SATISH KUMAR AGRAWAL, BHILAI,DURG V. INCOME TAX OFFICER, WARD-1(3), BHILAI, DURG

MA 19/RPR/2025

AI Insights

The case involves Satish Kumar Agrawal, the appellant, who initially withdrew his appeal against a penalty order under section 271B of the Income-tax Act, 1961, to opt for the Vivad Se Vishwas Scheme, 2024. However, due to non-compliance with the scheme's requirements, the appellant could not secure the benefits, leading to the current miscellaneous application to recall the withdrawn appeal. The Tribunal considered the circumstances and the provisions under section 254(2) of the Income-tax Act, 1961, which allows for the rectification of orders, and decided to recall the appeal for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706797 (ITAT-RAIPUR)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 19-05-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: S.R. RAO

Judgement Text

" आयकर अपीलीय अिधकरण, रायपुर Ɋायपीठ, रायपुर IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE SHRI PARTHA SARATHI CHAUDHURY, JM & SHRI ARUN KHODPIA, AM MA No. 19/RPR/2025 (Arising out of ITA 542/RPR/2024) (Assessment Year: 2018-19) आदेश / O R D E R Per Arun Khodpia, AM: The captioned miscellaneous appeal (MA) is filed by the assessee seeking recalling of the appeal in ITA No.542/RPR/2024, which has been dismissed as withdrawn by the Tribunal vide an order dated 22.01.2024. The contents of the miscellaneous application filed by the assessee are extracted herein for the sake of completeness of facts: “Hon'ble Sirs, In connection with the above matter, it is most humbly and respectfully submitted as under: - Satish Kumar Agrawal, 38/10, Nehru Nagar West, Bhilai, District: Durg- 490029, C.G. V S Income Tax Officer, Ward-1(3), Aaykar Bhawan, Civic Center, Bhilai- 490006, C.G. PAN: AFLPA2025F (अपीलाथŎ/Appellant) . . (ŮȑथŎ / Respondent) िनधाŊįरती की ओर से / Assessee by : Shri S. R. Rao, Advocate राजˢ की ओर से / Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई की तारीख / Date of Hearing : 07.07.2025 घोषणा की तारीख / Date of Pronouncement : 09.07.2025 MA No.19/RPR/2025 (Arising out of ITA No. 542/RPR/2024) Satish Kumar Agrawal vs. ITO, Ward-1(3), Bhilai, Durg 2 1. That aggrieved by penalty order dated 19/08/2021 passed u/s.271B of the Income-tax Act, 1961, I have filed appeal before the Ld. Commissioner of Income-tax (Appeals), NFAC. 2. That aggrieved by order of Ld. Commissioner of Income-tax (Appeals) that I have filed 2nd appeal before this Hon'ble Income- tax Appellant Tribunal and raised following grounds- I. In facts and circumstances of the case and in law, the Ld. Commissioner of Income tax (Appeals) as erred in confirming the order imposing penalty of Rs. 1,50,000/- under section 271B of the Income-tax Act, 1961. II. The impugned order is bad in law and on facts. III. The appellant reserves the right to addition, alter or omit all or any of the grounds of appeal in the interest of justice. 3. That during the pendency of the appeal, the appellant submitted an adjournment application before this Hon'ble Tribunal stating that he was proposing to opt for dispute resolution under the Vivad se Vishwas Scheme, 2024, and requested for time to enable the same. 4. That the Hon'ble Tribunal, dismissed the appeal by not granting the adjournment and treating the appeal as withdrawn. 5. That in its order, the Hon'ble Tribunal was pleased to observe that in the event the order for full and final settlement of tax arrears in Form No. 4 is not issued by the Designated Authority, the appellant shall be at liberty to seek restoration of the appeal. 6. That due to adverse circumstances, the applicant could not succeed in making further compliances and ultimately the due date for making subsequent compliances has expired. 7. That in light of the above facts, keeping the liberty granted in the order passed on 22.01.2025 dismissing the appeal, the Appellant MA No.19/RPR/2025 (Arising out of ITA No. 542/RPR/2024) Satish Kumar Agrawal vs. ITO, Ward-1(3), Bhilai, Durg 3 prays that the Hon'ble Tribunal may be pleased to amend said under section 254(2) of the Act in the interest of justice. 8. That the order requiring rectification was passed on 22.01.2025, accordingly the present Application u/s. 254(2) of the Act is within time. 9. The applicant has paid Rs.50/- towards fee and copy of counterfoil of paid challan is submitted herewith as ANNEXURE/1. Prayer Looking to facts and circumstances of the case and above submissions, the applicant humbly prays that the Hon’ble Tribunal may kindly be pleased to allow miscellaneous application in the interest of justice.” 2. At the outset, Learned Authorized Representative (for short, Ld. AR) on behalf of the assessee has furnished before us a copy of Form-1 filed under sub-section (1) and undertaking under sub-section (4) of Section 91 of the Finance (No.2) Act, 2024 to make declaration under Direct Tax Vivad Se Vishwas Scheme, 2024 (VSVS, 2024). Copy of Form-1 submitted before us is extracted here under for reference: MA No.19/RPR/2025 (Arising out of ITA No. 542/RPR/2024) Satish Kumar Agrawal vs. ITO, Ward-1(3), Bhilai, Durg 4 MA No.19/RPR/2025 (Arising out of ITA No. 542/RPR/2024) Satish Kumar Agrawal vs. ITO, Ward-1(3), Bhilai, Durg 5 3. Based on the aforesaid submissions, Ld. AR contended that due to assessee’s failure in paying the legitimate taxes to settle the tax arrears under VSVS, 2024, Form 4 could not be issued by the designated authority of the revenue, therefore, the benefit of scheme could not be availed by the assessee and now the assessee wish to agitate his appeal which was treated as withdrawn on account of assessee’s wish to opt for VSVS. 4. In terms of the observations, Ld. AR drew out attention to the order passed for assessee’s appeal in ITA No. 542/RPR/2024 and had referred to the observations of the tribunal while passing the said order, according to which, the assessee has been granted with a liberty to pray for restoration of the subject appeal. Relevant observations of the tribunal are culled out as under: “8. Considering the aforesaid factual position, we dismiss the appeal as withdrawn. Before parting, we may herein observe that in case the order for full and final settlement of tax arrears in “Form 4” is not passed by the designated authority, then the assessee will remain at a liberty to seek restoration of the subject appeal.” 5. In terms of the aforesaid facts and circumstances and the prayer of the assessee, since the assesse was unable to complete the process of settling the tax arrears under VSVS, 2024 and the assessee wish to pursue the issues in appeal before us, the matter deserves to be re-called and fixed for regular hearing to decide the same on its merits. MA No.19/RPR/2025 (Arising out of ITA No. 542/RPR/2024) Satish Kumar Agrawal vs. ITO, Ward-1(3), Bhilai, Durg 6 6. Per contra, Ld. Sr. DR representing the revenue does not raise any objection to the request made by Ld. AR and has agreed, if the matter is re- called and decided on merits after hearing both the parties. 7. Having given a thoughtful consideration to the aforesaid contentions placed by both the parties, we are of the considered opinion that the appeal of the assessee bearing ITA No.542/RPR/2024 for AY 2018-19, which was dismissed as the assessee had applied for declaration under VSVS, 2024 scheme, however, due to assesses’ failure in paying the legitimate taxes, the option exercised by the assessee could not be reached to the logical conclusion, accordingly, Form-4 of VSVS, 2024, could not be issued by the revenue authorities. Be that as it may, since an opportunity to recall the subject appeal, as prayed for by filing of the present MA, was granted to the assessee by the tribunal vide order dated 22.01.2025 and the requisite circumstances for recalling of the appeal have arisen, therefore, the appeal of assessee deserves to be recalled. Accordingly, it is directed to re-call the appeal in ITA No. 542/RPR/2024 and fix for hearing on 29.07.2025, which is informed to both the parties in the open court. 8. The registry is directed to take necessary course of action in fixing of the aforesaid re-called appeal for fresh adjudication. 9. In result, the MA No. 19/RPR/2025 of the assessee is allowed. MA No.19/RPR/2025 (Arising out of ITA No. 542/RPR/2024) Satish Kumar Agrawal vs. ITO, Ward-1(3), Bhilai, Durg 7 Order pronounced in the open court on 09/07/2025. Sd/- (PARTHA SARATHI CHAUDHURY) Sd/- (ARUN KHODPIA) Ɋाियक सद˟ / JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER रायपुर / Raipur; िदनांक Dated 09/07/2025 Vaibhav Shrivastav आदेशकी Ůितिलिप अŤेिषत / Copy of the Order forwarded to : आदेशानुसार/ BY ORDER, (Senior Private Secretary) आयकर अपीलीय अिधकरण, रायपुर / ITAT, Raipur 1. अपीलाथŎ/ The Appellant- Satish Kumar Agrawal 2. ŮȑथŎ/ The Respondent- ITO, Ward-1(3), Bhilai, Durg 3. The Pr. CIT, Raipur (C.G.) 4. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, रायपुर/ DR, ITAT, Raipur 5. गाडŊ फाईल / Guard file. // सȑािपत Ůित True copy // "