SHRI KRISHNA JEWELS PVT. LTD.,NEW DELHI V. DCIT, CENTRAL CIRCLE- 25, NEW DELHI

MA 56/DEL/2022

AI Insights

The case involves Shri Krishna Jewels Pvt. Ltd., which filed a Miscellaneous Application under section 254(2) of the Income Tax Act, challenging the Tribunal's earlier decision confirming a penalty for concealment of income. The penalty was originally imposed by the Assessing Officer following additions to the company's share capital, which were deemed unexplained. The company sought to rectify what it claimed was an apparent mistake by the Tribunal in not considering various citations that could have influenced the decision. The Tribunal, acknowledging the company's intent to settle under the VSV Scheme, decided to restore the substantive appeal, allowing the company a chance to resolve the matter under the scheme.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31625 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 08-11-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 14-03-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVINDER YADAV
• Keywords: Principle of natural justice
• Section: 254(2); 271(1)(c)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER MA No. 56/Del/2022 (Arising out of ITA No.6758/Del/2017) Assessment Year 2013-14 Shri Krishna Jewels Pvt. Ltd. C/o. Anil Jain DD & Co., 611, Surya Kiran Building, 19, K.G. Marg, New Delhi – 110 001 Vs. DCIT Central Circle – 25 New Delhi TAN/ PAN : AAECR 9232 N (Appellant) (Respondent) Applicant by: Shri Anil Jain, Adv. Respondent by: Shri Ravinder Yadav, Sr. D.R. Date of hearing: 29 11 2024 Date of pronouncement: 29 11 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M. : The Misc. Application dated 14.03.2022 has filed by the assessee under section 254(2) of the Act against the appellate order of the Tribunal dated 24.09.2021 under section 254(1) of the Act. 2. When the matter was called for hearing, the learned Counsel for the assessee submitted at the outset that the Tribunal has committed apparent mistake while confirming the penalty imposed by the Assessing Officer and endorsed by the CIT(A). The learned Counsel pointed out that additions were made amounting to Rs.50,00,000/- towards increase in share capital in the quantum proceedings. Based on such additions, the penalty under section 271(1)(c) of the Act was imposed by the Assessing Officer alleging concealment of particulars of income. The penalty so imposed was challenged before the CIT(A). The CIT(A) confirmed the action of the AO however, based on the affirmation MA No.56/Del/2022 Shri Krishna Jewels Pvt. Ltd. vs. DCIT A.Y. 2013-14 2 ‘concealment’/inaccurate particulars of income. The assessee further challenged the action of the CIT(A) before the ITAT. The ITAT while confirming the order has not considered various citation filed by the assessee while determining the issue against the assessee. Hence, the captioned Misc. Application has been moved before the Tribunal. It was submitted that the assessee seeks to settle the matter under the VSV Scheme for which an affidavit dated 21.11.2024 was filed. The learned Counsel thus submitted that the Misc. Application should be allowed in the present circumstances where the mistake has been committed by the Tribunal and the assessee is willing to settle the matter not intend the mistake so committed. The learned Counsel pleaded that restoration of substantive appeal would provide fair chance to assessee to avail the VSV Scheme and align with principles of natural justice. 3. The learned DR for the Revenue on the other hand submitted that the Tribunal has passed reasoned order and therefore the error if any, in the order of the Tribunal cannot be ordinarily rectified be under section 254(2) of the Act but however, where the assessee chooses to prefer the VSV Scheme, the Revenue leaves the matter to the wisdom of the Tribunal. 4. We have perused the case records and different orders passed in the quantum proceedings as well as the penalty proceedings. The assessee seeks to demonstrate that the order passed by the Tribunal while confirming the penalty do not accord with the position of law laid down in various judgments. In the same vain, assessee seeks to avail or going VSV Scheme to avoid prorogated litigation. An affidavit to this effect filed by the Director of the assessee is reproduced hereunder: “I Karan Singh Soni S/O Sh. Roop Chand Soni, R/O 65/37, New Rohtak Road, Karol Bagh, New Delhi, do hereby solemnly affirm and declare on oath as under: 1. That I am the director of M/s SHRI KRISHNA JEWELLS PRIVATE LIMITED, having office at 3513 GROUND FLOOR, BANK STREET, PYARE LAL ROAD, KAROL BAGH, NEW DELHI-110005. MA No.56/Del/2022 Shri Krishna Jewels Pvt. Ltd. vs. DCIT A.Y. 2013-14 3 2. That the above said company filed an appeal against the penalty imposed by Ld. AO u/s 271(1)(C) and sustained by CIT(A) before the Hon'ble ITAT for AY 2013-14 vide appeal No. ITA/6758/DEC/2017. 3. That the above said appeal was disposed off by the Hon'ble ITAT vide order dated 24.09.2021 where in the penalty-imposed u/s 271(1)(C) on the addition of Rs. 50 Lacs on account of increase in share application money/ share capital was sustained. And the penalty-imposed u/s 271(1)(C) on the addition of Rs. 3,11,306/-on account of disallowance of property Tax was deleted. 4. That now I hereby undertake on behalf of the above said company that company will file an application under vivad se vishwas scheme if the MA No. 56/DEL/2022 filed against the old Appeal No. ITA/6758/DEC/2017 is allowed and this old appeal is restored to enable the company to file the application under vsvs.” 5. Hence, in the light of the affidavit filed and other attendant circumstances, it would be apt to restore the substantive appeal in the penalty proceedings in ITA No.6758/Del/2017 in token of the promise for availing VSV Scheme. 6. In the result, the Misc. Application filed by the assessee is allowed in above terms. Order pronounced in the open Court on 29/11/2024. Sd/- Sd/- [VIMAL KUMAR] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 29/11/2024 Priti Yadav, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar "