SHRI KALYANJI BHAGAT BY JAYANTILAL K. BHAGAT L/H,MUMBAI V. ASSTT. CIT-22(1), MUMBAI

MA 311/MUM/2025

AI Insights

The case involves a series of Miscellaneous Applications (MAs) filed by the assessee, Kalyanji Bhagat by Jayantilal K Bhagat Ltd., seeking the recall and restoration of appeals that were previously withdrawn. The withdrawals were based on the assessee's decision to resolve disputes under the Direct Tax Vivad Se Vishwas Scheme, 2020. However, since the application under this scheme was rejected, the Tribunal found it necessary to recall the earlier orders of withdrawal to ensure the assessee's rights were preserved and to provide a remedy following the principles of natural justice.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827246 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: misc
• Appeal Filed On: 17-11-2025
• Laws Referred To: Direct Tax Vivad Se Vishwas Scheme, 2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWAPNIL CHOUDHARY
• Assessee Lawyers: PARAS JAIN; GRANTING
• Keywords: Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘E’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER MA No.304/Mum/2025 (Arising out of ITA No.2033/Mum/2020) (Assessment Year :1983-84) MA No.305/Mum/2025 (Arising out of ITA No.2024/Mum/2020) (Assessment Year :1983-84) MA No.306/Mum/2025 (Arising out of ITA No.2034/Mum/2020) (Assessment Year :1984-85) MA No.307/Mum/2025 (Arising out of ITA No.2035/Mum/2020) (Assessment Year :1985-86) MA No.308/Mum/2025 (Arising out of ITA No.2026/Mum/2020) (Assessment Year :1985-86) MA No.309/Mum/2025 (Arising out of ITA No.2036/Mum/2020) (Assessment Year :1986-87) MA No.310/Mum/2025 (Arising out of ITA No.2027/Mum/2020) (Assessment Year :1986-87) MA No.311/Mum/2025 (Arising out of ITA No.2037/Mum/2020) (Assessment Year :1987-88) MA No.312/Mum/2025 (Arising out of ITA No.2028/Mum/2020) (Assessment Year :1987-88) Printed from counselvise.com MA No. 304/Mum/2025 and others Kalyanji Bhagat by Jayantilal K Bhagat Ltd., 2 MA No.313/Mum/2025 (Arising out of ITA No.2038/Mum/2020) (Assessment Year :1988-89) MA No.314/Mum/2025 (Arising out of ITA No.2029/Mum/2020) (Assessment Year :1988-89) MA No.315/Mum/2025 (Arising out of ITA No.2039/Mum/2020) (Assessment Year :1989-90) MA No.316/Mum/2025 (Arising out of ITA No.2030/Mum/2020) (Assessment Year :1989-90) MA No.317/Mum/2025 (Arising out of ITA No.4275/Mum/2019) (Assessment Year :2006-07) & MA No.318/Mum/2025 (Arising out of ITA No.2025/Mum/2020) (Assessment Year :1984-85) Kalyani G. Bhagat (By Jayantilal K Bhagat L/H) C/o. Tanuja Bhagat 2nd Floor, Jayant Arcade, Above Waman hari Pethe Jewellers M.G. Road, Rajawadi Mumbai – 400 077 Vs. Asst. Commissioner of Income Tax-Central-2 Mumbai PAN/GIR No.AASPB0885A (Appellant) .. (Respondent) Assessee by Shri Paras Jain Revenue by Shri Swapnil Choudhary Date of Hearing 09/01/2026 Date of Pronouncement 09/01/2026 Printed from counselvise.com MA No. 304/Mum/2025 and others Kalyanji Bhagat by Jayantilal K Bhagat Ltd., 3 आदेश / O R D E R PER AMIT SHUKLA (J.M): The present batch of Miscellaneous Applications has been preferred by the applicant-assessee seeking recall and restoration of the appeals which were earlier disposed of by this Tribunal as withdrawn, on the premise that the assessee had opted for resolution of disputes under the Direct Tax Vivad Se Vishwas Scheme, 2020. 2. At the time of disposal of the original appeals, this Tribunal, taking note of the statement made on behalf of the assessee regarding opting for the aforesaid dispute resolution scheme, had treated the appeals as withdrawn. However, while doing so, the Tribunal had consciously and expressly preserved the substantive rights of the assessee by granting liberty to seek restoration of the appeals, should the settlement under the said scheme not ultimately materialise. The relevant observation of the Tribunal, forming part of the original order, reads as under: “Accordingly, respectfully following the order above and noting the fact that the assessee is opting for resolution of dispute under VSVS scheme in the present cases, we treat these appeals being disposed of as withdrawn. The assessee is given liberty for restoration of appeals in accordance with paragraph 7 of the Hon’ble High Court as above. The counsel presents fairly agreed to the above proposition. In the result, the appeals by the assessee is disposed of by treating the same as withdrawn. Copy of this order be placed on each file.” Printed from counselvise.com MA No. 304/Mum/2025 and others Kalyanji Bhagat by Jayantilal K Bhagat Ltd., 4 3. It has now been brought to our notice that the application filed by the assessee under the Direct Tax Vivad Se Vishwas Scheme, 2020 has been rejected by the learned Principal Commissioner of Income Tax-20, and consequently, as on date, there exists no settlement or resolution of dispute under the said scheme. This subsequent development, which is neither disputed nor controverted by the Revenue, renders the very foundation on which the appeals were treated as withdrawn, non-existent. 4. In these circumstances, and in view of the express liberty granted by the Tribunal in its earlier order, we find complete justification and sufficient cause to recall the orders disposing of the appeals as withdrawn. The recall is not only in consonance with the principles of natural justice, but also imperative to ensure that the assessee is not rendered remediless merely on account of a settlement mechanism which, though invoked bona fide, ultimately did not fructify. 5. Accordingly, all the appeals arising out of the Miscellaneous Applications under consideration are hereby recalled and restored to their original numbers. The Registry is directed to list the appeals for fresh hearing on merits at the earliest, after due notice to the assessee, in accordance with law. Printed from counselvise.com MA No. 304/Mum/2025 and others Kalyanji Bhagat by Jayantilal K Bhagat Ltd., 5 6. In the result, all the Miscellaneous Applications filed by the assessee are allowed. Order pronounced on 9th January, 2026. Sd/- (VIKRAM SINGH YADAV) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 09/01/2026 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Printed from counselvise.com "