P.BASKAR, CHENNAI V. ITO INTERNATIONAL TAXATION WARD 1(1), CHENNAI

MA 2/CHNY/2023

AI Insights

The case involves a Miscellaneous Application filed by Mr. Parameswaran Bashkar against the order of the Income Tax Appellate Tribunal, which pertained to the assessment year 2015-16. The Tribunal had previously remanded the matter back to the CIT(A) for a de novo decision, which resulted in a favorable outcome for the petitioner. The Revenue's subsequent MA against the Tribunal's order was dismissed as infructuous because the petitioner had settled the disputed demand under the VSVS, 2020 scheme. However, the petitioner later claimed that the proceedings for the assessment year 2015-16 were not resolved under the VSVS Act, leading to the current MA, which was dismissed as the issues had already been settled and attained finality.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130034 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-02-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 03-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Competent authority; Set aside
• Section: 254(2)

Judgement Text

Miscellaneous Application No.2/Chny/2023 (in ITA No.2962/Chny/2018) िनधा रण वष /Assessment Year: 2015-16 Mr.Parameswaran Bashkar, No.3D, Lakshmimma Apartments, No.40, 4 th Seaward Road, Thiruvanmiyur, Chennai-600 041. v. The Income Tax Officer, International Taxation, Ward-1(1), Chennai. [PAN: ADAPB 4101 C] (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओर से/ Appellant by : Mr.S.Sridhar, Adv. यथ क ओर से /Respondent by : Mr.D. Hema Bhupal, JCIT सुनवाई क तारीख/Date of Hearing : 17.02.2023 घोषणा क तारीख /Date of Pronouncement : 21.02.2023 आदेश / O R D E R PER G. MANJUNATHA, ACCOUNTANT MEMBER: The petitioner has filed present Miscellaneous Application u/s.254(2) of the Income Tax Act, 1961, against the order of the Tribunal in ITA No.2962/Chny/2018 dated 04.11.2022 and relevant assessment year 2015-16. 2. The petitioner has narrated the facts of its case and mistakes stated to be apparent on record from the order of the Tribunal dated 04.11.2022 and relevant contents of Miscellaneous Application filed by the petitioner are reproduced as under: आयकर अपीलीय अिधकरण, ‘बी’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI ी वी. दुगा राव, माननीय ाियक सद एवं ी जी. मंजूनाथा, माननीय लेखा सद के सम BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI G. MANJUNATHA, HON’BLE ACCOUNTANT MEMBER MA No.2/Chny/2023 (in ITA No.2962/Chny/2018) :: 2 :: Short Facts: The appellate Tribunal in their order dated 27.04.2021 remanded the entire matter for de novo consideration and decision to the file of the CIT(A) in para 5. The relevant portion of the appellate tribunal's order is extracted herein after: 5. We heard the rival submissions and gone through the relevant material available on record. The Ld. CIT(A) decided the appeal holding that he posted the case for hearing on various dates, but non appeared nor represented the case. However, the assessee pleads that the impugned appeal was decided without giving an opportunity. Therefore, it was pleaded that at last one effective opportunity of being heard before the Ld.CIT(A) would ensure deciding the issues on merits thereby substantial justice would be rendered. In the facts and circumstances, we deem it fit to set aside the order of Ld. CIT(A) and remit this issues back to the Ld. CIT(A) for fresh decision. The assessee shall furnish relevant material in support of his contention and comply with the requirements of the Ld. CIT(A) in accordance with law in such a way that the appeal is decided early. The Ld. CIT(A) on due examination of them and after affording due opportunity to the assessee decide the issues in accordance with law. The said decision was rendered by the appellate tribunal during the pendency of dispute resolution initiated by the petitioner / assessee under VSVS Act, 2020 and in fact, the initiation was due to the filing of Form No. 1 of the Act dated 31.03.2021 while the Form No. 3 issued by the competent authority for dispute resolution was dated 21.04.2021. The effect giving order was passed by the First Appellate Authority in consequence to the remand order of the Tribunal dated 27.04.2021 thereafter in favour of the petitioner / assessee and the said order has attained finality. The Revenue had filed a Miscellaneous Application u/s. 254(2) of the Act in MA No. 112/CHNY/2022 against the order of the Tribunal dated 27.04.2021 in ITA No. 2962/CHNY/2018, relevant to assessment year 2015-16. The Hon'ble Income Tax Appellate Tribunal in their MA No. 112/CHNY/2022 dated 04.11.2022 dismissed the miscellaneous application of the revenue. The relevant portion of the order is extracted herein after 2. We have heard both the parties and considered relevant contents of Miscellaneous Application filed by the Revenue for assessment year 2011-12, and we find that during the course of hearing, Ld. Counsel for the assessee submitted that the assessee has settled disputed demand involved in this appeal under Direct Tax Vivad Se Viswas Scheme, 2020 and paid taxes. Therefore, Miscellaneous Application filed by the Revenue becomes infructuous. We find that the asssessee has settled disputed demand involved in the appeal under VSVS scheme, 2020 and paid taxes and thus, we are of the considered view that Miscellaneous Application filed by the Revenue becomes infructuous and thus, same is dismissed as not maintainable. PRAYER: It is submitted that proceedings for the assessment year: 2015-16 is not resolved under VSVS Act, 2020 as could be seen / evident from the facts captured herein before and the proceedings as stated above had reached finality in view of the First Appellate Authority's order passed in the remand proceedings. The closure of the proceedings by the Appellate Tribunal in dismissing the revenue's MA referred to herein before in consequence to the mistake committed by the petitioner in reporting to the bench on the closure of the proceedings for the assessment year under MA No.2/Chny/2023 (in ITA No.2962/Chny/2018) :: 3 :: consideration under VSVS Act, 2020. In fact, the proceedings for this assessment year had reached finality in the virtue of the First Authority's order passed in the remand proceedings. In such circumstances, the mistake in the appellate tribunal's order dated 04.11.2022 may be suitably modified by taking on record the correct facts which are bought out by the petitioner through this petition by dismissing the revenue's MA / by closing the proceedings for the assessment year 2015-16 and thus render justice. 3. The Ld.Counsel for the petitioner submitted that MA filed by the petitioner is not maintainable, because, the Ld.CIT(A) in consequence to ITAT directions in remanding the matter for fresh adjudication has allowed the appeal of the petitioner and such order has attained finality, because, the Revenue has not preferred further appeal before the Tribunal. He further submitted that the Revenue had filed MA u/s.254(2) of the Act, in MA No.112/Chny/2022 against the order of the Tribunal dated 27.04.2021 and MA filed by the Revenue has been dismissed by the Tribunal as not maintainable. He further submitted that the petitioner had opted for VSVS, 2020, but could not complete the formalities and thus, there is no cause of action for the Revenue. 4. The Ld.DR, on the other hand, submitted that the petitioner in response to MA filed by the Revenue submitted that the petitioner had availed the benefit of VSVS, 2020 and paid taxes and on said ground the appeal filed by the Revenue has been dismissed by the Tribunal. Now, the petitioner claims that he has not availed VSVS, 2020, but the Ld.CIT(A) has allowed relief in favour of the petitioner and said order has attained finality, but facts remain that when the Revenue has filed MA, the petitioner has not availed VSVS, 2020 and not settled the dispute. Therefore, the order passed by the Tribunal should be recalled. MA No.2/Chny/2023 (in ITA No.2962/Chny/2018) :: 4 :: 5. We have heard both the parties and considered the contents of MA filed by the petitioner and we find that although, the petitioner claimed to have settled the dispute under VSVS, 2020 when the Revenue has filed MA, but facts remain that the Ld.CIT(A) has allowed relief in favour of the petitioner in consequence to directions of the Tribunal and said order has attained finality, because, the Revenue does not prefer further appeal before the Tribunal. Since, the order passed by the Ld.CIT(A) has attained finality. in four considered view, there is no cause of action for the assessee as well as the Revenue. Therefore, we are of the considered view that the MA filed by the petitioner become academic in nature and thus, the same has been dismissed as infructuous. 6. In the result, the Miscellaneous Application filed by the petitioner is dismissed. Order pronounced on the 21 st day of February, 2023, in Chennai. Sd/- (वी. दुगा राव) (V. DURGA RAO) याियक सद य/JUDICIAL MEMBER Sd/- (जी. मंजूनाथा) (G. MANJUNATHA) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 21 st February, 2023. TLN आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 4. आयकर आयु /CIT 2. यथ /Respondent 5. िवभागीय ितिनिध/DR 3. आयकर आयु (अपील)/CIT(A) 6. गाड! फाईल/GF