ITAT Delhi Judgments — March 2025

The Income Tax Appellate Tribunal dismissed the appeal as withdrawn, acknowledging the assessee's decision to opt for the Vivad se Vishwas Scheme. The Tribunal granted the assessee liberty to apply for restoration of the appeal if their declaration under the scheme is not accepted by the Revenue, aligning with a precedent set by the Madras High Court.

The Tribunal condoned the delay, finding the assessee's reasons bonafide as service of notices was not evident from the record. It restored the matter to the CIT(E) for de novo consideration of the Section 12A application, directing that the assessee be given a reasonable opportunity of hearing.

The tribunal accepted the assessees' contention regarding non-appearance and decided that the interests of justice would be served by remitting all appeals back to the CIT(A). The CIT(A) is directed to consider the issues afresh after providing adequate opportunity of being heard to both assessees, who are also directed to cooperate.

The tribunal remitted the case back to the CIT(A) for a fresh decision, instructing the CIT(A) to provide the assessee an adequate opportunity of being heard. The assessee was directed to cooperate with the CIT(A) proceedings.

The Tribunal upheld the CIT(A)'s decision, noting that the AO had issued notices under Section 133(6) and received confirmations from the parties. These parties had offered receipts to tax, and TDS was deducted by the assessee. Considering the specialized nature of the assessee's business and the services provided, the CIT(A)'s finding of genuineness was confirmed as the Revenue failed to controvert these facts.

Following a precedent from the Madras High Court, the tribunal dismissed the appeal as withdrawn. However, it granted the assessee liberty to seek restoration of the appeal if the declaration filed under the Vivad Se Viswas Scheme is not accepted by the Revenue authorities.

The Income Tax Appellate Tribunal acknowledged the assessee's decision to resolve the matter through the DTVSVS 2024. Consequently, noting the assessee's choice, the tribunal dismissed the appeal as withdrawn.

The Tribunal held that the assessment order was passed in violation of principles of natural justice as no show-cause notice was issued. The impugned orders were set aside.

Following the precedent of the Hon'ble Madras High Court, the tribunal dismissed the appeal as withdrawn. It granted the assessee liberty to restore the appeal by filing a miscellaneous application if the declaration under the Vivad Se Vishwas Scheme, 2024, is not accepted by the Revenue for any reason.

The Tribunal acknowledged the genuine reasons for non-appearance before the Ld. CIT(A) and remitted all 8 appeals back to the Ld. CIT(A) for fresh consideration. The Ld. CIT(A) is directed to provide adequate opportunity to both assessees, who are also directed to cooperate.

The Tribunal held that the assessee failed to prove any actual business activity and that his turnover represented accommodation entries. However, the addition made by the AO at 2% was deleted as the assessee admitted to earning commission on quantity from Rs. 1 to Rs. 1.5 per quintal.

The ITAT found the assessee's explanation for not submitting details before the AO reasonable and noted that the CIT(A) had not decided the matter on merits. Therefore, the ITAT set aside both the assessment order and the penalty order, restoring the matters to the Assessing Officer for de novo assessment and adjudication with proper opportunity to the assessee.

The Tribunal found merit in the assessee's contention regarding non-appearance due to a genuine reason. It was held that to serve the interest of justice, the issues in dispute should be remitted back to the Ld. CIT(A) for a fresh decision after providing an adequate opportunity of being heard.

Following the assessee's submission of having opted for the Vivad Se Viswas Scheme, the Tribunal dismissed the appeal as withdrawn. However, it granted liberty to the assessee to seek restoration of the appeal by filing a miscellaneous application, should their declaration under Section 4 of the Vivad Se Viswas Scheme Act not be accepted by the Revenue.