DCIT CEN CIR 36, MUMBAI V. AKRUTI KAILASH CONSTRUCITON, MUMBAI

ITA 2513/MUM/2013

AI Insights

The case involves the Deputy Commissioner of Income Tax, Central Circle-36, Mumbai as the appellant and Akruti Kailash Construction as the respondent. The dispute arose from an assessment order under section 143(3) of the Income-tax Act, 1961, which assessed capital gains amounting to Rs.21,75,15,467 in the hands of the assessee for the Assessment Year 2009-10. The CIT(A) had earlier deleted this addition, leading to the Revenue's appeal. The key legal issues revolved around the application of section 45(4) of the Income-tax Act concerning the transfer of capital assets and the implications of the 'Vivad Se Vishwas Scheme-2024' opted by the assessee to settle the dispute.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717631 (ITAT-MUMBAI)
• Duration Of Justice: 12 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 02-04-2013
• Other Referred Cases: Gurunath Talkies, [226 (CTR) 474 (Kar)]
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital Gains
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH MUMBAI BEFORE SHRI SAKTIJIT DEY, HON'BLE VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 2513/MUM/2013 Assessment Year: 2009-10 Deputy Commissioner of Income Tax, Central Circle-36, Mumbai Vs. Akruti Kailash Construciton 6th Floor, Akruti Trade Centre, Rd No. 7 Marol Midc Andheri (E), Mumbai – 400093 (PAN: AAEFA9859K) (Appellant) (Respondent) Present for: Assessee : Shri Jayeshkumar Jain, CA Revenue : Shri Surendra Mohan, Sr. DR Date of Hearing : 11.08.2025 Date of Pronouncement : 14.08.2025 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the Revenue is against the order of Ld. CIT(A)- 41, Mumbai, vide order no. CIT(A)-41/DCC-36/IT-104/11-12, dated 02.01.2013, passed against the assessment order by Deputy Commissioner of Income-tax, Central Circle-36, Mumbai, u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 29.03.2011, for Assessment Year 2009-10. Printed from counselvise.com 2 ITA No.2513/Mum/2013 Akruti Kailash Construction Assessment Year 2009-10 2. Grounds taken by the Revenue are reproduced as under: “1. Whether on the facts and in the circumstances of the case the Ld. CIT(A) was right in deleting the addition made by A.O u/s 45(4) of the L.T. Act, 1961 of long term capital gain of Rs 21,75,15,467/- in the hands of the assessee firm on account of the payment made to the retiring partners. 2. Whether on the facts and in the circumstances of the case the Ld. CIT(A) erred in not holding that colourable device has been adopted by the assessee firm in permitting the old partners to retire from the firm by receiving a consideration amount of Rs. 21.45 crores would amount to transfer attracting capital gain. 3. Whether on the facts and in the circumstances of the case the Ld. CIT(A) erred in differentiating the facts of the assessee and the facts in case of Gurunath Talkies, [226 (CTR) 474 (Kar)]..” 3. Brief facts of the case are that assessment was completed by assessing capital gains u/s.45(4) of the Act amounting to Rs.21,75,15,467/- in the hands of the assessee. Aggrieved, assessee filed an appeal before the ld. CIT(A) on 23.04.2011, who deleted the same. Aggrieved, Revenue is in appeal before the Tribunal. 4. At the outset, we note that assessee placed on record Form-1, dated 28.01.2025, wherein it opted to resolve the dispute in this appeal under ‘Vivad Se Vishwas Scheme-2024’ (VSV, 2024 scheme). Form – 3, dated 06.08.2025 for deposit of amount required under the VSV Scheme of Rs.2,71,08,953/- alongwith its challan is also placed on record. 5. Considering these facts on record and assessee having paid the demand as required under the said scheme, we find it appropriate to dismiss the appeal as withdrawn, pursuant to the option availed by assessee for resolving the dispute in this appeal under VSV, 2024. Accordingly, appeal of the revenue is dismissed with a liberty to Printed from counselvise.com 3 ITA No.2513/Mum/2013 Akruti Kailash Construction Assessment Year 2009-10 restore/revive the appeal, in case the application for ‘Vivad Se Vishwas Scheme-2024’ do not materialize or is not accepted by the department. 6. In the result, appeal of the revenue is dismissed as withdrawn. Order is pronounced in the open court on 14 August, 2025 Sd/- Sd/- (Saktijit Dey) (Girish Agrawal) Vice President Accountant Member Dated: 14 August, 2025 MP, Sr.P.S. Copy to : 1 The Appellant 2 The Respondent 3 DR, ITAT, Mumbai 4 5 Guard File CIT BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai Printed from counselvise.com "