OSI DIGITAL PRIVATE LIMITED,HYDERABAD V. DCIT., CIRCLE-5(1), HYDERABAD

ITA 883/HYD/2025

AI Insights

The case involves OSI Digital (P) Ltd, which appealed against the order of the CIT (A) enhancing the assessment for the assessment year 2017-18. The assessee had opted for the Vivad-se-Vishwas Scheme (VSVS) 2024 to resolve disputes and sought immunity from penalty and prosecution. Despite this, the CIT (A) dismissed the appeal and enhanced the assessment. The Tribunal noted that the CIT (A) did not consider the developments related to the VSVS before passing the order and thus remanded the case for reconsideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714525 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Other Referred Cases: Checkmate Services (P) Ltd vs. CIT [2022] 143 taxmann.com 178 (SC)
• Laws Referred To: Vivad-se-Vishwas Scheme (VSVS) 2024, Employees' Contribution towards PF and ESI
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

" ITA No 883 of 2025 OSI Digital P Ltd Page 1 of 4 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-A ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.883/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2017-18) OSI Digital (P) Ltd Hyderabad PAN: AABCN8437G Vs. Dy.CIT Circle 5(1) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: N O N E राज̾ व Ȫारा/Revenue by:: Shri Gurprtte Singh, Sr. AR सुनवाई की तारीख/Date of hearing: 06/08/2025 घोषणा की तारीख/Pronouncement: 08/08/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal by the assessee is directed against the order dated 21/03/2025 of the learned CIT/ADDL/JCIT(A)-4, Kolkata, for the A.Y.2017-18. 2. The assessee has raised the following grounds of appeal: Printed from counselvise.com ITA No 883 of 2025 OSI Digital P Ltd Page 2 of 4 3. None appeared on behalf of the assessee when this appeal was called for hearing, despite the notices were issued to the assessee and also the defect notice sent to the assessee for removing the defect in filing the appeal. Accordingly, the Bench proposes to hear and dispose of the appeal, ex-parte. 4. We have heard the learned DR and carefully perused the orders of the authorities below. The assessee has sent a letter dated 04/07/2025 whereby it is submitted that in order to seek immunity from penalty and prosecution, the assessee has opted for direct Vivad-se-Vishwas Scheme (VSVS) 2024. The designated authority also issued Form-2 on 19th March, 2025. In the meantime, the assessee requested the learned CIT (A) to adjourn the hearing for a period of 15 days as the assessee has already opted for VSVS Scheme. However, the learned CIT (A) has dismissed the appeal of the assessee and also enhanced the assessment while passing the impugned order vide order dated 21/03/2025. Thus, the assessee has submitted that the dispute Printed from counselvise.com ITA No 883 of 2025 OSI Digital P Ltd Page 3 of 4 regarding the additions made by the Assessing Officer have been settled under VSVS Scheme, and the present appeal is confined only on the issue of enhancement of assessment made by the learned CIT (A). 5. On the other hand, the learned DR has submitted that the issue of disallowance of belated payment of Employees’ Contribution towards PF and ESI is now covered by the judgment of the Hon'ble Supreme Court in the case of Checkmate Services (P) Ltd vs. CIT reported in [2022] 143 taxmann.com 178 (SC). He has relied upon the impugned order of the learned CIT (A). 6. Having considered the submissions of the parties and the impugned order passed by the learned CIT (A), it is noted that before the impugned order was passed by the learned CIT (A) on 21/03/2025, the assessee already opted for VSVS Scheme 2024 by filing Form No.1 on 31/01/2025. In response to the notice on enhancement issued by the learned CIT (A) dated 21/02/2025, the assessee explained this fact of opting for Direct VSV Scheme, 2025 and sought adjournment of 15 days, as Form-2 was yet to be issued by the designated authority. Even before this order was passed, Form-2 was issued by the designated authority on 19/03/2025 and therefore, the learned CIT (A) ought to have considered this development of settlement of dispute under Direct VSVS 2024 before passing the impugned order. Accordingly, in the facts and circumstances of the case, we set aside the impugned order of the learned CIT (A) and remand the matter to the record of the learned CIT (A) for readjudication of the matter Printed from counselvise.com ITA No 883 of 2025 OSI Digital P Ltd Page 4 of 4 after considering the fact of settlement of dispute by the assessee under the Direct VSV Scheme, 2024 as well as the submissions of the ass on the issue of enhancement of assessment. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 8th August, 2025. Sd/- Sd/- (MANJUNATHA, G.) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 8th August, 2025 Vinodan/sps Copy to: S.No Addresses 1 OSI Digital (P) Ltd, Plot 37, L and T Info City Lane, HiTec City Phase 2 Madhapur, Madhapur BO Shaikpet, Hyderabad 500081 2 Dy. Cit, Circle 5(1) IT Towers, Professor Elyas Burney Road, AC Guards, Masab Tank, Hyderabad 500004 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order Printed from counselvise.com "