Case Law Details
Pricewaterhouse Coopers Pvt. Limited Vs DCIT (ITAT Kolkata)
ITAT Kolkata held that dismissal of assessment order passed under section 143(3) on erroneous reasoning that dispute was resolved via Vivad Se Vishwas Scheme. Fresh adjudication directed to decide all the appeals on merits.
Facts- The assessee has filed a number of appeals before the CIT(A). However, CIT(A) dismissed its appeal on the ground that assessee has settled the dispute under the Vivad Se Vishwas Scheme. Accordingly, the appellant has explained in details of impugned orders and how these orders are not sustainable.
Conclusion- The assessee has contended that it has challenged the assessment order dated 27.03.2015 passed under section 143(3) of the Income Tax Act before the ld. CIT(Appeals) and this appeal before the ld. CIT(Appeals) emanates from the assessment order, whereas the assessee has resolved the dispute under VSV regarding a penalty imposed under section 271(b) for non-compliance of some notice or non appearance of the assessee. It was a penalty of Rs.10,000/-, which was resolved by the assessee under the VSV. The ld. Commissioner erroneously construed that certificate as an evidence for resolving the dispute qua the demand raised vide assessment order passed under section 143(3) of the Income Tax Act. The ld. D.R. was unable to controvert these facts.
On due consideration of the above circumstances, we are of the view that impugned orders are not sustainable. The ld. CIT(Appeals) is required to decide all these appeals on merit instead of dismissing them on the ground that assessee has availed the benefit of Vivad Se Vishwas Scheme. Therefore, all these issues are relegated to the ld. 1st Appellate Authority for fresh adjudication in each appeal.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
Apart from ITA No. 404/KOL/2022, the assessee has filed an application for out of turn hearing in ITA Nos. 623-627/KOL/2022. In the application, the assessee has explained the details of impugned orders and how these orders are not sustainable. Its application is self-explanatory exhibiting the details of impugned order, details of the ld. Assessing Officer and how ld. CIT(Appeal) has committed an error by dismissing its appeal on the ground that assessee has settled the dispute under the Vivad Se Vishwas Scheme. In order to appreciate all these aspects, we deem it appropriate to take note the relevant part of the application of the assessee, which reads as under:-
2. As far as ITA No. 404/KOL/2022 is concerned, the assessee has challenged the order of ld. CIT(Appeals) dated 16.05.2022 passed for A.Y. 2012-13. The ld. Commissioner has dismissed the appeal of the assessee on the ground that it has opted for Vivad Se Vishwas Scheme and resolved the dispute with the Department under that Scheme. The assessee has contended that it has challenged the assessment order dated 27.03.2015 passed under section 143(3) of the Income Tax Act before the ld. CIT(Appeals) and this appeal before the ld. CIT(Appeals) emanates from the assessment order, whereas the assessee has resolved the dispute under VSV regarding a penalty imposed under section 271(b) for non-compliance of some notice or non appearance of the assessee. It was a penalty of Rs.10,000/-, which was resolved by the assessee under the VSV. The ld. Commissioner erroneously construed that certificate as an evidence for resolving the dispute qua the demand raised vide assessment order passed under section 143(3) of the Income Tax Act. The ld. D.R. was unable to controvert these facts.
3. On due consideration of the above circumstances, we are of the view that impugned orders are not sustainable. The ld. CIT(Appeals) is required to decide all these appeals on merit instead of dismissing them on the ground that assessee has availed the benefit of Vivad Se Vishwas Scheme. Therefore, all these issues are relegated to the ld. 1st Appellate Authority for fresh adjudication in each appeal.
4. In the result, all the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in the open Court on 19th January, 2023.
Author Bio
