SPRNG TRANSFORM SUN ENERGY PRIVATE LIMITED, MUMBAI V. NATIONAL FACELESS APPEAL CENTRE , MUMBAI

ITA 2847/MUM/2022

AI Insights

The case involves an appeal by SPRNG Transform Sun Energy P.Ltd against an order passed by the National Faceless Appeal Centre (NFAC), Delhi, concerning a reassessment order for the assessment year 2019-20. The appellant contested that the CIT(A) did not provide a hearing as per the Faceless Appeal Scheme, 2021, and erroneously linked the appeal to another for which the appellant had opted for the Vivad Se Vishwas Scheme (VSVS). The tribunal noted that the CIT(A) had indeed erred in linking the appeals and in dismissing the current appeal without a proper hearing, leading to the decision to restore the appeal for a fresh decision on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299375 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 01-12-2022
• Assessment Year: 2017-2018
• Appeal Filed On: 08-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SOUMENDER KUMAR
• Section: 147; 148; 143(3); 69A; 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JM & SHRI BASKARAN BR, AM आयकरअपीलसं./ I.T.A. No. 2847/Mum/2022 (निर्धारणवर्ा / Assessment Year: 2017-18) SPRNG Transform Sun Energy P.Ltd Shapporji Pallonji Centre, 41/44, Minoo Desai Marg, Colaba, Mumbai 400005 बिधम/ Vs. National Faceless Appeal Centre(NFAC), Delhi स्थायीलेखासं./जीआइआरसं./PAN No. AAFCT3995H (अपीलाथी/Appellant) : (प्रत्यथी / Respondent) अपीलाथीकीओरसे/ Appellant by : None प्रत्यथीकीओरसे/Respondent by : Shri. Soumender Kumar Das सुनवाईकीतारीख/ Date of Hearing : 02.12.2022 घोषणाकीतारीख / Date of Pronouncement : 31.01.2023 आदेश / O R D E R Per Amit Shukla, Judicial Member: The aforesaid appeal has been filed by the assessee against the order dated 06.09.2022, passed by National Faceless Appeal Centre (NFAC), Delhi for the quantum of assessment passed u/s 147 for the AY 2019-20. 2 I . T . A . N o . 2847/ M u m / 2 0 2 2 SPRNG TRANSFORM SUN ENERGY P.LTD 2. In the grounds of appeal Assessee has raised the following grounds:- 1. The learned CIT(A)-NFAC did not provide an opportunity of being heard as per the provisions under Faceless Appeal Scheme, 2021 to the Appellant before passing the order dated 6 September 2022. 2. The learned CIT(A)-NFAC in the order dated 6 September 2022 has inadvertently linked another appeal filed by the Appellant with appeal no. CIT(A)- 8/Mumbai/10239/2019-20 for which the Appellant has exercised the option under Vivad Se Vishwas Scheme (VSVS) on 7 January 2021 and erred in holding that the Appellant had opted for VSVS for the appeal filed before the CIT(A)-NFAC on 24 April 2022 against the reopening assessment order dated 25 March 2022. 3. The learned CIT(A)-NFAC failed to appreciate that VSVS was filed on 7 January 2021 for regular assessment order dated 7 December 2019 whereas the appeal before CIT(A)-NFAC was filed on 24 April 2022 against the reassessment assessment order dated 25 March 2022. While deciding the appeal the learned CIT(A)-NFAC inadvertently missed the point that VSVS was not 3 I . T . A . N o . 2847/ M u m / 2 0 2 2 SPRNG TRANSFORM SUN ENERGY P.LTD applicable as on the date when the order dated 6 September 2022 was passed. 4. The appellant request your honour to restore the order passed by the learned CIT(A)- NFAC dated 6 September 2022 to decide the matter afresh. 5. Without prejudice to the above, the learned CIT(A)-NFAC erred in not deciding the following grounds of appeal filed by the appellant on 24 April 2022. i. The Ld. Assessing Officer (AO) has erred in law and in facts in passing the order u/s. 147 r.w.s. 144 of the Act and determining the income of the appellant at Rs.11,35.58.190/- ii. The Ld. A.O., given the facts and circumstances of the matter, erred in initiating proceedings u/s 148 of the Act, in view of provisions of section 153C of the Act. iii. The Ld. A.O. has erred in law and in facts in reopening the assessment by issuing notice u/s 148 of the Act which is invalid and bad-in-law. iv. The Ld. A.O. has erred in law and in facts in not disposing the objections to the reopening filed by the appellant and hence the jurisdiction assumed by the Ld. A.O. is void ab initio. 4 I . T . A . N o . 2847/ M u m / 2 0 2 2 SPRNG TRANSFORM SUN ENERGY P.LTD v. The Ld. A.O. has erred in law and in facts in passing the assessment order without complying with the principles of natural justice. vi. The Ld. A.O. has erred in law and in facts in making addition u/s 69A r.w.s. 115BBE of the Act amounting to Rs. 11.30,00,000/- on account of unexplained money. 3. From the perusal of the appellate order it is seen that appeal has been dismissed on the following reasons. 2. It is noted that the appellant opted for the Direct Tax Vivad Se Vishwas Scheme vide application dated 07.01.2021. Pursuant thereto, the PCIT, 3, Mumbai has certified the full and final payment of Rs. 112794/- as taxes in terms of Form No.5 dated 11.04.2022. In view of the above, the appeal is treated as in fructuous as sub section 2 of section 4 of the Direct Tax Vivad Se Vishwas Act,2020. 3. Accordingly, the appeal is treated as dismissed for statistical purposes. 4. Before us, the Ld. Counsel submitted that, the Ld. CIT(A) has erred on facts in holding that Assessee has opted VSVS on 7 th Jan 5 I . T . A . N o . 2847/ M u m / 2 0 2 2 SPRNG TRANSFORM SUN ENERGY P.LTD 2021. The VSVS was filed against Appeal for regular assessment order 7 th December 2019 where as the appeal which was filed before NFAC(Delhi) was filed on 24.04.2022 against re-assessment order passed u/s 147 dated 25 th March 2022. Thus, Ld. CIT (A) without giving any opportunity has dismissed the appeal on a wrong assumption of facts. The Ld. DR also admitted the factual position has stated by the Assessee. 5. In view of the aforesaid fact that, firstly, the appellate order has been passed without giving opportunity to the Assessee and more over, the Ld. CIT (A) has erroneously held that Assessee has opted at VSVS in the present appeal whereas, it is factually incorrect, because, Assessee adopted for VSVS against the first appeal filed against original assessment order passed u/s 143(3) dated 07.12.2019. The present appeal was filed against re assessment dated 25 th 2022 passed u/s 147. Therefore, appeal should have been decided on merits. 6. Accordingly, the appeal of the Assessee is restored back to the file of the Ld. CIT(A) to decide the issue afresh and in accordance 6 I . T . A . N o . 2847/ M u m / 2 0 2 2 SPRNG TRANSFORM SUN ENERGY P.LTD with the law on all the grounds raised before him, after giving due and sufficient opportunity being heard to the Assessee. 7. In the Result of the Assessee is allowed for statistical purposes. Orders pronounced in the open court on 31 st Jan, 2023. Sd/- Sd/- (Baskaran BR) (Amit Shukla) Accountant Member Judicial Member मुंबई Mumbai;ददनांक Dated : 31.01.2023 Mrs.Urmila आदेशकीप्रनिनिनिअग्रेनर्ि/Copy of the Order forwarded to : 1. अपीलाथी/ The Appellant 2. प्रत्यथी/ The Respondent 3. आयकरआयुक्त(अपील) / The CIT(A) 4. आयकरआयुक्त/ CIT- concerned 5. दवभागीयप्रदतदनदध, आयकरअपीलीयअदधकरण, मुंबई/ DR, ITAT, Mumbai 6. गार्डफाईल / Guard File आदेशधिुसधर/ BY ORDER, .उि/सहधयकिंजीकधर (Dy./Asstt.Registrar) आयकरअिीिीयअनर्करण, मुंबई/ ITAT, Mumbai