M/s NSI (India) Ltd., Howrah V. DCIT, Cir. 1(1), Kolkata

ITA 265/KOL/2022

AI Insights

The case involves M/s. NSI (India) Ltd., the appellant, who had opted for the Vivad Se Vishwas Scheme to settle their tax disputes for the assessment year 2012-13. The assessee had initially filed an appeal which was pending before the CIT(A). However, after opting for the Vivad Se Vishwas Scheme and settling the tax arrears, the assessee submitted a withdrawal of the appeal. Despite this, the CIT(A) dismissed the appeal without considering the withdrawal. The assessee then filed an appeal with the Income Tax Appellate Tribunal, which led to the setting aside of the CIT(A)'s order and the acceptance of the appeal withdrawal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 108581 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 10-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 16-05-2022
• Laws Referred To: Income-tax Act, 1961, Direct Tax Vivad Se Vishwas Act, 2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ISSUING FORM REFERRED
• Keywords: Set aside
• Section: 6; 5(2)

Judgement Text

1 ITA No. 265/Kol/2022 M/s. NSI (India) Ltd., AY 2012-13 IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH KOLKATA आयकर अपीलीय अधीकरण, ᭠यायपीठ “C” कोलकाता, BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.265/Kol/2022 Assessment Year: 2012-13 M/s. NSI (India) Ltd., Beltala, Chamrail, Howrah- 711114, West Bengal. (PAN: AAACN9225B) Vs. Deputy Commissioner of Income Tax, Circle-1(1), Kolkata. (Appellant) (Respondent) Present for: Appellant by : Shri Piyush Lakhotia, Advocate Respondent by : Shri G. Hukugha Sema, CIT Date of Hearing : 11.01.2023 Date of Pronouncement : 17.01.2023 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide Order No. ITBA/NFAC/S/250/2021-22/1040894101(1) dated 16.03.2022 passed against the assessment order by DCIT, Circle-3(1), Kolkata u/s. 147/143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 18.12.2019. 2. Shri Piyush Lakhotia, Advocate appeared for the assessee and G. Hukugha Sema, CIT appeared on behalf of the revenue. 3. Grounds taken by the assessee are reproduced as under: 2 ITA No. 265/Kol/2022 M/s. NSI (India) Ltd., AY 2012-13 “1. For that the Ld. CIT(A) erred in dismissing the appeal when the assessee has already opted for Vivad Se Vishwas Scheme, the appeal was withdrawn and the dispute was settled. 2. for that the action of the CIT(A) in confirming the addition made by AO may kindly be deleted and relief be provided to the assessee.” 4. Brief facts of the case are that assessee had opted for Vivad Se Vishwas Scheme and had withdrawn its appeal which was pending before the Ld. CIT(A). Assessee had made a submission on 19.03.2021 before the Ld. CIT(A) vide Acknowledgment No. 19032114497409 wherein the response submitted by it stated that assessee is withdrawing its appeal. Response submitted by the assessee before the Ld. CIT(A) is extracted as under: “Good Evening Sir. Greetings from NSI India Limited Subject - Withdrawal of appeal. Appellant participated under Vivad Se Viswas Scheme and Filed Form 1 and 2 on 30.11.2020. The same had been accepted and the Learned PCIT-I, Kolkata has Issued Form 3 on 04.02.2021 in this regard. Both Forms arc enclosed for your perusal. Accordingly, appellant is withdrawing this appeal. In view of above, you are requested to close the proceedings and issue a confirmation letter in this regard, if any, at your earliest. With regards. NSI India Ltd.” 5. Ld. Counsel submitted that without considering this response which was furnished in the course of first appellate proceeding, Ld. CIT(A) proceeded to dismiss the appeal of the assessee by passing the order dated 16.03.2022 which compelled the assessee for filing the present appeal before the Tribunal. Ld. Counsel also referred to Form 5 issued as “order for full and final settlement of tax arrear” u/s. 5(2) read with section 6 of the Direct Tax Vivad Se Vishwas Act, 2020 (3 of 2020) The Direct Tax Vivad Se Vishwas Rules, 2020 dated 22.12.2021. 6. Ld. Counsel thus, contended that department has accepted its application under the Vivad Se Vishwas Scheme since assessee has paid the tax towards full and final settlement of tax arrears. Considering the facts on record as stated above wherein assessee has 3 ITA No. 265/Kol/2022 M/s. NSI (India) Ltd., AY 2012-13 deposited the amount of tax arrear as full and final settlement which has been accepted by the department by issuing Form 5 referred above, we allow the ground no. 1 of the assessee to hold that the appeal is withdrawn since the dispute is settled in the Direct Tax Vivad Se Vishwas Act, 2020. Accordingly, the impugned order of Ld. CIT(A) is set aside. 7. In the result, the appeal of the assessee is allowed as withdrawn under the Vivad Se Vishwas Scheme. Order is pronounced in the open court on 17th January, 2023. Sd/- Sd/- (Rajpal Yadav) (Girish Agrawal) Vide President Accountant Member Dated: 17 th January, 2023 JD, Sr. P.S. Copy to: 1. The Appellant: 2. The Respondent. 3. CIT(A), NFAC, Delhi 4. The Pr. CIT, 5. DR, ITAT, Kolkata Bench, Kolkata //True Copy// By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata