Everest Food Products Pvt Ltd (Formerly known as S Narendrakumar and Co.), Mumbai V. CIT-51, Mumbai, Mumbai

ITA 2480/MUM/2023

AI Insights

The case involves Everest Food Products Pvt. Ltd., which appealed against the orders of the Ld CIT(A)-51, Mumbai, concerning the assessment years 2013-14 to 2016-17. The appeals were related to the additions made during the assessments, which were initially completed under section 143(3) of the Income Tax Act. Following a search and seizure operation under section 132 of the Act, subsequent assessments for AY 2014-15 to 2016-17 were completed under section 143(3) read with section 153A, and for AY 2013-14 under section 143(3) read with section 147. The assessee had opted for the Vivad Se Vishwas Scheme for the original assessments but not for the additions made due to the search assessments. The Tribunal found that the Ld CIT(A) had erred in assuming that the disputes from the search assessments were also settled under the scheme, leading to the restoration of the issues to the Ld CIT(A) for a decision on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123988 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 16-10-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 12-07-2023
• Laws Referred To: Direct Tax Vivad Se Vishwas Act, 2020, Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 132; 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI ‘E’ BENCH, MUMBAI. Before Shri B.R. Baskaran (AM) & Shri Rahul Chaudhary (JM) I.T.A. No. 2479 to 2482/Mum/2023 (A.Y. 2013-14 to 2016-17) Everest Food Products Pvt. Ltd. (formerly known as S. Narendrakumar and Co.) 5 th floor, Krushal Commercial Centre, G.M. Road, Amar Mahal, Chembur (West), Mumbai 400089. PAN : AAFCE8947A Vs. Commissioner of Income Tax-51, Mumbai. (Appellant) (Respondent) Assessee by Shri Paresh Shaparia Department by Shri P.D. Chogule Date of Hearing 17.10.2023 Date of Pronouncement 17.10.2023 O R D E R Per B.R.Baskaran (AM) :- All the four appeals filed by the assessee are directed against the orders passed by Ld CIT(A)-51, Mumbai and they relate to the assessment years 2013-14 to 2016-17. The assessee is aggrieved by the decision of Ld CIT(A) in dismissing the appeals on the reasoning that the assessee has opted to settle the disputes under Direct Tax Vivad Se Vishwas Act, 2020. 2. The Ld A.R submitted that the assessing officer has passed two assessment orders in respect of these years. He submitted that the first set of orders were passed u/s 143(3) of the Act, wherein the AO had made 2 ITA Nos. 2479 to 2482/Mum/2023 Everest Food Products Pvt. Ltd. certain additions. Subsequently, the revenue carried out search and seizure operations in the hands of the assessee u/s 132 of the Act on 26.11.2019. Consequent thereto the assessments of the years relating to AY 2014-15 to 2016-17 were completed u/s 143(3) r.w.s 153A of the Act. The assessment of the year relating to AY 2013-14 was completed u/s 143(3) r.w.s 147 of the Act. 3. The Ld A.R submitted that the assessee had settled the dispute relating to the additions made in the original assessment proceedings completed u/s 143(3) of the Act. The assessee has not opted for VSVS scheme for the additions made in the impugned assessments, which have been completed consequent to search operations. However, the Ld CIT(A) has erroneously presumed that the assessee has opted to settle the disputes relating to search assessments. Accordingly, he prayed that all the issues may be restored to the file of Ld CIT(A) for adjudicating them on merits. 4. The Ld D.R did not controvert the submissions made by Ld A.R. 5. Having regard to the submissions made by Ld A.R, we notice that the assessee has not opted to settle the disputes arising out of search assessments under VSVS scheme. Hence, the ld CIT(A) has fell into error in presuming that the disputes arising out of search assessments have been settled under VSVS scheme. The Ld A.R has clarified that the assessee has opted to settle the disputes arising in the original assessment proceedings only under VSVS scheme. Hence, all the issues urged by the assessee in these appeals need to be adjudicated on merits, first by Ld CIT(A). Accordingly, we set aside the orders passed by Ld CIT(A) in all the years under consideration and restore all the issues to his file for adjudicating them on merits. After providing adequate opportunity of being heard to the assessee, the Ld CIT(A) may take appropriate decision in accordance with the law. 3 ITA Nos. 2479 to 2482/Mum/2023 Everest Food Products Pvt. Ltd. 6. In the result, all the appeals of the assessee are treated as allowed for statistical purposes. Pronounced in the open court on 17/10/2023. Sd/- Sd/- (RAHUL CHAUDHARY) (B.R. BASKARAN) Judicial Member Accountant Member Mumbai; Dated : 17/10/2023 SSL Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(Judicial) 4. PCIT 5. DR, ITAT, Mumbai 6. Guard File. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai