SHREEYAN POWER AND STEEL INDUSTRIES LTD., MUMBAI V. DCIT, CIR-3(3)(1), MUMBAI

ITA 394/MUM/2023

AI Insights

The case involves Shreeyam Power and Steel Industries Ltd., the appellant, contesting an order from the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, which dismissed their appeal against a reassessment order under section 147 of the Income Tax Act, 1961. The dismissal was based on the assumption that the appellant had opted for the Direct Tax Vivad Se Vishwas Scheme, which was not applicable to the appeal in question. The Tribunal found that the CIT(A) had erred in this assumption and thus set aside the CIT(A)'s order and remanded the case for fresh consideration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123615 (ITAT-NA)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: Mumbai
• Next Hearing Date: 19-04-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 09-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HARSH BAFNA
• Keywords: Principle of natural justice; Set aside
• Section: 147; 143(3); 5(2); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI NARENDER KUMAR CHOUDHRY (JUDICIAL MEMBER) ITA No. 394/MUM/2023 Assessment Year: 2014-15 Shreeyam Power and Steel Industries Ltd., 621, Tulsiani Chambers, Nariman Point, Mumbai-400021. Vs. Dy. CIT, Circle-3(3)(1), Room No. 609, 6 th floor, Aayakar Bhavan, Maharshi Karve Road, Mumbai-400020. PAN No. AAACM 7130 L Appellant Respondent Assessee by : Mr. Harsh Bafna, AR Revenue by : Mr. Anil Sant, DR Date of Hearing : 20/04/2023 Date of pronouncement : 26/04/2023 ORDER PER OM PRAKASH KANT, AM This appeal has been preferred by the assessee against the order dated 14.12.2022 passed by the Ld. Commissioner of Income- tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2014-15 in relation to the reassessment order passed by the Assessing Officer u/s 147 of the Income-tax Act, 1961 (in short ‘the Act’). The grounds raised by the assessee are reproduced as under: 1. On the facts and in the circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals), National Faceless App erred in passing the order u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as the Act] dismissing the appeal without granting opportunity of hearing to the Appellant during the course of ap Your Appellant submits that the order of CIT(A) issued u/s 250 of the Act dated 14 December 2022is passed without following the principle of natural justice and therefore the order of the CIT(A)ought to be quashed. 2. On the facts and in the circumstances of the case and in law, the CIT(A) erred in dismissing theappeal filed against the Assessment Order issued u/s. 147 .w.s. 144B of the Act as withdrawn under the Direct Tax Vivad se Vishwas Act, 2020 (VS) without app under VS was sought in respect of this appeal by the Appellant. Your Appellant submits that dispute resolution under VS was sought in respect of appeal filedagainst the order issued w/s 143(3) of the Act for whi July2022 was issued, pursuant to which the learned CIT(A) order dated 07 September 2022 was passeddismissing the said appeal. Your Appellant submits that the order of CIT(A) issued w/s 250 of the Act dated 14 Decembe of the Act and the same must be remanded for adjudication on the factsand merits of the case. 2. We have heard rival submission of the parties on the issued in-dispute and perused the relevant material on record. We find that the Ld. CIT(A) has dismissed the appeal of the assessee under the impression that the assessee opted for Vishwas Scheme, 2020 relevant finding of the Ld. CIT(A) is reproduced as Shreeyam Power and Steel Industries Ltd. 1. On the facts and in the circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as CIT(A)] erred in passing the order u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as the Act] dismissing the appeal without granting opportunity of hearing to the Appellant during the course of appeal proceedings. Your Appellant submits that the order of CIT(A) issued u/s 250 of the Act dated 14 December 2022is passed without following the principle of natural justice and therefore the order of the CIT(A)ought to be quashed. 2. On the facts and in the circumstances of the case and in law, the CIT(A) erred in dismissing theappeal filed against the Assessment Order issued u/s. 147 .w.s. 144B of the Act as withdrawn under the Direct Tax Vivad se Vishwas Act, 2020 (VS) without appreciating the fact that no disputeresolution under VS was sought in respect of this appeal by the Appellant. Your Appellant submits that dispute resolution under VS was sought in respect of appeal filedagainst the order issued w/s 143(3) of the Act for which final certificate in Form 5 dated 05 July2022 was issued, pursuant to which the learned CIT(A) order dated 07 September 2022 was passeddismissing the said appeal. Your Appellant submits that the order of CIT(A) issued w/s 250 of the Act dated 14 December 2022is barred by the provisions of the Act and the same must be remanded for adjudication on the factsand merits of the case. We have heard rival submission of the parties on the issued dispute and perused the relevant material on record. We find hat the Ld. CIT(A) has dismissed the appeal of the assessee under the impression that the assessee opted for the “Direct Tax Vivad Se Vishwas Scheme, 2020” in respect the appeal filed before him relevant finding of the Ld. CIT(A) is reproduced as und Shreeyam Power and Steel Industries Ltd. 2 ITA No. 394/M/2023 1. On the facts and in the circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals), National eal Centre, Delhi [hereinafter referred to as CIT(A)] erred in passing the order u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as the Act] dismissing the appeal without granting opportunity of hearing to the Appellant during Your Appellant submits that the order of CIT(A) issued u/s 250 of the Act dated 14 December 2022is passed without following the principle of natural justice and therefore the order of the 2. On the facts and in the circumstances of the case and in law, the CIT(A) erred in dismissing theappeal filed against the Assessment Order issued u/s. 147 .w.s. 144B of the Act as withdrawn under the Direct Tax Vivad se Vishwas Act, 2020 reciating the fact that no disputeresolution under VS was sought in respect of this appeal by the Appellant. Your Appellant submits that dispute resolution under VS was sought in respect of appeal filedagainst the order issued w/s ch final certificate in Form 5 dated 05 July2022 was issued, pursuant to which the learned CIT(A) order dated 07 September 2022 was passeddismissing the Your Appellant submits that the order of CIT(A) issued w/s 250 r 2022is barred by the provisions of the Act and the same must be remanded for adjudication on We have heard rival submission of the parties on the issued- dispute and perused the relevant material on record. We find hat the Ld. CIT(A) has dismissed the appeal of the assessee under Direct Tax Vivad Se ” in respect the appeal filed before him. The under: “During the course of appellate proceedings the appellant opted forDTVSVA 2020 and has filed an application/form regard before the designated authority i.e. PCIT, Gujarat on 12.12.2020. A certificate no. 214410450150121 (form5) dated 15.01.2021 has been issued by the PCIT, Mumbai. The appellant has paid the amount toward the full and final settlement of the tax arrears as determined in the order and VSV order us 5(2) has been issued on 05.07.2022 by the designated authority. In view of the abo DTVSVA 2020, the appeal of the appellant is dismissed as withdrawn due to DTVSVA2020. 3. However, before us, the Ld. Counsel of the assessee submitted that in the case of the assessee completed. Firstly, assessment was completed u/s 143(3) of the Act on 23.12.2016 and against which the assessee preferred appeal before the Ld. CIT(A) which was entered as acknowledgement No. 590017131120117 dated 12.01.2017. The assessee opted “Direct taxes Vivad Se Vishwas Scheme before ld CIT(A) against , the assessee has also filed a Form No. 1 filed by the assessee before the designated authority for opting under Viv Scheme. From the said Form opted is having acknowledgment No. mentioned in Part-B Clause 1 of the Form No. 1 appeal before the Ld. CIT(A) in the present case was arising order u/s 147 of the Act dated 30.03.2022. Therefore, the Ld. CIT(A) has dismissed the appeal of the assessee under wrong impression that the assessee has opted for Vivad Se Vishwas Scheme in respect Shreeyam Power and Steel Industries Ltd. During the course of appellate proceedings the appellant opted forDTVSVA 2020 and has filed an application/form regard before the designated authority i.e. PCIT, Gujarat on 12.12.2020. A certificate no. 214410450150121 (form5) dated 21 has been issued by the PCIT, Mumbai. The appellant has paid the amount toward the full and final settlement of the tax arrears as determined in the order and VSV order us 5(2) has been issued on 05.07.2022 by the designated authority. In view of the above and as per the mandate provided, in the DTVSVA 2020, the appeal of the appellant is dismissed as withdrawn due to DTVSVA2020.” However, before us, the Ld. Counsel of the assessee submitted that in the case of the assessee, two assessments have been assessment was completed u/s 143(3) of the Act on 23.12.2016 and against which the assessee preferred appeal before the Ld. CIT(A) which was entered as acknowledgement No. dated 12.01.2017. The assessee opted Vivad Se Vishwas Scheme” in respect of before ld CIT(A) against assessment u/s 143(3) of the Act. he assessee has also filed a Form No. 1 filed by the assessee before the designated authority for opting under Viv rom the said Form, it is evident that the appeal having acknowledgment No. 590017131120117 B Clause 1 of the Form No. 1 appeal before the Ld. CIT(A) in the present case was arising order u/s 147 of the Act dated 30.03.2022. Therefore, the Ld. CIT(A) has dismissed the appeal of the assessee under wrong impression he assessee has opted for Vivad Se Vishwas Scheme in respect Shreeyam Power and Steel Industries Ltd. 3 ITA No. 394/M/2023 During the course of appellate proceedings the appellant opted forDTVSVA 2020 and has filed an application/form-1 in this regard before the designated authority i.e. PCIT, Gujarat on 12.12.2020. A certificate no. 214410450150121 (form5) dated 21 has been issued by the PCIT, Mumbai. The appellant has paid the amount toward the full and final settlement of the tax arrears as determined in the order and VSV order us 5(2) has been issued on 05.07.2022 by the ve and as per the mandate provided, in the DTVSVA 2020, the appeal of the appellant is dismissed as However, before us, the Ld. Counsel of the assessee submitted two assessments have been assessment was completed u/s 143(3) of the Act on 23.12.2016 and against which the assessee preferred appeal before the Ld. CIT(A) which was entered as acknowledgement No. dated 12.01.2017. The assessee opted the in respect of appeal filed assessment u/s 143(3) of the Act. Before us he assessee has also filed a Form No. 1 filed by the assessee before the designated authority for opting under Vivad Se Vishwas it is evident that the appeal for VSV 590017131120117 as B Clause 1 of the Form No. 1. Whereas, the appeal before the Ld. CIT(A) in the present case was arising out of order u/s 147 of the Act dated 30.03.2022. Therefore, the Ld. CIT(A) has dismissed the appeal of the assessee under wrong impression he assessee has opted for Vivad Se Vishwas Scheme in respect of appeal before him. In view of the above facts, order of the Ld. CIT(A) and restore the matter back to him for deciding afresh after taking into consideration submission of the assessee and pass a reasoned order. The grounds of appeal of the assessee are accordingly allowed for statist 4. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on Sd/ (NARENDER KUMAR CHOUDHRY JUDICIAL MEMBER Mumbai; Dated: 26/04/2023 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Shreeyam Power and Steel Industries Ltd. of appeal before him. In view of the above facts, we set aside the order of the Ld. CIT(A) and restore the matter back to him for deciding afresh after taking into consideration submission of the assessee and pass a reasoned order. The grounds of appeal of the assessee are accordingly allowed for statistical purposes. In the result, the appeal filed by the assessee is allowed for Order pronounced in the open Court on 26/04/2023. Sd/- NARENDER KUMAR CHOUDHRY) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Shreeyam Power and Steel Industries Ltd. 4 ITA No. 394/M/2023 we set aside the order of the Ld. CIT(A) and restore the matter back to him for deciding afresh after taking into consideration submission of the assessee and pass a reasoned order. The grounds of appeal of the ical purposes. In the result, the appeal filed by the assessee is allowed for 04/2023. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai