JAI BHARAT GUM & CHEMICALS LTD.,BHIWANI V. DCIT, CENTRAL CIRCLE, KARNAL

MA 363/DEL/2025

AI Insights

The case involves Jai Bharat Gum & Chemicals Ltd, the applicant, and the DCIT, Central Circle-2, Karnal, the respondent. The dispute originated from a penalty levied under section 271AAB of the Income Tax Act, 1961, which the assessee contested. Initially, the penalty was reduced by the CIT(A), but both parties appealed to the ITAT. The assessee sought to settle the dispute under the VSVS Scheme, which was partially accepted by the department but rejected concerning the CO. This led to a writ petition in the High Court, which stayed the ITAT proceedings. The ITAT, considering the High Court's stay and the ongoing writ petition, decided to recall the CO and adjourn it until the High Court's decision.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 843394 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 30-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘C’ NEW DELHI BEFORE SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER M.A. 363/Del/2025 (Arising out of CO No. 59/Del/2020) (in ITA No. 7729/Del/2019) Assessment Year: 2014-15 Jai Bharat Gum & Chemicals Ltd, Bhiwani Ward-2, Siwani Mandi Distt. Bhiwani-127046 PAN: AAACJ2998M Vs. DCIT, Central Circle-2, Karnal (Applicant) (Respondent) ORDER PER S RIFAUR RAHMAN, AM: This present Miscellaneous Application is filed by the Assessee with the prayer to recall and retained order dated 28.04.2025 in which dismissing the Cross Objection as infructuous. 2. At the time of hearing, Ld. AR of the assessee brought to our notice that the Assessing officer (‘AO’) had levied penalty u/s 271AAB of the Income Tax Act, 1961 (for short ‘the Act’) @ 30%. The assessee preferred an appeal Applicant by Sh. K. Sampat, Advocate Sh. V. Rajkumar, Advocate Respondent by Ms. Harpreet Kaur Hansra, Sr. DR Date of hearing 27.02.2026 Date of pronouncement 06.03.2026 Printed from counselvise.com MA No.363/Del/2025 2 before the Ld. CIT(A), who vide order dated 26.12.2017 partly allowed the appeal and sustained the penalty to the extent of 10%. The department filed an appeal against the above said order before the Tribunal vide ITA No. 7729/Del/2017. The assessee also filed a Cross Objections against the said department appeal, registered as CO No. 59/Del/2020. With regard to the department appeal, the assessee opted to settle the dispute under the VSVS Scheme by filing Form No. 1, seeking settlement of both the departmental appeal and the CO. While the department accepted the settlement in respect of the departmental appeal, it rejected the settlement request pertaining to cross objection. 3. Aggrieved with the above, the assessee filed a writ petition before the Hon’ble High Court. The Hon’ble High Court directed the department to pass a speaking order and also stayed the proceeding before the ITAT and the same is pending for final disposal. He submitted that the co-ordinate bench has dismissed the CO, in the light of the material on record as infructuous. In this regard, he brought to our notice, order of the Hon’ble High Court which is placed on record wherein the Hon’ble High Court has stayed the proceedings till further orders and he prayed that the CO may be recalled. 5. On the other hand, the Ld. DR for the Revenue has no objection to follow the directions of the High Court. Printed from counselvise.com MA No.363/Del/2025 3 6. Considered the rival submissions and material placed on record, we observed that the cross objection filed by the assessee was disposed off as infructuous for the reason that connected departmental appeal had already disposed of. However, as per the fact brought to our notice by the Ld. AR, the dispute is relating to acceptance of settlement under VSV Scheme with regard to the pending cross objection, which was rejected by the department. Against the above issue, assessee filed writ petition before the Hon’ble High Court and Hon’ble High Court has stayed the proceedings until further notice. With the above observation, we are inclined to recall the CO and direct the registry to keep the above CO as adjourned sine die until the disposal of the writ petition by the Hon’ble High Court. 7. In the result, the MA filed by the assessee is allowed. Order pronounced in open Court on 06.03.2026. Sd/- Sd/- (ANUBHAV SHARMA) (S.RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06.03.2026. Binita, Sr.PS Copy forwarded to the: 1. Appellant 2. Respondent 3. CIT/PCIT 4. CIT(A) 5. Sr. DR, New Delhi Asstt. Registrar ITAT, New Delhi Printed from counselvise.com "