I.T.O.,WARD-1(2), KOLKATA vs. M/S GABHAWALA TAX ADVISORS PVT. LTD.(FORMERLY KNOWN AS M/S OSTRICH TIE UP PVT. LTD.), GURUBAGH

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ITA 1831/KOL/2019Status: DisposedITAT Kolkata19 April 2024AY 2011-12Bench: SHRI SANJAY GARG (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the assessee had availed the benefit of the Vivad Se Vishwas Act, 2020, making the appeal infructuous. Consequently, the appeal filed by the revenue was dismissed.

What were the facts?

The revenue filed an appeal against the deletion of reassessment proceedings and additions made by the Assessing Officer. The assessee had opted for the Vivad Se Vishwas Scheme, leading to a settlement of tax arrears.

What were the issues?

Whether the reassessment proceedings were validly initiated and whether additions on account of unexplained cash credit were justified. The primary issue became moot due to the Vivad Se Vishwas settlement.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH KOLKATA

Before: SHRI SANJAY GARG & SHRI RAKESH MISHRA

For Respondent: Shri P. P. Barman, Addl. CIT, Sr. DR
Hearing: 18.04.2024Pronounced: 19.04.2024

Present for: Appellant by : N on e Respondent by : Shri P. P. Barman, Addl. CIT, Sr. DR Date of Hearing : 18.04.2024 Date of Pronouncement : 19.04.2024 O R D E R

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

1.

This appeal filed by the revenue is against the order of Ld. Commissioner of Income Tax (Appeals)-1, Kolkata (hereinafter referred to as “the Ld. CIT(A)” vide Appeal No. 10300/CIT(A)-1/Kol/Ward- 1(2)/2017-18 dated 03.05.2019 against the assessment order by Asst. CIT (OSD), Ward-1(2), Kolkata u/s. 147/144 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2011-12.

2.

Grounds of appeal raised by the revenue are reproduced as under:

M/s. Gabhawala Tax Advisors Pvt. Ltd. AY: 2011-12. “1. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the reopening of assessment u/s 147 of the IT Act made by the A.O. only on the premise that reason recorded for initiation of proceedings assessment u/s 147 of the IT Act,1961 was not provided to the assessee and ignoring the fact that notice u/s 148 was issued after obtaining necessary approval and the order was passed after giving due opportunity of being heard to the assessee.

2. That on the facts and circumstances of the case and in law the Ld. CIT(A) has erred in quashing the reopening of assessment u/s 147 of the IT Act and has erred in appreciating the facts that the A.O. has recorded his reason to believe that income chargeable to tax has escaped assessment while reopening the case for year under consideration for reassessment.

3. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the entire additions on account of unexplained cash credit u/s 68 of RS.4,28,60,000/­ and Rs.20,00,000/­ made by A.O.

4. The appellant craves leave to amend, modify, alter or abrogate any grounds either before appellant proceedings or in the course of appellant proceedings.”

3.

In this case earlier the assessee had filed an application requesting to transfer the appeal to the Income Tax Appellate Tribunal, Varanasi Bench, Varanasi and vide order dated 27.12.2023 the Hon’ble President, ITAT had ordered as under: “ Shri Abhijit Kundu, CIT­DR appeared for the Revenue. Shri A M Gabhawala appearing for the applicant­assessee states that the assessee had opted for Vivad Se Vishwas Scheme' and in pursuance of the order passed therein, the appeal has become infructuous. In such circumstances, the learned counsel on instructions seeks leave to withdraw the application as nothing survives in the application for transfer. The application for transfer is disposed off as withdrawn. It will be open to the regular Bench at Kolkata to pass appropriate orders in the appeal in view of the statement made on behalf of the assessee.”

4.

When the case came up for hearing before us, it was observed that Form No. 5 dated 05.07.2022 has been issued by the Pr. CIT-1, Kolkata which is an order of full and final settlement of tax arrear u/s. 5(2) read with section 6 of the Direct Tax Vivad Se Vishwas Act, 2020 (3 of 2020) read with the Direct Tax Vivad Se Vishwas Rules, 2020. Hence, in view of the fact that assessee has availed the benefit of the Direct Tax Vivad Se Vishwas Act, 2020, the appeal filed becomes infructuous in view of

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