THE DY DIT (I.T) 1(1), MUMBAI V. M/S. AIR INDIA LATD AS AGENT OF M/S. CARIBJET INC, Mumbai

MA 161/MUM/2022

AI Insights

The case revolves around the application of the Vivad Se Vishwas Scheme (VSVS) by Air India Ltd. to settle disputes related to income tax assessments for the years 2000-01 and 2001-02. The Deputy Commissioner of Income Tax sought to set aside an earlier order that had settled one of the disputes under the VSVS. However, Air India contested this, presenting evidence that both years were covered under the VSVS settlement, including the payment of a substantial amount directed by the designated authority. The Tribunal found that the Revenue's appeal regarding the assessment year 2001-02 had become infructuous following the compliance with the VSVS settlement, leading to the dismissal of the Revenue's application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301262 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-01-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 11-08-2022
• Assessment Year: 2001-2002
• Appeal Filed On: 15-06-2022
• Laws Referred To: Vivad Se Vishwas Scheme (VSVS)
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “I”, MUMBAI BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER MA No.161/M/2022 (Arising out of ITA No.106/M/2005) Assessment Year: 2001-02 Dy. Commissioner of Income Tax (I.T.)1(1), Room No.117, 1 st Floor, Scindia House, Ballard Pier, Mumbai – 400 038 Vs. M/s. Air India Ltd. (As representative assessee of Caribjet Inc), Air India Building, Nariman Point, Mumbai – 400 021 PAN: AAACA9213E (Appellant) (Respondent) Present for: Assessee by : Shri Rajnish Aggarwal, A.R. Revenue by : Shri Tejinder Pal Singh Anand, Sr. AR. Date of Hearing : 12 . 08 . 2022 Date of Pronouncement : 16 . 01 . 2023 O R D E R Per : Kuldip Singh, Judicial Member: Heard : Applicant Dy. Commissioner of Income Tax (IT)1(1), Mumbai by moving miscellaneous application sought to set aside the impugned order dated 01.12.2021 passed by the Bench in ITA No.6630/M/2016 for A.Y. 2000 –01 and ITA No.106/M/2005 for A.Y. 2001 – 02 to the extent that vide assessee’s application filed under Vivad Se Vishvas Scheme (VSVS) only ITA No.6630/M/2016 for A.Y. 2000-01 was settled as per form-1 filed by the assessee and no such order was passed in ITA No.106/M/2005 for A.Y. 2001 – 02. MA No.161/M/2022 (Arising out of ITA No.106/M/2005) M/s. Air India Ltd. (As representative assessee of Caribjet Inc) 2 2. Aforesaid factual position has been disputed by the respondent- assessee by bringing on record following facts: “8. In January 2021 Air India decided to settle these disputed cases by opting under Vivad se Vishwas Scheme (DTVSV). Accordingly, Form No. 1 & 2 were filed by Air India on 30-01-2021 for Asst. Years 2000-01 and Anst Year 2001-02 against which the PCIT, International Taxation, Mumbai has issued Form No. 3 (revised) dated 22.09.2021 for the Asst. Year 2000- 2001 and Form No. 3 dated 27 August 2021 for the Asst. Year 2001-2002 accepting the settlement of disputed cases under Vivad se Vishwas Scheme (DTVSV). 9. At the time of filing of Form No. 1 & 2 for the Asst. Year 2000-01 and 2001- 2002 under DTVSV Scheme, the following five appeals (three filed by Air India and two filed by Revenue) were pending before the Hon'ble Income Tax Appellate Tribunal, Mumbai A. ITAT Appeals filed by Air India a) Asst. Year 2000-2001 (i) Appeal No. ITA/9320/MUM/2004 b) Asst. Year 2001-2002 (i) Appeal No. ITA/9321/MUM/2004 (ii) Appeal No. ITA/9322/MUM/2004 B. ITAT Appeals filed by Revenue: a) Asst. Year 2000-2001 (i) Appeal No. ITA/6630/MUM/2006 b) Asst. Year 2001-2002 (i) Appeal No. ITA/106/MUM/2005 10. Air India moved an application before Hon'ble ITAT, Mumbai for the withdrawal of appeals filed by Air India which were allowed to be withdrawn by the Hon'ble ITAT, T Bench, Mumbai vide its order dated 01.07.2021 11. Air India also prayed before the Hon'ble ITAT Mumbai that the Revenue may withdraw the appeals filed by Income Tax Department bearing number Appeal No. ITA/6630/MUM /2006 for the AY. 2000- 2001 and Appeal No TTA/106/MUM/2005 for the A.Y. 2001-2002 being infructuous in view the settlement of disputed cases by Air India under DTVSV Scheme was allowed by the Hon'ble ITAT T Bench, Mumbai vide its order dates! 01.12.2021.” ........... ........... MA No.161/M/2022 (Arising out of ITA No.106/M/2005) M/s. Air India Ltd. (As representative assessee of Caribjet Inc) 3 18. As the matter became pending before Hon'ble ITAT Mumbai on the specified date as per DTVSV Scheme i.e. 31 January, 2020, Air India furnished Form 1 & 2 opting for settlement of this issue of quantum award by filing a declaration in Form 1 & 2 dated 30-01-2021 for Asst. Year 2000- 01 and Asst. Year 2001-2002. Later on the designated Authority has also issued Form No. 3 (revised) on 22.09 2021 for the Asst. Year 2000-2001 and Form No. 3 dated 27.08.2021 for the Asst. Year 2001-2002 requiring Air India to deposit Rs. 16,89,86,140/- for the Asst. Year 2000-2001 which was duly deposited on 29.09.2021 19. In accordance with the provisions DTVSV Scheme Air India also filed Form No, 4 manually as system was not accepting online uploading. 20. It can be seen from the above that by opting for DTVSV Scheme, Air India paid tax on the Quantum Award Money USD 22.4 Million in Asst. Year 2000-2001. Therefore, the taxability of Quantum Award Money issue attained, finality in Asst. Year 2000-01 itself. Hence, Ground No. 1 of Revenue Appeal bearing number ITA/106/MUM/2005 with respect to Award money USD 22.4 Million in Asst. Year 2001-02 added on protective basis becomes infructuous”. 3. Bare perusal of the pleading made by the respondent-assessee goes to prove that Air India /respondent has opted for settlement qua the issue of quantum award by filing declaration in Form No.1 and 2 dated 30.01.21 for A.Y. 2000-01 & A.Y. 2001– 02 against which designated authority has issued form No.3 dated 27.08.2021 for A.Y.2001 – 02 directing Air India/respondent to deposit Rs.16,89,86,140/- for A.Y. 2000-01 which was duly deposited on 29.09.2021. When the Air India /respondent has duly complied with the order passed by the designated authority under VSVS by depositing the amount of Rs.16,89,86,140/- pertaining to AY. 2000 -01 the same addition in respect of award money USD 22.4 million in A.Y. 2001 – 02 was added on protective basis the appeal filed by the Revenue bearing ITA MA No.161/M/2022 (Arising out of ITA No.106/M/2005) M/s. Air India Ltd. (As representative assessee of Caribjet Inc) 4 No.106/M/2005 has become infructuous. This factual position has not been controverted by Ld. D.R. by bringing on record any evidence to the contrary. 4. So finding no mistake apparent on record in the order dated 01.12.2021 passed by the Tribunal in ITA No.6630/M/2006 & ITA No.106/M/2005 the present application filed by the Revenue is hereby Dismissed. Order pronounced in the open court on 16.01.2023 Sd/- Sd/- (AMARJIT SINGH) (KULIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 16.01.2023. * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The CIT (A) Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai.