SHASHIKALA VINAYKUMAR,MANGALURU V. ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 1 (1) AND TPS MANGALORE , MANGALURU

ITA 8/BANG/2025

AI Insights

The case involves Shashikala Vinaykumar, an individual and director of M/s Yojaka India Pvt Ltd, who appealed against the order of the CIT(A) for the assessment years 2012-13 and 2014-15. The primary issue was the disallowance of deductions claimed against her salary income, which were initially allowed by the Assessing Officer but later disallowed due to lack of adequate justification or legal basis. The CIT(A) dismissed her appeal, noting multiple opportunities were given to clarify her position and submit relevant documents, including those related to the Vivad se Vishwas scheme. The Tribunal found that the assessee did not complete the necessary procedural formalities under the VsV scheme, leading to the dismissal of her appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312237 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUBRAMANIAN S
• Assessee Lawyers: VANAJA R
• Keywords: Reassessment proceedings; Salary income

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA No.7-8/Bang/2025 Assessment Years : 2012-13 & 2014-15 Shashikala Vinaykumar, 503, Sheshkamal Matadakani Cross Road, Gandhinagar, Mangalore. PAN – AAIPV 2319 P Vs. The Asst. Commissioner of Income Tax, Circle – 1(1), Mangalore. APPELLANT RESPONDENT Assessee by : Shri Vanaja R, Advocate Revenue by : Shri Subramanian S, JCIT (DR) Date of hearing : 20.02.2025 Date of Pronouncement : 30.04.2025 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: These appeals filed by the assessee are against the order passed by the CIT(A) for the assessment years 2012-13 and 2014-15. 2. At the outset, we note that the issues involved for both the assessment years (i.e. A.Y. 2012-13 and 2014-15) under dispute are identical. Hence, for the purpose of adjudication, we decided to club both the appeals together and proceed to adjudicate the issue for A.Y. 2012-13 which will apply to the appeal raised for A.Y. 2014-15 also. ITA No.07&08/Bang/2025 Page 2 of 5 . 3. The relevant facts are that the assessee is an individual and director of the company namely M/s Yojaka India Pvt Ltd. The assessee has drawn salary of Rs. 80,67,990/- from the said company. Against the salary income the assessee has claimed deduction under section 10(14), 10(14)(i), 57(iii) of the Act as well as under unanimous section for the amount of Rs. 13000/-, Rs. 15000/-, Rs. 10,05,292/- and Rs. 8,67,431/-. Due to the fact that the assessee claimed deduction under an unspecified section of the Act, the assessment was reopened under 147 r.w.s. 148 of the Act. Finally, the assessment came to be finalized by the AO disallowing the above-mentioned claim of deduction aggregating to Rs. 19,00,723/- only. 4. The aggrieved assessee preferred an appeal before the learned CIT(A) who dismissed the appeal of the assessee by observing as under: During the course of the appellate proceedings, notices of hearing were issued to the appellant on 23.01.2021 and 14.02.2024 hearing date fixed on 08.02.2021 and 26.02.2024 respectively. She responded on 08.03.2024 in response to the notices issued. The appellant submitted vide submission dated 29.01.2021 that she had opted to settle its taxes under the Vivad se Vishwas (VsV) scheme and attached written submission however as per information on ITBA date of form-3 had been issued on date15.03.2021. Written submission and various judgments are pasted below for ease of convenience. ********* 6. Further, as per provisions of S.4 of The Direct Tax Vivad Se Vishwas Act, 2020, “4. (2) Upon the filing the declaration, any appeal pending before the Income Tax Appellate Tribunal or Commissioner (Appeals), in respect of the disputed income or disputed interest or disputed penalty or disputed fee and tax arrears shall be deemed to have been withdrawn from the date on which certificate under sub- section (1) of section 5 is issued by the designated authority.” 7. She has been given notices and letter to submit VsV related all forms and withdrawal letter but she has failed to submit till date. After referring to the sub para 4 of the para-1 of written submission the appellant had opted VsV and paid tax against PAN instead TAN due to which further processing of Form- 4 and Form-5 is under process, however as per ITBA Form-3 generation date is showing on ITBA as 15.03.2021. The fact that appellant is indicated that ITA No.07&08/Bang/2025 Page 3 of 5 . appellant had opted for VsV scheme as corroborated by the Form -3 information available on ITBA and submission of appellant. 5. Being aggrieved by the order of the learned CIT(A), the assessee is in appeal before us. 6. The learned AR before us submitted that the issue on hand has already been settled under VSV Scheme. Therefore, the assessee wishes to withdraw the appeal. 7. On the other hand, the learned DR before us agreed with the submission of the ld. AR of the assessee. As per the ld. DR, the fact of dismissal the appeal of the assessee under VSV Scheme is arising from the order of the ld. CIT-A. 8. We have heard the rival contentions of both the parties and perused the materials available on record. From the preceding discussion, we find that the core issue under adjudication pertains to the disallowance of deductions aggregating to ₹19,00,723/- only claimed by the assessee against her salary income. These deductions were claimed under sections 10(14), 10(14)(i), 57(iii), and an unspecified section of the Income Tax Act. The assessee, being a director of M/s Yojaka India Pvt Ltd, had drawn a substantial salary during the relevant assessment years. It is noted that the invocation of reassessment proceedings under section 147 r.w.s. 148 was solely triggered by the assessee’s vague and unsubstantiated claims of deductions, including one under an unidentified provision. ITA No.07&08/Bang/2025 Page 4 of 5 . 9. The AO, having found no adequate justification or legal basis for the deductions claimed, proceeded to disallow the entire amount. Subsequently the learned CIT(A), who also recorded that multiple opportunities were granted to the assessee to clarify her position and submit relevant documents, including forms related to the Vivad se Vishwas (VsV) scheme. While the assessee had indicated an intention to settle the dispute under the VsV scheme and even produced written submissions to that effect, there was a failure to complete the necessary procedural formalities, particularly the submission of withdrawal letters and final forms as per the scheme's requirements. 10. As per section 4(2) of the Direct Tax Vivad Se Vishwas Act, 2020, once the declaration is filed and the certificate under section 5(1) is issued, any pending appeal is deemed to be withdrawn. However, in the present case, although Form-3 was generated on 15.03.2021, no evidence of submission of Form-4 or Form-5, or any formal communication of withdrawal of appeal, has been placed on record. This procedural non-compliance implies that the conditions for deemed withdrawal under the VsV scheme were not fulfilled. Consequently, the appellate proceedings continued to be validly adjudicated. 11. In view of the above, and in absence of any substantive evidence to support the claims of deductions or to demonstrate full compliance with the VsV scheme, the Tribunal finds no reason to interfere with the order passed by the ld. CIT(A). The disallowance made by the Assessing Officer is found to be in accordance with law and is hereby upheld. Hence, the ground of appeal of the assessee is dismissed. ITA No.07&08/Bang/2025 Page 5 of 5 . 12. In the result, the appeal filed by the assessee stands dismissed. Order pronounced in court on 30th day of April, 2025 Sd/- Sd/- (SOUNDARARAJAN K) (WASEEM AHMED) Judicial Member Accountant Member Bangalore Dated, 30th April, 2025 / vms / Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore "