HARSHA SHAH,DELHI vs. ITO, WARD-59(3), NEW DELHI

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ITA 2934/DEL/2022Status: DisposedITAT Delhi18 July 2023AY 2015-162 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessee opted for the Vivad se Vishwas Scheme, no penalty is leviable. The penalty was cancelled on this ground, and the appeal was allowed.

What were the facts?

The assessee opted for the Vivad se Vishwas Scheme, which typically implies no penalty is levied. However, the Assessing Officer imposed a penalty, and the CIT(A) dismissed the appeal as infructuous due to the scheme opting. The assessee argued that the penalty was wrongly imposed and the appeal was dismissed without proper consideration.

What were the issues?

Whether a penalty can be levied when the assessee has opted for the Vivad se Vishwas Scheme, and whether the CIT(A) correctly dismissed the appeal without considering the scheme's implications.

Which sections of the Income-tax Act were involved?

Section 270A,Section 275,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: B: NEW DELHI

Before: SHRI CHANDRA MOHAN GARG & SHRI PRADIP KUMAR KEDIA

Hearing: 12.06.2023Pronounced: 18.07.2023

PER CHANDRA MOHAN GARG, J.M. This appeal has been filed against the order of NFAC, New Delhi dated 28.10.2022 for AY 2015-16. 2. The grounds of assessee are as follows:-

1.

On the facts and circumstances of the case and in law, the Ld. CIT-A has grossly erred, in dismissing appeal of the assessee stating that "Assessee has opted for Vivad se Vishwas Scheme, accordingly such appeal is treated as infructuous as per the Direct Tax Vivad Se Vishwas Act,2020" without appreciating the facts that assessee has opted for Vivad se Vishwas Scheme and in such a case no penalty shall be levied on the assessee, however, Ld. AO ignoring such facts passed order imposing penalty on the assessee and Ld. CIT-A has dismissed the appeal without going through the ground of appeal and providing any opportunity of being heard to the assessee.

2.

On the facts and circumstances of the case, the penalty order passed under section 270A of the Act is time barred and passed without apricating the statutory time limit prescribed under section 275 of the Act and therefore such order is erroneous and bad in law.

3.

The ld. counsel of assessee submitted that the Ld. CIT-A has grossly erred, in dismissing appeal of the assessee stating that "Assessee has opted for Vivad se Vishwas Scheme, accordingly such appeal is treated as infructuous as per the Direct Tax Vivad Se Vishwas Act,2020" without appreciating the facts that assessee has opted for Vivad se Vishwas Scheme and in such a case no penalty shall be levied on the assessee, however, Ld. AO ignoring such facts passed order imposing penalty on the assessee and Ld. CIT-A has dismissed the appeal without going through the ground of appeal and providing any opportunity of being heard to the assessee. He further submitted that therefore penalty may kindly be cancelled.

4.

Replying to the above, the ld. Senior DR supported the order of the authorities below. However, he did not controvert that the coordinate bench of ITAT Delhi by order dated 25.01.2021 in ITA No. 393/Del/2019 for same AY 2015-16 has dismissed appeal of assessee as withdrawn under Vivad se Vishwas Scheme 2020. Therefore, when the matter has been settled under said scheme then no penalty is leviable on the assessee u/s. 271(1)(c) of the Act and hence the penalty is cancelled only on this count.

5.

In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 18.07.2023. (PRADIP KUMAR KEDIA) (CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 18th July, 2023. NV/-

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