Prakash Murarka L/H Late Suraj Mal Murarka , Raebareli V. Income Tax Officer, ward-1, Raebareli

ITA 204/LKW/2023

AI Insights

The case involves an appeal by Prakash Murarka against a penalty imposed by the Income Tax Officer, Ward-1, Raebareli, which was confirmed by the National Faceless Appeal Centre (NFAC), Delhi. The penalty was related to an addition made during the assessment for the year 2011-12 under section 143(3) of the Income Tax Act, 1961. The assessee had opted for the Direct Tax Vivad Se Vishwas Act, 2020, which led to a settlement of the tax dues, as evidenced by Form-5. Both parties agreed that the penalty should be deleted following the settlement under the Vivad Se Vishwas Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123021 (ITAT-LUCKNOW)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 17-10-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 29-06-2023
• Laws Referred To: Income Tax Act, 1961, Direct Tax Vivad Se Vishwas Act, 2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 143(3); 5(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No.204/Lkw/2023 Assessment Year: 2011-12 Prakash Murarka L/H of Late Suraj Mal Murarka, 172/15, Beliganj, Raebareli- 229001 PAN: AEFPM 7119D Vs. Income Tax Officer, Ward-1, Raebareli (U.P.), N.F.A.C., Delhi (Appellant) (Respondent) O R D E R PER SUDHANSHU SRIVASTAVA, J.M.: This appeal has been preferred by the assessee against the order dated 12.05.2023 passed by the National Faceless Appeal Centre, (NFAC), Delhi for Assessment Year 2011-12. 2. The brief facts of the case are that the assessment in this case was completed u/s. 143(3) of the Income Tax Act, 1961 (hereinafter called the ‘Act’) at an income of Rs.50,19,000/- after making an addition of Rs.48,60,570/-. Subsequently, penalty u/s. 271(1)(c) of the Act to the tune of Rs.14,35,759/- Appellant by Shri P.K. Kapoor, CA Respondent by Shri Sanjeev Krishna Sharma, Addl. CIT (DR) Date of hearing 18/10/2023 Date of pronouncement 31/10/2023 I.T.A. No.204/Lkw/2023 2 was also imposed. It is the submission of the ld. Authorized Representative that since the designated authority, namely, the ld. Principal Commissioner of Income Tax, Gorakhpur has already issued Form-5 bearing Acknowledgement No. 298540531260623 dated 26.06.2023 under the Direct Tax Vivad Se Vishwas Act, 2020 in respect of the quantum addition made, no penalty u/s. 271(1)(c) of the Act was imposable. Our attention was drawn to the copy of the above said Form-5 and it was submitted that this order was full and final settlement of the tax arrears with reference to the quantum addition made. A copy of the assessment order dated 25.03.2014 as well as the copy of order giving effect to Form-5 issued u/s. 5(2) r.w.s. 6 of the Direct Tax Vivad Se Vishwas Act, 2020 was also placed on record in support of the prayer. Our attention was also drawn to the order dated 16.08.2023 giving effect to Form-5 and it was submitted that no tax was now payable by the assessee. It was prayed that, accordingly, penalty u/s. 271(1)(c) as confirmed by the NFAC ought to be deleted. 3. Per contra, the ld. Senior Departmental Representative fully agreed with the submissions made by the ld. Authorized Representative. I.T.A. No.204/Lkw/2023 3 4. We have heard the rival submissions and have also perused the material on record. We agree with the contention of the ld. Authorized Representative that since the assessee has opted for settlement of tax dues in the quantum proceedings under the Direct Tax Vivad Se Vishwas Act, 2020 and Form-5 has since been issued by the designated authority and also order giving effect to Form-5 has been passed by the Assessing Officer showing that no further tax is payable by the assessee, the impugned penalty imposed u/s. 271(1)(c) of the Act does not survive. Accordingly, we order deletion of the said penalty. 5. In the final result, the appeal of the assessee stands allowed. (Order pronounced in the open court on 31/10/2023) Sd/- Sd/- ( ANADEE NATH MISSHRA ) (SUDHANSHU SRIVASTAVA) Accountant Member Judicial Member Dated: 31/10/2023 Aks I.T.A. No.204/Lkw/2023 4 Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. The CIT(A) 5. D.R., I.T.A.T., Lucknow Asstt. Registrar