M/S JAYSHRI STRUCTURES,AHMEDABAD vs. THE ASSTT. COMMR. OF INCOME TAX, CEN. CIR.-1, RAJKOT-GUJARAT

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ITA 45/RJT/2020Status: DisposedITAT Rajkot15 September 2022AY 2011-123 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the penalty appeal was related to the quantum appeal. As the quantum appeal was settled under the VSVS Scheme, the penalty appeal was also considered settled.

What were the facts?

The assessee filed an appeal against a penalty levied under section 271AAA. The assessee had previously opted for the Vivad Se Vishwas (VSVS) Scheme for the quantum appeal, which was dismissed as withdrawn.

What were the issues?

Whether a penalty appeal can be withdrawn/dismissed as settled when the related quantum appeal has been settled under the Vivad Se Vishwas Scheme.

Which sections of the Income-tax Act were involved?

Section 271AAA,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SMT.ANNAPURNA GUPTA & T.R. SENTHIL KUMAR

Hearing: 14/09/2022Pronounced: 14/09/2022

PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER

1.

The present appeal has been filed by the assessee against the order passed by the Commissioner of Income Tax (Appeals)-11, Ahmedabad (in short referred to as CIT(A)), dated 8.10.2018 pertaining to Assessment Year 2011-12 under section 250(6) Income Tax Act, 1961 ("the Act" for short) confirming levy of penalty under section 271AAA of the Act.

2.

When the matter was called for hearing, it has brought to our notice that the assessee had opted for Vivad Se Vishwas Scheme in quantum proceedings and its quantum appeal accordingly was 2 dismissed as withdrawn in vide order dated 29.9.2021. Copy of the order of the Tribunal was placed before us. It was pointed out that the appeal was a penalty appeal in relation to the said quantum appeal and stood settled on settlement of the quantum appeal in VSVS scheme, 2020. Our attention was drawn to the issue addressed by the CBDT in its clarification issued on the VSV scheme in Cir.No.9/2020 dated 22.4.2020 at Question No.8 as under:

Question No. 8 Imagine a case where an appellant desires to settle concealment penalty appeal pending before CIT(A), while continuing to litigate quam appeal that has travelled to higher appellate forum. Considering these are two independent and different appeals, whether appellant can settle one in exclusion of others ? If yes, whether settlement of penalty appeal will have any impact on quantum appeal ? Answer: If both quantum appeal covering disputed tax and appeal against penalty levied on such disputed tax for an assessment year are pending, the declarant is required to file a declaration form covering both disputed tax appeal and penalty appeal. However, he would be required to pay relevant percentage of disputed tax only. Further, it would not be possible for the appellant to apply for settlement of penalty appeal only when the appeal of disputed tax related to such penalty is still pending.

3 3. In view of the same, the assessee sought withdrawal of the present appeal as settled under the VSV Scheme, 2020. The ld.DR had no objection to the same.

4.

In the light of the above submission made by the assessee, we find no reason to keep pending appeal of the assessee before the Tribunal. Accordingly, the appeal of the assessee stands dismissed.

5.

In the result, appeal of assessee stands dismissed under VSV Scheme.

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