ITO WARD-25(3), New Delhi V. Tinna Finex Ltd., New Delhi

ITA 109/DEL/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 7468 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 05-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Competent authority
• Section: 6; 5(2); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘H’ : NEW DELHI) BEFORE DR. B.R.R. KUMAR, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.109/Del/2020 (Assessment Year : 2012-13) ITO, Ward-25(3), New Delhi Vs. M/s. Tinna Finex Ltd. No. 11, Wood Villa, Bandh Road, Avenue-II, Chandan Haula, New Delhi PAN : AAACT5064C (APPELLANT) (RESPONDENT) Revenue by Shri M. Baranwal, Sr. DR Assessee by Ms. Supriya Mehta, CA Date of hearing: 12.07.2022 Date of Pronouncement: 14.07.2022 ORDER PER ANUBHAV SHARMA, JM: This appeal has been preferred by the Revenue against the appellate order dated 21.10.2019 u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “The Act”) passed by Commissioner of Income Tax (Appeals)- 36, New Delhi being appeal no.CIT(A), Delhi- 36/10111/19-20, Ap. No. 46/2019-20, New Delhi . ITA No. 109/Del/2020 M/s. Tinna Finex Ltd. 2 2. Heard. At the time of hearing, the learned representative for the assessee filed and referred to Form 5 issued by the Competent Authority in terms of Section 5(2) r/w Section 6 of The Direct Tax Vivad Se Vishwas Act, 2020 qua the settling of dispute on quantum in ITA No. 2083/Del/2017; therefore, it is submitted that the present penalty appeal filed by the Revenue, is also liable to be dismissed in view of the settlement of the corresponding quantum appeal under The Direct Tax Vivad Se Vishwas Act, 2020 or in short VSVS. The aforesaid factual matrix is not disputed by the learned DR. 3. In this connection, the Bench can refer specifically to Question No. 8 and 34 of the clarifications issued by the CBDT on provisions of The Direct Tax Vivad Se Vishwas Act, 2020 vide Circular No. 9/2020 dated which is reproduced as below; “Que 8. Imagine a case where an appellant desires to settle concealment penalty appeal pending before CIT (A), while continuing to litigate quantum appeal that has travelled to higher appellate forum. Considering these are two independent and different appeals, whether appellant can settle olle to exclusion of others? If yes, whether settlement of penalty appeal will have any impact on quantum appeal? Ans 8. If both quantum appeal covering disputed tax and appeal against penalty levied on such disputed tax for an assessment year are pending, the declarant is required to file a declaration form covering both disputed tax appeal and penalty appeal. However, he would be required to pay relevant percentage of disputed tax only. Further, it would not be ITA No. 109/Del/2020 M/s. Tinna Finex Ltd. 3 possible for the appellant to apply for settlement of penalty appeal only when the appeal on disputed tax related to such penalty is still pending” “Que 34 Appeals against assessment order and against penalty order are filed separately on same issue. Hence there are separate appeals for both. In such a case how disputed tax is to be calculated? Ans. Please see question no. 8. Further, it is clarified that if the appellant has both appeal against assessment order and appeal against penalty relating to same assessment pending for the same assessment year, and he wishes to settle the appeal against assessment order (with penalty appeal automatically covered), he is required to indicate both appeals in one declaration form (Form No I) for that year.” 4. In the light of aforesaid admitted state of settlement of quantum appeal under VSVS and assuming fulfillment of aforesaid conditions laid down in clarification referred above, the appeal in hand is statistically disposed of as dismissed. Order pronounced in the open court on 14 th July, 2022. Sd/- Sd/- (DR. B.R.R.KUMAR) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 14 th .07.2022 *Binita, SR.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI