Jindal Fibers, Panipat V. ACIT, Panipat

ITA 6730/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8146 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 12-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘C’ : NEW DELHI) BEFORE SH. SHAMIM YAHYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.6730/Del/2019, A.Y. 2012-13 M/s. Jindal Fibres E-I, Industrial Area Panipat Vs. Asstt. Commissioner of Income Tax, Panipat Circle, Panipat (APPELLANT) (RESPONDENT) Assessee by Sh. Deepesh Garg, Adv. Revenue by Shri Anuj Garg, Sr. DR Date of hearing: 08.09.2022 Date of Pronouncement: 12.09.2022 ORDER PER ANUBHAV SHARMA, JM: The assessee has filed the present appeal against the order dated 12.06.2019 in regard to assessment year 2012-13 passed by Commissioner of Income Tax (Appeals)- Karnal whereby the penalty order dated 29.03.2018 passed u/s 271(1)(c) of the Income Tax Act, 1961 by ACIT, Panipat Circle, Panipat levying penalty of Rs. 4,70,848/- was upheld. ITA No. 6730/Del/2019 M/s. Jindal Fibres 2 2. As the case was called for hearing, submission was made that the quantum appeal ITA no. 1995/Del/2017 has been dismissed, consequent to the settlement arrived by the assessee under the Direct Tax Vivad Se Viswas Act, 2020. It is settled proposition of law now that once quantum appeal is settled under the VSVS, the penalty appeal unless specifically not covered also deserves to be allowed. The aforesaid factual matrix is not disputed by the learned DR. 3. In this connection, the Bench can refer specifically to Question No. 8 and 34 of the clarifications issued by the CBDT on provisions of The Direct Tax Vivad Se Vishwas Act, 2020 vide Circular No. 9/2020 dated which is reproduced as below; “Que 8. Imagine a case where an appellant desires to settle concealment penalty appeal pending before CIT (A), while continuing to litigate quantum appeal that has travelled to higher appellate forum. Considering these are two independent and different appeals, whether appellant can settle olle to exclusion of others? If yes, whether settlement of penalty appeal will have any impact on quantum appeal? Ans 8. If both quantum appeal covering disputed tax and appeal against penalty levied on such disputed tax for an assessment year are pending, the declarant is required to file a declaration form covering both disputed tax appeal and penalty appeal. However, he would be required to pay relevant percentage of disputed tax only. Further, it would not be possible for the appellant to apply for settlement of penalty appeal only when the appeal on disputed tax related to such penalty is still pending” ITA No. 6730/Del/2019 M/s. Jindal Fibres 3 “Que 34 Appeals against assessment order and against penalty order are filed separately on same issue. Hence there are separate appeals for both. In such a case how disputed tax is to be calculated? Ans. Please see question no. 8. Further, it is clarified that if the appellant has both appeal against assessment order and appeal against penalty relating to same assessment pending for the same assessment year, and he wishes to settle the appeal against assessment order (with penalty appeal automatically covered), he is required to indicate both appeals in one declaration form (Form No I) for that year.” 4. In the light of aforesaid, the appeal in hand is allowed. However, in case the final settlement under the VSVS is set aside or abates, the Revenue can get the appeal restored for hearing. Order pronounced in the open court on 12 th September, 2022. Sd/- Sd/- (SHAMIM YAHYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 12 th .09.2022 *Binita, SR.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI