SIDDHESHWAR DEVELOPERS AND CONTRACTORS,BADLAPUR V. INCOME TAX OFFICER, WARD - 2(2), KALYAN, KALYAN

ITA 378/MUM/2025

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The case involves Siddheshwar Developers and Contractors, the appellant, contesting an addition made to their income for the Assessment Year 2016-17 by the Income Tax Officer, the respondent. The addition was related to a long-term capital gain (LTCG) from a transaction for which the income tax had already been paid in Assessment Year 2015-16. The appellant had opted for the Direct Taxes Vivad Se Vishwas Scheme 2024, settling the tax for the earlier year. The primary legal issue was whether the same transaction could be taxed again in a subsequent assessment year after it had been settled in the earlier year under the Vivad Se Vishwas Scheme.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712735 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN KANTI DATTA
• Assessee Lawyers: V. G. GINDE
• Section: 148

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI (JUDICIAL MEMBER) AND SHRI GIRISH AGRAWAL (ACCOUNTANT MEMBER) I.T.A. No. 378/Mum/2025 Assessment Year: 2016-17 Siddheshwar Developers and Contractors Lolap House, Gandhi Chowk, Kulgaon, Badlapur(E), Mumbai-421503 PAN: AAEPB8387M Vs. Income Tax Officer, Ward- 2(2), Kalyan 1st Floor, Mohan Plaza, Wayale Nagar, Khadakpada, Kalyan(West), Mumbai- 421306 (Appellant) (Respondent) Appellant by Shri V.G.Ginde Respondent by Shri Arun Kanti Datta, CIT D.R. Date of Hearing 03.07.2025 Date of Pronouncement 29.07.2025 ORDER Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 29/11/2024 passed by NFAC, Delhi for assessment year 2016-17. 2.1 At the outset Ld.AR submitted that the assessee opted to settle the tax for AY 2015-16 under Direct Taxes Vivad Se Vishwas Scheme 2024. Pursuant to which form No. 1 was filed Printed from counselvise.com 2 ITA No. 378/Mum/2025; A.Y. 2016-17 Siddheshwar Developers and Contractors on 16.01.2025 and the settlement was completed on 11.04.2025 by issuing Form No. 4. The Ld.AR relied on the order giving effect to VSV 2024 for AY 2015-16 on 20.06.2025 which is placed on record. The Ld.AR thus pleaded that the same transaction cannot be once again taxed for A.Y. 2016-17, being the year under consideration. 2.2 The Ld.AR submitted that the first appellate authority dismissed assessee’s appeal for A.Y. 2016-17, being the year under consideration because income tax pertaining to LTCG arising from transactions was fully paid on 30/04/2022 for AY 2015-16 and therefore assessee didn’t pay the taxes on the same that was once again added during the AY 2016-17. Ld.CIT(A) invoked section 249(4)(b) of the Act and dismissed the appeal filed by the assessee for AY 2016-17 in limine on the ground that assessee didn’t pay any advance tax for the year. 3. Ld.AR submitted that there is no dispute that entire sale consideration that led to long term capital gain was tax received in the year 2015-16. The Ld.AO reopened the assessment for the assessment year 2015-16 by issuing a notice u/s 148 for the very same transaction based on the deed of the convenience dated 09.04.2015. 3.1 Considering the above facts it is noted that the transaction has been settled by way of Vivad Se Vishwas Scheme 2024 for AY 2015-16 as the sale consideration was received during A.Y. 2015- 16. The only event that occurred during the relevant year under consideration was that the deed of conveyance was executed by the assessee. As the amount has been now settled by the assessee in VSV for AY 2015-16, no addition can be further be Printed from counselvise.com 3 ITA No. 378/Mum/2025; A.Y. 2016-17 Siddheshwar Developers and Contractors made on the same transaction in the subsequent assessment year. 3.2 We therefore, considering the totality of the facts direct the Ld.AO to delete the addition made for AY 2016-17. However liberty is granted to the revenue to file miscellaneous petition if any thing contrary to the above facts could be placed on record. Accordingly the ground raised by the assessee stands allowed. In the result the appeals filed by the assessee stands allowed. Order pronounced in the open court on 29/07/2025 Sd/- Sd/- (GIRISH AGRAWAL) (BEENA PILLAI) Accountant Member Judicial Member Mumbai: Dated: 29/07/2025 Disha Raut, Stenographer Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order (Asstt.Registrar) ITAT, Mumbai Printed from counselvise.com "