M/S. PRICEWATERHOUSECOOPERS PVT. LTD.,KOLKATA V. DCIT, CIRCLE-1(1), KOLKATA

ITA 2600/KOL/2024

AI Insights

The case involves two appeals by Pricewaterhouse Coopers Pvt. Ltd. (PwCPL) against the orders of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, concerning the assessment year 2013-14. The primary contention was the erroneous dismissal of PwCPL's appeal based on the assumption that it had opted for the Direct Tax Vivad se Vishwas Scheme, 2020, which it had not. The tribunal noted that there was confusion due to the amalgamation of PwC Strategy& (India) Pvt. Ltd. with PwCPL, leading to the incorrect application of the Vivad se Vishwas Scheme to PwCPL's appeal. The tribunal directed that PwCPL's appeal be adjudicated on its merits, separate from the issues concerning PwC Strategy&.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705695 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Right to appeal
• Section: 143(3); 142(1)

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'डी' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘D’ BENCH, KOLKATA श्री प्रदीप क ुमार चौबे, न्याधयक सदस्य एवं श्री राक ेश धमश्रा, लेखा सदस्य क े समक्ष Before SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. Vs. DCIT, Circle-1(1), Kolkata (Appellant) (Respondent) PAN: AABCP9181H Appearances: Assessee represented by : K.M. Gupta and Bikas Jain, AR. Department represented by : Sanat Kumar Raha, CIT(DR). Date of concluding the hearing : 24-June-2025 Date of pronouncing the order : 30-June-2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: Both these appeals filed by the assessee are against the separate orders of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2013-14 dated 28.10.2024 and 24.10.2024, respectively, which have been passed against the orders u/s 143(3) of the Act, dated 31.03.2019. Page | 2 I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: ITA No. 2599/KOL/2024: “Based on the facts and circumstances of the case, PricewaterhouseCoopers Private Limited (here-in-after referred to as 'PwCPL/the Appellant'/'the assessee') respectfully craves leave to prefer an appeal against the order dated 28 October 2024 issued by the Learned Commissioner of Income-tax, National Faceless Appeal Centre (NFAC), Delhi ['Ld. CIT (Appeals)'] on the following grounds: 1. That on the facts and in the circumstances of the case, the order dated 28 October 2024 passed by the Ld. CIT (Appeals) is bad in law being passed again inadvertently on an incorrect fact that the Appellant has opted for the Direct Tax Vivad se Vishwas Scheme, 2020 in this matter and therefore, the Ld. CIT (Appeals) be directed to recall its order dated 28 October 2024. 2. That on the facts and in the circumstances of the case, the Ld. CIT (Appeals) erred in disposing the appeal by erroneously considering the Vivad se Vishwas Forms filed by the Appellant for matters relating to PwC Strategy& (India) Pvt. Ltd. (since merged with PricewaterhouseCoopers Private Limited w.e.f. 1 April 2017) for AY 2013-14. 3. That on the facts and in the circumstances of the case, the Ld. CIT (Appeals) erred in disposing the appeal of the Appellant in contravention to the direction issued by the Hon'ble Kolkata Income-tax Appellate Tribunal vide order dated 19 January 2023 (ITA No. 623-627/Kol/2022). That the appellant craves leave to add, amend, modify, rescind, supplement, or alter any or all of the above grounds of appeal stated hereinabove either before or at the time of hearing of this appeal.” ITA No. 2600/KOL/2024: “Based on the facts and circumstances of the case, PricewaterhouseCoopers Private Limited (here-in-after referred to as \"PwCPL//the Appellant'/'the assessee') respectfully craves leave to prefer an appeal against the order dated 24 October 2024 issued by the Learned Commissioner of Income-tax, National Faceless Appeal Centre (NFAC), Delhi ['Ld. CIT (Appeals)'\"] on the following grounds: 1. That on the facts and in the circumstances of the case, the order dated 24 October 2024 passed by the Ld. CIT (Appeals) is bad in law being passed again inadvertently on an incorrect fact that the Appellant has opted for the Page | 3 I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. Direct Tax Vivad se Vishwas Scheme, 2020 in this matter and therefore, the Ld. CIT (Appeals) be directed to recall its order dated 24 October 2024. 2. That on the facts and in the circumstances of the case, the Ld. CIT (Appeals) erred in disposing the appeal by erroneously considering the Vivad se Vishwas Forms filed by the Appellant for matters relating to PwC Strategy& (India) Pvt. Ltd. (since merged with PricewaterhouseCoopers Private Limited w.e.f. 1 April 2017) for AY 2013-14. 3. That on the facts and in the circumstances of the case, the Ld. CIT (Appeals) erred in disposing the appeal of the Appellant in contravention to the direction issued by the Hon'ble Kolkata Income-tax Appellate Tribunal vide order dated 19 January 2023 (ITA No. 623-627/Kol/2022). That the appellant craves leave to add, amend, modify, rescind, supplement, or alter any or all of the above grounds of appeal stated hereinabove either before or at the time of hearing of this appeal.” 3. At the outset it was submitted by the Ld. AR for the assessee that the Ld. CIT(A) has passed two orders in respect of the same assessment order in appeal and, therefore, the appeal in I.T.A. No.2600/KOL/2024 for the same A.Y. 2013-14 may be treated as infructuous. The Ld. DR did not oppose this contention. As the appeal in I.T.A. No.2600/KOL/2024 for the same A.Y. 2013-14 is against the same order, the same is treated as infructuous and is hereby dismissed. 4. Now we will take up the appeal in I.T.A. No.2599/KOL/2024. Brief facts of the case, as mentioned in the statement of facts are: “Statement of facts 1. PricewaterhouseCoopers Private Limited (hereinafter referred to as 'the Company' or 'the Appellant' or 'PwCPL) is a company incorporated in India under the Companies Act 1956 having its registered office at Kolkata primarily engaged in the business of providing consultancy services encompassing advisory services, tax technology and risk and assurance services to a wide spectrum of domestic and cross border clients in public, private and government sectors. Page | 4 I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. 2. The Appellant filed its return of income for the AY under consideration on 30 November 2013 by declaring a total income of Rs. 7,95,13,610. The case was selected for scrutiny assessment by issuing notices under section 143(2) and 142(1) of the Income tax Act, 1961 ('the Act'). In compliance to the said notices, the authorized representatives of the Appellant appeared before the Deputy Commissioner of Income-tax, Circle 2(2), Kolkata ('DCIT, Kolkata') from time to time and furnished the requisite details. 3. Thereafter, DCIT, Kolkata passed an assessment order dated 31 March 2016 under section 143(3) of the Act, determining a demand of Rs. 6,24,89,790. Aggrieved, the Appellant filed an appeal on 3 May 2016 before the Commissioner of Income-tax Appeals having appeal filing acknowledgment number: 166286041030516 - refer screenshot below. Name PRICEWATERHOUS E RAN COOPERS PRIVATE LIMITED AABCP9181H Form No 35 Assessment Year 2013-14 e-Filing Acknowledgeme nt Number 166286041030516 Date of e- Filing 03/05/2016 01:38:05 PM For and on behalf of. e-Fling Administrator (This is a computer generated Acknowledgement Receipt and needs no signature) 4. It is to be brought to your attention that PwC Strategy& (India) Private Limited ('Strategy&') (PAN: AADCB8076D), Lovelock & Lewes Consulting Services Private Limited (PAN: AAACI8289G) and ECS Private Limited (PAN: AAACE0279L) has been amalgamated with the Appellant Company with effect from the appointed date i.e., 1 April 2017 vide order dated 8 January 2019 passed by the National Company Law Tribunal. 5. It is important to note that Strategy& operated as a separate entity till 1 April 2017 i.e., the appointed date of merger and it had separate litigation to the Page | 5 I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. years prior to the merger which inter alia includes appeal pending before the CIT (Appeals) for AY 2013-14. 6. In the Direct Tax Vivad se Vishwas Scheme, 2020 ('VsV Scheme'), the Appellant approached for settlement of appeals pertaining to Strategy& for AY 2012-13, AY 2013-14 and AY 2014-15. Accordingly, Form 5 was issued for the aforesaid appeals pertaining to Strategy& by Principal Commissioner of Income- tax 1, Kolkata. It is pertinent to note that since Strategy& was merged with PwCPL, Form 5 was issued in the name of the PwCPL. Further, it may be noted that the appeals of Strategy& for AY 2012-13 and AY 2014-15 have already been disposed off. However, the appeal of AY 2013-14 is yet to be disposed of to give effect to the settlement under the VsV Scheme. 7. The appeal pertaining to AY 2013-14 in respect of which Strategy& has opted for VsV was also filed on 3 May 2016 against the order dated 30 March 2016 passed under section 143(3) of the Act by the Deputy Commissioner of Income Circle 6(1)(2), Mumbai (having appeal filing acknowledgement number - 166489981030516) - refer screenshot below. ACKNOWLEDGEMENT OF RECEIPT OF FORM (Other Than ITR) Name PWC STRATEGY& (INDIA) PRIVATE LIMITED PAN AADCB8076D Form No 35 Assessment Year 2013 e-Filing Acknowledgement Number 166489981030516 Date of e- Filing 03/05/2016 For and on behalf of e-Filing Administrator (This is a computer generated Acknowledgment Receipt and needs no signature) 8. It is pertinent to note that prior to 1 April 2017, PwCPL. was also a separate entity and it also had appeal pending before the Ld. CIT (Appeals) for the AY 2013-14. The said appeal was filed by PwCPL on 3 May 2016 (appeal filing Page | 6 I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. acknowledgement no. 166286041030516) against the order dated 31 March 2016, passed under Section 143(3) of the Act for the AY 2013-14 by Deputy Commissioner of Income-tax, Circle 2(2), Kolkata. The Company has not opted for VsV against this appeal i.e., appeal filed by PwCPL (appeal reference no. 166286041030516). 9. Previously also the Ld. Commissioner of Income-tax Appeals, National Faceless Appeal Centre ['CIT(Appeals), NFAC] vide order dated 17 September 2022 [ITBA/NFAC/S/250/2022-23/1045571895(1)], had dismissed this appeal filed by the Appellant (having appeal filing acknowledgement number 166286041030516) for the AY under consideration by considering that appellant has opted for VsV Scheme. Aggrieved by this, the Appellant preferred an appeal before the Hon'ble Kolkata Income-tax Appellate Tribunal ('Kolkata ITAT\") against the said order. Pursuant to which, the Hon'ble Kolkata ITAT vide order dated 19 January 2023 (ITA No. 623-627/Kol/2022) held that the order dated 17 September 2022 passed by the Ld. CIT Appeals, NFAC is not sustainable and relegated the matter for fresh adjudication before the Ld. CIT(Appeals), NFAC. The matter was reinstated in the Income-tax portal pursuant to the order of the Hon'ble Kolkata ITAT. 10. However, the Ld. CIT (Appeals), NFAC vide order dated 28 October 2024 has once again inadvertently dismissed the aforesaid appeal as withdrawn by considering that the Appellant has opted for Direct Tax Vivad se Vishwas Scheme, 2020 ('VsV Scheme') by stating as under: \"As Form 5 is seen issued on 28.02.2022, the assessee is allowed to withdraw the appeal.\" 11. It seems that the Ld. CIT(Appeals), NFAC based on Form 5 issued for Strategy& for AY 2013-14 is inadvertently dismissing the appeal of PWCPL for AY 2013-14 without taking into consideration that the appeal reference number (166489981030516) mentioned in Form 5 issued by the Principal Commissioner of Income-tax -1, Kolkata on 28 February 2022 pertains to Strategy& and not PwCPL. (The assessee has enclosed the screen shot in the case of Strategy&) Page | 7 I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. 12. The Ld. CIT(Appeals), NFAC has also passed an order dated 24 October 2024 wherein also the appeal pertaining to PwCPL for AY 2013-14 (having appeal filing acknowledgement number: 166286041030516) has been dismissed as withdrawn. Therefore, inadvertently two orders have been passed by Ld. CIT(Appeals), NFAC for one appeal. Appeal also lies before the Hon'ble Income-tax Appellate Tribunal against the order dated 24 October 2024. 13. The Ld. CIT(Appeals) may be directed to decide the appeal for AY 2013-14 by taking into consideration the above-mentioned facts on merits in the interest of justice. The Appellant is aggrieved by the aforesaid order dated 28 October 2024 passed by the Ld. CIT Appeals (NFAC) and hence is in appeal before your goodself.” 5. Rival submissions were heard and the record and the submissions made have been examined. 6. As is mentioned in the statement of facts of the case and which was also submitted in the course of the appeal before us, the assessee had filed the return of income for the A.Y. 2013-14 in which total income was shown at Rs. 7,95,13,610/- and the Ld. AO assessed the total income under section 143(3) of the Act vide order dated 31.03.2016 at Rs. 214,81,23,960/-. Aggrieved with the assessment order, the assessee preferred an appeal before the Ld. CIT(A), who vide order dated 28.10.2024 allowed the assessee to withdraw the appeal on the basis of Form 5 issued on 28/02/2022, although the assessee had not opted for settlement of the dispute under the Direct Taxes Vivad Se Vishwas Scheme, 2024 (DTVSVS). It is stated that PWC STRATEGY& (INDIA) PRIVATE LIMITED had amalgamated with the assessee company with effect from the appointed date i.e. 01/04/2017 vide order dated 08/01/2019 passed by the NCLT. However, the same had operated as a separate entity till 01/04/2017, i.e. the appointed date of merger and Page | 8 I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. was having separate litigations for the years prior to the merger, which also included the appeal pending before the Ld. CIT(A) for A.Y. 2013-14. The disputes pertaining to A.Y. 2012-13 to A.Y. 2014-15 were settled vide the DTVSVS and Form No. 5 was issued in the name of PWC STRATEGY& (INDIA) PRIVATE LIMITED and no such settlement was sought for in the case of the assessee for the impugned assessment year 2013-14, therefore there was no reason for dismissing the appeal on account of Form No. 5 issued in the case of PWC STRATEGY& (INDIA) PRIVATE LIMITED once again. Our attention was also drawn to page 1 of the paper book being the assessment order of PWC STRATEGY& (INDIA) PRIVATE LIMITED and pages 7 and 8 containing the appeal filing acknowledgements for both the entities and also to 10 as well which is the VsV declaration in the case of the amalgamating company and no such declaration was filed in the case of the assessee. The detailed sequence of events and other details are also mentioned. It was stated that the order of the Ld. CIT(A) may be set aside and the appeal may be restored for adjudication as per law. The Ld. DR did not seriously object to this proposition of the Ld. AR. 7. We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT(A). The confusion arose on account of the amalgamation of the erstwhile PWC STRATEGY& (INDIA) PRIVATE LIMITED with the assessee, both of which were in existence for the year relevant to the impugned assessment year. Both being separate legal entities had a right to file an appeal against the assessment order in their respective cases. Since the amalgamating company had settled its dispute for A.Y. 2013-14, only the appeal of PWC STRATEGY& (INDIA) PRIVATE LIMITED was liable to be dismissed while the appeal of the assessee being a separate dispute Page | 9 I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. of a limited company which is currently in existence, was required to be decided as per law. The Ld. AO should have cross verified with the assessee as to which appeal was required to be dismissed. This having not been done, the entire confusion has again arisen. Hence, the order of the Ld. CIT(A) is hereby set aside and he is required to decide the appeal of the assessee (PAN AABCP9181H) on the grounds taken and pass the order in accordance with law. Since the PAN of the assessee and appeal number are good identifiers, the appeal filed vide appeal filing Acknowledgement No. 166286041030516 against the order dated 31/03/2016 is to be decided after providing an opportunity of being heard to the assessee. Hence all the grounds of appeal are allowed, the order of the Ld. CIT(A) is hereby set aside to adjudicate the appeal as per law in the case of the assessee. 8. In the result, we are here angry the appeal of the assessee in I.T.A. No.2599/KOL/2024 is allowed subject to the above directions while the appeal in I.T.A. No.2600/KOL/2024 is dismissed on account of being infructuous. Order pronounced in the open Court on 30th June, 2025. Sd/- Sd/- [Pradip Kumar Choubey] [Rakesh Mishra] Judicial Member Accountant Member Dated: 30.06.2025 Bidhan (P.S.) Page | 10 I.T.A. Nos.: 2599 and 2600/KOL/2024 Assessment Year: 2013-14 M/s. Pricewaterhouse Coopers Pvt. Ltd. Copy of the order forwarded to: 1. M/s. Pricewaterhouse Coopers Pvt. Ltd., Block-EP, Plot-Y-14, Salt Lake City, Sector-V, Kolkata, West Bengal, 700091. 2. DCIT, Circle-1(1), Kolkata. 3. CIT(A)-NFAC, Delhi. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "