Harsha Shah, Delhi V. ITO, Ward-59(3), New Delhi

ITA 2934/DEL/2022

AI Insights

The case involves Harsha Shah, the appellant, who contested a penalty imposed by the Income Tax Officer (ITO) under section 270A of the Income Tax Act for the assessment year 2015-16. The penalty was initially upheld by the Commissioner of Income Tax (Appeals), which led to the filing of this appeal. The primary contention was that the penalty was erroneously imposed despite the assessee's enrollment in the Vivad se Vishwas Scheme, a scheme aimed at resolving tax disputes without penalties. The tribunal's decision hinged on the interpretation of the Vivad se Vishwas Scheme and its applicability to the case, leading to the cancellation of the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121960 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-06-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 14-12-2022
• Other Referred Cases: ITA No. 393/Del/2019
• 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
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B: NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA No.2934/Del/2022 Assessment Year: 2015-16 Harsha Shah, 101, Vikas Marg, Gujarat Vihar, Delhi 110092 PAN AAPPS 0800 B vs. ITO Ward 59(3), Delhi 110002 (Appellant) (Respondent) For Assessee : Shri Nitin Sharma, CA Revenue For : Shri Shankar Gupta, Sr. DR Date of Hearing : 12.06.2023 Date of Pronouncement : 18.07.2023 ORDER PER CHANDRA MOHAN GARG, J.M. This appeal has been filed against the order of NFAC, New Delhi dated 28.10.2022 for AY 2015-16. 2. The grounds of assessee are as follows:- 1. On the facts and circumstances of the case and in law, the Ld. CIT-A has grossly erred, in dismissing appeal of the assessee stating that "Assessee has opted for Vivad se Vishwas Scheme, accordingly such appeal is treated as infructuous as per the Direct Tax Vivad Se Vishwas Act,2020" without appreciating the facts that assessee has opted for Vivad se Vishwas Scheme and in such a case no penalty shall be levied on the assessee, however, Ld. AO ignoring such facts passed order imposing penalty on the assessee and Ld. CIT-A has dismissed the appeal without going through the ground of appeal and providing any opportunity of being heard to the assessee. 2. On the facts and circumstances of the case, the penalty order passed under section 270A of the Act is time barred and passed without apricating the statutory time limit prescribed under section 275 of the Act and therefore such order is erroneous and bad in law. 3. The ld. counsel of assessee submitted that the Ld. CIT-A has grossly erred, in dismissing appeal of the assessee stating that "Assessee has opted for Vivad se Vishwas Scheme, accordingly such appeal is treated as infructuous as per the Direct Tax Vivad Se Vishwas Act,2020" without appreciating the facts that assessee has opted for Vivad ITA No. 2934/Del/2022 2 se Vishwas Scheme and in such a case no penalty shall be levied on the assessee, however, Ld. AO ignoring such facts passed order imposing penalty on the assessee and Ld. CIT-A has dismissed the appeal without going through the ground of appeal and providing any opportunity of being heard to the assessee. He further submitted that therefore penalty may kindly be cancelled. 4. Replying to the above, the ld. Senior DR supported the order of the authorities below. However, he did not controvert that the coordinate bench of ITAT Delhi by order dated 25.01.2021 in ITA No. 393/Del/2019 for same AY 2015-16 has dismissed appeal of assessee as withdrawn under Vivad se Vishwas Scheme 2020. Therefore, when the matter has been settled under said scheme then no penalty is leviable on the assessee u/s. 271(1)(c) of the Act and hence the penalty is cancelled only on this count. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 18.07.2023. Sd/- Sd/- (PRADIP KUMAR KEDIA) (CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 18 th July, 2023. NV/- Copy forwarded to : 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR // By Order // Asstt. Registrar, ITAT, New Delhi