ACIT, CIRCLE-8(1), NEW DELHI V. ARIHANT KUMAR JAIN, NEW DELHI

MA 204/DEL/2021

AI Insights

The case involves Arihant Kumar Jain, the respondent, who contested the order of the CIT (A) dated 28/05/2018 in ITA No. 5342/Del/2018. During the appeal process, Jain opted for the VSV Scheme, which led to the issuance of Form No. 3 by the Department on 23/12/2020, determining the tax payable. Despite the Tribunal's earlier ruling in favor of the Revenue, Jain filed a miscellaneous application to recall this order, citing the issuance of Form No. 3 and subsequent payments under the VSV Scheme. The Tribunal acknowledged the oversight of not being informed about Form No. 3 during the initial hearing and thus recalled its earlier order, restoring the appeal to its original file but ultimately dismissing it due to the settlement under the VSV Scheme.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474840 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-10-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-09-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 10-11-2021
• Laws Referred To: Direct Tax Vivad-se-Vishwas Act, 2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: AKHILESH YADAV
• Section: 6; 5(2)

Judgement Text

" 1 M. A No. 204/Del/2021 & ITA No. 5342/Del/2018 ACIT Vs. Arihant Kumr Jain IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘A’ NEW DELHI BEFORE S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER M. A NO. 204/Del/2021 (A.Y 2014-15) in (ITA No. 5342/Del/2018) ACIT Circle-8(1) Room No. G-18/B, Ist Floor, C. R. Building, New Delhi (APPLICANT) vs Arihant Kumar Jain 31, Shankar Vihar, Vikas Marg, Near V3S, New Delhi 110092 PAN: AJRPJ7533M (RESPONDENT) (ITA No. 5342/Del/2018) ACIT Circle-8(1) Room No. G-18/B, Ist Floor, C. R. Building, New Delhi (APPLICANT) vs Arihant Kumar Jain 31, Shankar Vihar, Vikas Marg, Near V3S, New Delhi 110092 PAN: AJRPJ7533M (RESPONDENT) Applicant by Sh. Raj Kumar, CA & Sh. J. P. Sharma, Adv Respondent by Sh. Akhilesh Yadav, Sr. DR ORDER PER YOGESH KUMAR U.S., JUDICIAL MEMBER: The present miscellaneous application filed by the Assessee with a prayer to recall the order dated 27/01/2021 in ITA No. Date of Hearing 13.09.2024 Date of Pronouncement 28.10.2024 2 M. A No. 204/Del/2021 & ITA No. 5342/Del/2018 ACIT Vs. Arihant Kumr Jain 5342/Del/2018 (A.Y 2014-15) and also sought to dismiss the Appeal same for being covered under VSV Scheme, 2020. 2. Brief facts of the case are that, the Assessee has challenged the order of CIT (A) dated 28/05/2018 in ITA No. 5342/Del/2018. During the pendency of the appeal before the Tribunal, the Assessee applied under VSV Scheme, 2020 for settling the above tax dispute before the Department of Revenue. A Form No. 3 has been issued by the Department on 23/12/2020 by determining the tax payable by the Assessee. The above Appeal of the Department was heard by the Tribunal on 22/09/2021 and the said appeal of the Revenue has been allowed by the Co-ordinate Bench of the Tribunal vide order dated 27/10/2021. Aggrieved by the same, the Assessee preferred the present M.A for recalling the order of the Tribunal. 3. The Ld. Counsel for the Assessee submitted that during the pendency of the Appeal, the Assessee approached the Department for settling dispute under VSV Scheme and a Form No. 3 under the said Scheme has been issued on 23/12/2020. The Appeal of the Assessee was fixed for hearing before the Tribunal on 22/09/2021 3 M. A No. 204/Del/2021 & ITA No. 5342/Del/2018 ACIT Vs. Arihant Kumr Jain on which day, the Assessee’s Counsel filed an adjournment application, since the case was taken as heard, the Assessee filed one more letter on 22/09/2021 itself for requesting to re-fixing the case by mentioning issuance to Form No. 3 by the Department under VSV Scheme, but the said request was not entertained by the Tribunal. Further submitted that the Assessee has also paid the tax of Rs. 47,82,960/- as per VSV Scheme and on 29/09/2021 Form No. 4 was also issued and subsequently the Form No. 5 is also issued by the Department on 03/02/2022.Therefore, submitted that allowing of the appeal by the Tribunal which is error apparent on record has caused great hardship and injury and sought for recalling the order by correcting the said error apparent from record. 4. Per contra, the Ld. Departmental Representative submitted that the Assessee has not brought to the notice of the Tribunal regarding issuance of Form No. 3 on the date of hearing of the Appeal, therefore, now the Assessee cannot find fault with the order of the Tribunal and seek for recall of the said order. 4 M. A No. 204/Del/2021 & ITA No. 5342/Del/2018 ACIT Vs. Arihant Kumr Jain 5. Heard the parties perused the material. It is not in dispute that during the pendency of the Appeal in ITA No. 204/Del/2021, the Assessee opted for VSV Scheme and a Form No. 4 has been issued on 23/12/2020, the appeal was fixed for hearing on 22/09/2021, but neither the Assessee/AR nor the Departmental representative have brought to the notice of the Tribunal regarding issuance of Form No. 3 in favour of the Assessee. It was the case of the Assessee that the Assessee had filed an application for adjournment on 22/09/2021,however, the case was taken as heard, therefore, on the very same day the Assessee has filed an application for re-fixation of the case by mentioning Form No. 3 issued under VSV Scheme 2020. Though the Assessee has not informed the Bench regarding issuance of Form No. 3 under VSV Scheme, the fact remains that the Department has accepted the request of the Assessee for settling the tax dispute under VSV Scheme and issued Form No. 3 and on 28/09/2021 and the Assessee has also deposited sum of Rs. 47,82,960/- being tax demand under VSV Scheme. The Department has also issued Form No. 4 on 29/09/2021 and subsequently issued Form No. 5 on 5 M. A No. 204/Del/2021 & ITA No. 5342/Del/2018 ACIT Vs. Arihant Kumr Jain 03/02/2022. Thus, the Department cannot have grievance against the Assessee as the Assessee has settled the tax dispute with the Department of Revenue. In view of the above facts and circumstances, we recall the order dated 27/10/2021 and restore the Appeal of the Revenue in ITA No. 5342/Del/2018 to its original file, accordingly, the M.A No. 204/Del/2021 is allowed. ITA No. 534/Del/2018 6. Since the Assessee has opted for the VSV Scheme and the Department has issued Form No. 5 i.e. order for full and final settlement of tax arrears u/s 5(2) r.w. Section 6 of the Direct Tax Vivad-se-Vishwas Act, 2020, dated 03/02/2022, the present Appeal filed by the Revenue will not survive. 7. In the result, the Appeal of the Revenue in ITA No. 5342/Del/2018 is dismissed. Order pronounced in the open court on 28th October, 2024 Sd/- Sd/- (S RIFAUR RAHMAN) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 28th October, 2024 R.N, Sr. PS 6 M. A No. 204/Del/2021 & ITA No. 5342/Del/2018 ACIT Vs. Arihant Kumr Jain Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT New Delhi "