MR. ABDUL SUBHAN, CHENNAI V. ACIT, CENTRAL CIRCLE - 1 (4), CHENNAI

MA 92/CHNY/2022

AI Insights

The case involves Mr. Abdul Subhan, the Petitioner, who filed a Miscellaneous Application under Section 254(2) of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal (ITAT) dated 05.01.2021. The original appeal (ITA No.2304/Chny/2019) was withdrawn as part of the Direct Tax Vivad-Se-Vishwas scheme, 2020, which aimed to settle pending tax disputes. However, due to financial constraints, the Petitioner could not pay the determined tax amount by the due date, leading to the filing of the Miscellaneous Application to restore the appeal. The Tribunal found merit in the Petitioner's application, noting the non-willful nature of the failure to comply with the scheme's conditions and granted the restoration of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130041 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 23-02-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 16-08-2022
• Laws Referred To: Income Tax Act, 1961, Direct Tax Vivad-Se-Vishwas Act, 2020
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

Miscellaneous Application No.92/Chny/2022 (in ITA No.2304/Chny/2019) िनधा रण वष /Assessment Year: 2016-17 Mr.Abdul Subhan, No.18/231, Amman Koil Street, Chennai-600 001. v. The Asst. Commissioner- of Income Tax, Central Circle-1(4), Chennai. [PAN: AZLPA 6750 D] (अपीलाथ / Petitioner) ( यथ /Respondent) अपीलाथ क ओर से/ Petitioner by : Mr.B.Ramakrishnan, FCA यथ क ओर से /Respondent by : Mr.D.Hema Bhupal, JCIT सुनवाई क तारीख/Date of Hearing : 24.02.2023 घोषणा क तारीख /Date of Pronouncement : 24.02.2023 आदेश / O R D E R PER MANJUNATHA.G, ACCOUNTANT MEMBER: The Petitioner has filed present Miscellaneous Application u/s.254(2) of the Income Tax Act, 1961 (in short “the Act") against the order of the Tribunal in ITA No.2304/Chny/2019 dated 05.01.2021 and relevant assessment year 2016-17. 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 05.01.2021 and relevant contents of Miscellaneous Application filed by the Petitioner for the AY 2016-17 in ITA No.2304/Chny/2019 are reproduced as under: आयकर अपीलीय अिधकरण, ‘ए’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI ी वी. दुगा राव, माननीय ाियक सद एवं ी मंजूनाथा.जी, माननीय लेखा सद के सम BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA.G, HON’BLE ACCOUNTANT MEMBER MA No.92/Chny/2022 (in ITA No.2304/Chny/2019) :: 2 :: 1. The Petitioner had filed the above Appeal in ITA No.2304/Chny/2019, challenging the order of the Commissioner of Income Tax (Appeals) - 18, Chennai dated 29.05.2019, for the Assessment Year 2016-17. 2. The above stated appeal was disposed of by the Hon'ble Income Tax Appellate Tribunal (ITAT) as withdrawn, vide order dated 05.01.2021, since the Petitioner had opted for 'Direct Tax Vivad-Se-Vishwas scheme, 2020' announced by the Government of India in Budget, 2020 to settle the pending disputes relating to Direct Taxes at various appellate forums including the First Appellate Authority, Tribunal, High Court and Supreme Court. It is submitted that the Hon'ble Tribunal, vide para 5 of its said order, had given the liberty to the Petitioner to restore his appeal under Section 4 of the Direct Tax Vivad-Se-Vishwas Act, 2020 (DTVSV Act). 3. Form 3 dated 08.12.2020 was issued to the Petitioner under the DTVSV Act, determining a sum of Rs.17,72,717/- as payable by him. However, due to paucity of funds, the Petitioner was unable to remit the said sum before the stipulated due date for payment being October 31, 2021 and thus had failed to comply with the respective provisions of the DTVSV Act. 4. It is submitted that the above mentioned failure of the Petitioner was not willful and was due to circumstances beyond his control and hence, now, it is humbly prayed before this Hon'ble Tribunal to restore the above mentioned appeal and grant an opportunity to appear and substantiate the case. 5. It is submitted that as per the above mentioned Hon'ble Tribunal's order dated 05.01.2021 and Section 4 of the DTVSV Act, 2020, the Petitioner has been provided with the liberty to restore his appeal in the event of non-satisfaction of the conditions laid therein and the same is applicable to the Petitioner since he had not remitted the due taxes determined under the DTVSV Act within the stipulated due date. Hence, in the interest of justice, it is prayed to restore the appeal to its original position so that the issues involved in the appeal can be adjudicated upon on its merit by this Hon'ble Tribunal. 6. The Petitioner submits that no similar application other than the instant application has been filed against the order of this Hon'ble ITAT. 7. In view of the aforementioned facts and circumstances, it is humbly prayed that this Hon'ble Tribunal may be pleased to allow the Miscellaneous Petition and restore the appeal in ITA No.2304/Chny/2019 and thus render justice. 3. We have heard both the side and considered relevant contents of MA filed by the Petitioner u/s.254(2) of the Income Tax Act, 1961 (in short “the Act"). We find that the Tribunal has dismissed the appeal filed by the assessee in ITA No.2304/Chny/2019 order dated 05.01.2021 in light of Direct Tax Vivad-Se-Vishwas scheme, 2020, and relevant Form Nos. 1 & 2 filed by the Petitioner. We further noted that when the Tribunal has MA No.92/Chny/2022 (in ITA No.2304/Chny/2019) :: 3 :: disposed off appeal filed by the assessee, the Petitioner was awaiting for Form No.3. Therefore, a liberty has been given to the Petitioner to file petition u/s.254(2) of the Act, to recall the order of the Tribunal, in case, for any reason, application filed by the Petitioner, has been rejected by the designated authority. In this case, the Petitioner stated that the Miscellaneous Application filed by the Petitioner has been rejected by the designated authority for non-compliance of certain conditions, including payment of taxes. Therefore, the Petitioner was opted out from DT VSVS, 2020. 4. Having heard both the side, we find that although, the Petitioner has filed declaration in Form Nos.1 & 2 to settle its dispute under Direct Tax Vivad-Se-Vishwas scheme, 2020, but subsequently, the Petitioner has opted out from Direct Tax Vivad-Se-Vishwas scheme, 2020, for the reason that it could not satisfy the conditions prescribed under Section 4 of the Direct Tax Vivad-Se-Vishwas Act, 2020. We further noted that as per sec.4 of DT VSVS, 2020, the petitioner has been provided with the liberty to restore his appeal in the event of non-satisfaction of the condition laid down therein. Since, the Petitioner’s application has been rejected by the designated authority for non-satisfaction of certain conditions, we are of the considered view that order of the Tribunal in ITA No.2304/Chny/2019 dated 05.01.2021 needs to be recalled, because, a liberty has been given to the petitioner to file petition for restoration of appeal in the event of rejection of application filed by the Petitioner under DT VSVS and thus, we MA No.92/Chny/2022 (in ITA No.2304/Chny/2019) :: 4 :: recall the order of the Tribunal in ITA No.2304/Chny/2019 and direct the Registry to post the appeal for hearing in due course and intimate both sides. 5. In the result, the Miscellaneous Application filed by the Petitioner is allowed. Order pronounced on the 24 th day of February, 2023, in Chennai. Sd/- (वी. दुगा राव) (V. DURGA RAO) याियक सद य/JUDICIAL MEMBER Sd/- (मंजूनाथा.जी) (MANJUNATHA.G) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 24 th 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