DCIT, JAIPUR V. PRAMOD CHAND MAHNOT, JAIPUR

ITA 162/JPR/2023

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A) which had deleted additions made under sections 68 and 69C of the Income Tax Act, 1961, concerning alleged bogus Long Term Capital Gains (LTCG) and related commission. The assessee, Shri Pramod Chand Mahnot, contested the reopening of his case under Section 147 and the issuance of notice under Section 148 without proper sanction under Section 151. The assessee also challenged the use of Section 148 instead of Section 153C for reopening the case. During the proceedings, the assessee decided to settle the dispute under the Vivad Se Vishwas Scheme, 2024, leading to the withdrawal of his cross objection.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 39702 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUP SINGH
• Assessee Lawyers: ROHAN SOGANI
• Keywords: Condonation of delay; Reassessment proceedings; Accommodation entries; Earning of tax free income; Bogus
• Section: 147; 148; 68; 69C; 153C

Judgement Text

" vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 162/JP/2023 fu/kZkj.k o\"kZ@Assessment Year : 2012-13 The DCIT Circle-5 Jaipur cuke Vs. Shri Pramod Chand Mahnot C-345, Hans Marg, Malviya Nagar, Jaipur 302 017 (Raj) LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAPPM 5898 M vihykFkhZ@Appellant izR;FkhZ@Respondent C.O. No. 5/JP/2023 (Arising out of vk;dj vihy la-@ITA No. 162/JP/2023) fu/kZkj.k o\"kZ@Assessment Year : 2012-13 Shri Pramod Chand Mahnot C-345, Hans Marg, Malviya Nagar, Jaipur 302 017 (Raj) cuke Vs. The DCIT Circle-5 Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAPPM 5898 M vihykFkhZ@Appellant izR;FkhZ@Respondent jktLo dh vksj ls@Revenue by: Shri Anup Singh, Addl. CIT-DR fu/kZkfjrh dh vksj ls@Assessee by : Shri Rohan Sogani, CA lquokbZ dh rkjh[k@Date of Hearing : 04 /03/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 05 /03/2025 vkns'k@ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM This appeal filed by the Revenue is directed against the order of the ld. CIT(A) dated 30-01-2023, National Faceless Appeal Centre, Delhi [ hereinafter 2 ITA NO. 162/JP/2023 DCIT , CIRCLE-6, JAIPUR VS SHRI PRAMOD CHAND MAHNOT, JAIPUR referred to as (NFAC) ] for the assessment year 2012-13. The assessee has also filed the cross objection. 2. The grounds of appeal raised by the Department in its appeal are as under:- ‘’1. Whether on the facts and circumstances of the case the ld. CIT(A) has erred in deleting addition made u/s 68 by AO amounting to Rs.19,79,235/- on account of bogus LTCG for acquiring accommodation entries claimed by the assessee as exempt income u/s 10(38) of the Act. 2. Whether on the facts and circumstances of the case the ld. CIT(A) has erred in deleting addition made u/s 68 by AO amounting to Rs.3,39,585/- u/s 69C on account of commission paid availing bogus ssssssssssssLTCG.’’ 3. The grounds of appeal raised by the Assessee in its C.O. are as under:- ‘’1. In the facts and circumstances of the case and in law, ld. CIT(A)/National Faceless Appeal Center (NFAC) has erred in, confirming the action of the ld. AO in reopening the case of the assessee under Section 147 of the Income Tax Act, 1961. The action of ld. CIT(A)/NFAC is illegal, unjustified, arbitrary and against the facts of the case and without jurisdiction. Relief may be please be granted by quashing the entire reassessment proceedings initiated by the Id. AO and confirmed by the id CIT(A)/NFAC 2. In the facts and circumstances of the case and in law, ld. CIT(A)/NFAC has erred in confirming the action of the ld. AO in issuing notice under Section 148 of the Income Tax Act, 1961 without obtaining proper sanction under Section 151 of the Income Tax Act, 1961. The action of ld. CIT(A)/NFAC is illegal, unjustified, arbitrary and against the facts of the case and without jurisdiction. Relief may be please be granted by 3 ITA NO. 162/JP/2023 DCIT , CIRCLE-6, JAIPUR VS SHRI PRAMOD CHAND MAHNOT, JAIPUR quashing the entire reassessment proceedings initiated by the ld. AO and confirmed by the ld. CIT(A)/NFAC 3. In the facts and circumstances of the case and in law, Id. CIT(A)/NPAC has erred in. confirming the action of the Id. AO in reopening the case of the assessee u/s 148 of Income Tax Act, 1961 instead of taking recourse to section 153C of the Income Tax Act, 1961. The action of Id. CIT(A)/NFAC is illegal, unjustified, arbitrary and against the facts of the case and without jurisdiction. Relief may be please be granted by quashing the entire reassessment proceedings initiated by the ld. AO and confirmed by the ld. CIT(A)/NFAC 4.1 At the outset of the hearing of the C.O. the Bench noted there is delay of 60 days in filing the appeal by the assessee for which the assessee has not filed an application for condonation of delay 4.2 On the other hand, the ld. DR submitted that the Court may decide the issue as deemed fit and proper in the case. 4.3 After hearing both the parties and perusing the materials available on record, the Bench noticed that the assessee has not filed any application for condonation of delay which indicates that the assessee is lethargic in timely filing the appeal before ITAT and thus the assessee is warned to be careful in future for timely filing the appeal before the ITAT and thus the appeal is heard on merit of the case. 4 ITA NO. 162/JP/2023 DCIT , CIRCLE-6, JAIPUR VS SHRI PRAMOD CHAND MAHNOT, JAIPUR 5.1 During the course of hearing, the ld. AR of the assessee has prayed for withdrawal of the C.O. on the ground as under:- ‘’The assessee respectfully submits that he has opted to resolve the matter under the VivadSe Vishwas Scheme, 2024 introduced in Budget,2024. In furtherance of this, the assessee has already filed Form 1 under the scheme and attached the requisite form for the Hon’ble Bench reference.’’ The ld.AR of the assesee also prayed that though the assessee filed application for Vivad Se Vishwas Scheme 2024 yet in case of another reasons the dispute is not settled in Vivad Se Vishwas Scheme 2024, the assessee shall be at liberty to apply for restoration of the C.O. in accordance with law 5.2 On the other hand, the ld. DR did not raise any objection to the submissions made by the ld. AR of the assessee before the Bench. 5.3 After hearing both the parties and perusing the materials available on record, it is found that the assessee is himself interested in withdrawing the C.O. by settling the dispute, under Vivad Se Vishwas Scheme 2024, for which the assessee has already filed Form -1 under the Scheme. Hence, we allow the withdrawal of the C.O. by the assessee on above count. 6.1 As regards the appeal of the Department, we also note that the Scheme provides Settlement of the C.O. of the assessee as well as appeal of the Revenue. 5 ITA NO. 162/JP/2023 DCIT , CIRCLE-6, JAIPUR VS SHRI PRAMOD CHAND MAHNOT, JAIPUR However, as contended by the ld.DR that if dispute is not settled the Revenue may also have liberty to apply for restoration of the appeal in accordance with law 7. In the result, the appeal of the Department and C.O. of the assessee are dismissed as indicated hereinabove Order pronounced in the Open Court on 05-03-2025. Sd/- Sd/- ¼ Mk0 ,l- lhrky{eh ½ ¼ jkBksM deys'k t;UrHkkbZ ½ (Dr. S. Seethalakshmi) (Rathod Kamlesh Jayantbhai) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 05/03/2025 *Mishra vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- The DCIT. Circle -6,Jaipur ,. 2. izR;FkhZ@ The Respondent- Shri Pramod Chand Mahnot, Jaipur 3. vk;dj vk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZ QkbZy@ Guard File (ITA No. 162 & CO No. 5/JP/2023) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar "