Joint Commissioner of Income Tax (OSD), Circle-3, Kanpur V. Smt. Sucheta Wahi, Kanpur

ITA 168/LKW/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9772 (ITAT-LUCKNOW)
• Duration Of Justice: 2 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 25-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Earning of tax free income; Period of limitation; Time period of passing order; Condonation of delay
• Section: 6; 5(2); 268A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA No.168/LKW/2020 Assessment Year: 2014-15 The Jt. CIT (OSD) Circle 3 Kanpur v. Sucheta Wahi 128/636, K Block Kidwai nagar Kanpur TAN/PAN:AAGPW9705N (Appellant) (Respondent) Appellant by: Application of the assessee for withdrawal. Respondent by: Shri Pankaj Sachan, D.R. Date of hearing: 31 05 2022 Date of pronouncement: 07 06 2022 O R D E R PER A.D. JAIN, V.P.: This is Revenue’s appeal against the order of the ld. CIT(A)-I, Kanpur, dated 15.11.2018 for Assessment Year 2015- 16. 2. There is a delay of 382 days in filing of this appeal. The Revenue has filed an application, dated 24.2.2020 for condonation of delay. For the sake of ready reference, the application dated 24.2.2020 is reproduced as below: “Sub.: Request for Condonation of delay in filing of appeal in the case of Smt Sucheta Wahi, 128/636, K-Block, Kidwai Nagar, Kanpur (PAN-AGPW9 705N) for A.Y.2014-15 - Reg. Kindly refer to the above. Page 2 of 4 In this connection, it is submitted that the order of Ld. Commissioner of Income Tax (Appeals)-I, .Kanpur in the case of Smt. Sucheta Wahi for A.Y. 2014-15 has been received in the O/o the Pr. Commissioner of Income Tax-I, Kanpur on 11.12.2018 and therefore, the last date of filing of Departmental appeal before the Hon'ble ITAT was on 09.02.2019. The tax effect in the case is Rs.13,80,412/-. Therefore, the Ld. Pr. Commissioner of Income Tax-I, Kanpur vide letter dated 29.01.2019 had not recommended the proposal for filing of appeal before the Hon'ble ITAT, Lucknow on the ground that the tax effect involved in the case is below the monetary limit prescribed by the Hon'ble CBDT, New Delhi vide instruction no. 03/2018 dated 11.07.2018. In this case also the sale of shares is not a natural phenomenon but an arrangement of dubious design of providing accommodation entry of Long Term Capital Gain to introduce unaccounted own money as exempt income in the form of LTCG on sale of shares. Later on, the CBDT, New Delhi vide circular no. 23 of 2019 dated 06.09.2019 and O.M. dated 16.09.2019 has decided that notwithstanding anything contained in any circular issued u/s 268A specifying monetary limits for filing of departmental appeals before Income Tax Appellate Tribunal (ITAT), High Courts and SLPs/Appeals before the Hon'ble Supreme Court, appeal may be filed on merits as an exception to said circular, where Board, by way, of special order direct filing appeal on merit in cases involved in organized tax evasion activity. In the O.M. dated 16.09.2019 the following instruction has been given: Page 3 of 4 "The undersigned is directed to refer to Circular No. 23 of 2019 dated 6th September, 2019 and to sy that by virtue of powers of the Central Board of Direct Taxes u/s 268A of Income Tax Act, 1961, the monetary limits fixed for filing appeals before ITAT/ HC and SLPs/ appeals before Supreme Court shall not apply in case of assessee claiming bogus LTCG/STCL through penny stocks and appeals! SLPs in such cases shall be filed on merits." Therefore, the delay caused in filing of appeal within the limitation period i.e., 9.2.2019 was beyond control of the undersigned. It is therefore requested to kindly condone the delay in filing of the appeal.” 3. In view of the above facts, we condoned the delay and admitted this appeal for hearing. 4. The assessee has submitted an application dated 7.4.2022, received in the Registry of this Office on 11.4.2022, vide which it has been submitted that the Income Tax Department has passed Order in Form No.5, dated 5.2.2021 under the Vivad Se Vishwas Scheme. The assessee has filed the copy of Form No.5, i.e., the order of the PCIT-1, Kanpur for full and final settlement of tax arrears under section 5(2) read with section 6 of the DTVSVA, 2020, for Assessment Year 2014-15. It was contended that since the assessee has opted for Vivad Se Viswas Scheme and tax payable on the Departmental appeals has been deposited and order for final settlement of tax arrears has been passed by the designated authority, therefore, the appeal filed by the Department may be dismissed as withdrawn. The ld. D. R. has no objection. Accordingly, since order has been passed by the PCIT-1, Kanpur for full and final settlement of tax arrears under Page 4 of 4 section 5(2) read with section 6 of the DTVSVA, 2020, for Assessment Year 2014-15, the appeal of the Department is ordered to be dismissed as withdrawn. 5. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on 07/06/2022. Sd/- Sd/- [T. S. KAPOOR] [A. D. JAIN] ACCOUNTANT MEMBER VICE PRESIDENT DATED:07/06/2022 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR By order Assistant Registrar