CHARU CHAINS & JEWELS PVT. LTD.,DELHI vs. ACIT, CIRCLE-6(1), DELHI

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ITA 2198/DEL/2022Status: DisposedITAT Delhi24 April 2023AY 2017-182 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) dismissed the appeal based on an incorrect assumption of facts. The matter was restored to the CIT(A) for adjudication on merits.

What were the facts?

The assessee's appeal was dismissed by the CIT(A) as withdrawn, believing the assessee had settled the dispute under the Vivaad Se Vishwas Scheme (VSVS). However, the assessee provided evidence that VSVS was only availed for a penalty appeal, not the quantum appeal.

What were the issues?

Whether the CIT(A) was justified in dismissing the assessee's appeal as withdrawn due to the alleged availing of the Vivaad Se Vishwas Scheme for the dispute.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: SHRI C.M.GARG & SHRI M. BALAGANESH

Hearing: 20/04/2023Pronounced: 24/04/2023

O R D E R PER M. BALAGANESH, A. M.: 1. This appeal in A.Y. 2017-18 arises out of the order by the Ld. Commissioner of Income Tax(Appeals), NFAC, Delhi in appeal No. ITBA/NFAC/S/250/2022-23/1043415999(1) dated 13.06.2022 (hereinafter referred to as Ld. CIT(A) in short) against the order of assessment passed u/s 143(3) the Income Tax Act, 1961 (hereinafter referred to as Act) dated 21.012.2019 by the Ld. ACIT, Circle-6(1), Delhi (hereinafter referred to as ld. AO).

2.

Though the assessee has raised several grounds of appeal before us, we find that the core issue to be decided is as to whether the ld CIT(A), NFAC was justified in dismissing the appeal of the assessee as withdrawn on the ground that the assessee has availed Vivaad Se Vishwas Scheme (VSVS), 2020 to settle the dispute.

3.

We have heard the rival submissions and perused the materials available on record. The ld AR stated with evidence that the assessee had actually availed VSVS scheme only for penalty appeal and not for the quantum appeal. The evidence filed by the ld AR in this regard in Form No. 5 issued by the competent authority very clearly states so. Hence, we find that the ld CIT(A) had dismissed the appeal of the assessee based on incorrect assumption of facts. When this was confronted to the ld DR, he fairly agreed that the matter be sent back to the file of the ld CIT(A) for adjudication on merits. Having considered the material available on record, we deem it appropriate to restore the appeal to the file of the ld CIT(A) for de novo adjudication on merits in accordance with the law. Accordingly, grounds raised by the assessee are allowed for statistical purposes.

4.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 24/04/2023.

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