.

On the facts and under the circumstances of the case and in law, the Ld. CIT(A) erred in stating that appellant was riddled with contradiction and confusion in as much as it pleaded for settlement of disputed demand under VSVs but later retracted before final settlement and pursued the appeal filed u/s 246A of the Income Tax Act without appreciating the fact that upon filing of the Form VSV-1 and Form VSV-2 and making payment of tax and reporting the same in Form VSV-4 filed in response to Form VSV-3, any appeal filed by the appellant shall be deemed to have been withdrawn.

5.

On the facts and under the circumstances of the case and in law, the Ld. CIT(A) erred in appreciating the fact that appellant opting for VSV was deemed to have decided to withdraw the appeal and thus, appeal for the relevant year stands withdrawn and not dismissed.

7.

In the result, the appeal filed by the assessee is allowed as indicated above.

Order pronounced in the open court on 31.05. 2024.

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