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Registry shall not insist on filing of an application for condonation of delay under Vivaad se Vishwas scheme.


Court :
ITAT Mumbai

Brief :
These appeal are filed by the assessee against different orders of the Learned Commissioner of Income Tax (Appeals)–24, Mumbai [hereinafter in short “Ld.CIT(A)”] dated 12.02.2029 for the A.Ys. 2014-15 and 2015-16.

Citation :
ITA 2178/MUM/2019



ITA NOs. 2176 & 2178/MUM/2019
(A.Ys: 2015-16 & 2014-15)

M/s. Carol Info Services Limited
6th Floor, Wockhardt Towers
Bandra Kurla Complex, Bandra(E)
Mumbai - 400051

ACIT – 15(1)(2)

Assessee by : None
Department by : Ms. Shreekala Pardeshhi

Date of Hearing : 11.02.2021
Date of Pronouncement : 11.02.2021



1. These appeal are filed by the assessee against different orders of the Learned Commissioner of Income Tax (Appeals)–24, Mumbai [hereinafter in short “Ld.CIT(A)”] dated 12.02.2029 for the A.Ys. 2014-15 and 2015-16.

2. Assessee filed a letter dated 09th February, 2021 through mail and submitted as under: -

“Re: Carol Info Services Limited ('Carol' or 'the appellant') PAN: AAACW1299E

Assessment Year 2014-15 and 2015-16 ITA Nos. 2176/M/2019 and 2178/M/2019

Sub:- Request for adjournment

Respected Sirs,

We refer to hearing of the aforesaid appeals scheduled before Your Honours on 11 February 2021. In this connection, we wish to mention that we have filed application under the Direct Tax Vivad Se Vishwas Act, 2020 ('DTVSV') in Form 1 and Form 2 and are awaiting Form 3. Copies of applications filed under DTVSV for AY 2014-15 and 2015-16 are enclosed for your Honour's ready reference.

In view of the same, we request your Honour to adjourn the hearing of the captioned appeals and schedule the same for hearing at a later date.

The inconvenience caused to Your Honours is regretted.

We hope your Honour would accede to our request and oblige.”

3. On a perusal of the above letter of the assessee it is noticed that assessee has already filed declaration and undertaking in Form-1 & 2 and Form-3 accepting the declaration and undertaking filed by the assessee is awaited from the Revenue. Thus, since assessee has opted to settlelitigation under Vivaad se Vishwas scheme no purpose would serve keeping these appeal pending.

4. The Hon'ble Madras High Court in the case of M/s. Nannusamy Mohan (HUF) v. ACIT in T.C.A. No. 372 of 2020 dated 16.10.2020 on an appeal by the assessee u/s. 260A of the Act, held as under: - “This appeal has been filed by the assessee under Section 260 A of the Income Tax Act, 1961 ('the Act' for brevity), challenging the order dated 03.12.2018 passed by the Income Tax AppellateTribunal, Chennai, 'A' Bench ('the Tribunal' for brevity) inI.T.A.No.2576/CHNY/2017 for the Assessment Year 2011-12. The appeal is admitted on the following Substantial Questions of Law:

“1. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was perverse in not considering all the grounds raised in Cross Objection, viz. (1) claim of exemption in respect of sale of agricultural land (2) claim of deduction by way of cost inflation Index and cost ofplot of land purchased in computing deduction u/s.54F of Income Tax Act?

2. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in upholding the disallowance of cost of improvement in providing Modern Kitchen in the flats purchased?”

2. We have heard Mr.M.P.Senthil Kumar, learned counsel appearing for the appellant/assessee and Mr.T.R.Senthil Kumar, learned Senior Standing counsel and M/s.K.G.Usha Rani, learned counsel for the respondent/Revenue.

3. The learned counsel for the appellant / assessee, on instructions, submitted that the appellant / assessee intends to avail the benefit of Vivad Se Vishwas Scheme ('VVS Scheme' for brevity) and in this regard, the assessee is taking steps to file the application / declaration in Form No.I.

4. It may not be necessary for this Court to decide the Substantial Questions of Law framed for consideration on account ofcertain subsequent developments. The Government of India enactedthe Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) to provide  for resolution of disputed tax and for matters connected therewith or incidental thereto. The Act of the Parliament received the assent of the President on 17th March 2020 and published in the Gazette of India on 17th March 2020.

5. In terms of the said Act, the assessee has been given an option to put an end to the tax disputes, which may be pending atdifferent levels either before the First Appellate Authority or before the Tribunal or before the High Court or before the Hon'ble Supreme Court of India. Under Section 2(j) “disputed tax” has been defined. In terms of Section 3, where a declarant means a person, who files a declaration under Section 4 on or before the last date files adeclaration to the designated authority in accordance with the provisions of Section 4 in respect of tax arrears, then, notwithstanding anything contained in the Income Tax Act or anyother law for the time being in force, the amount payable by the declarant shall be determined in terms of Section 3(a-c) thereunder.

6. The First Proviso to Section 3 states that in case, where an Appeal or Writ Petition or Special Leave Petition is filed by the Income Tax authority on any issue before the Appellate Forum, the amount payable shall be one-half of the amount in the table stipulated in Section 3 calculated on such issue, in such a manner as may be prescribed. The second proviso deals with the cases, where thematter is before the Commissioner (Appeals) or before the DisputeResolution Panel. The third proviso deals with cases, where the issueis pending before the Income Tax Appellate Tribunal. The filing ofthe declaration is as per Section 4 of the Act and the particulars to be furnished are also mentioned in the Sub Sections of Section4. Section 5 of the Act deals with the time and manner of the payment and Section 6 deals with Immunity from initiation of proceedings in respect of offence and imposition of penalty in certaincases. Section 9 of the Act deals with cases, where the Act 3 of 2020 will not be applicable.

7. As observed, the assessee is given liberty to restore this appeal in the event the ultimate decision to be taken on the declaration to be filed by the assessee under Section 4 of the saidAct is not in favour of the assessee. If such a prayer is made, theRegistry shall entertain the prayer without insisting upon any application to be filed for condonation of delay in restoration of the appeal and on such request made by the assessee by filing a Miscellaneous Petition for Restoration, the Registry shall place such petition before the Division Bench for orders.

8. In the light of the above, We direct the appellant / assesseeto file the Form No.I on or before 20.11.2020 and the competentauthority shall process the application / declaration in accordancewith the Act and pass appropriate orders as expeditiously as possiblepreferably within a period of six (6) weeks from the date on which the declaration is filed in the proper form.”

5. Following the above decision of the Hon'ble Madras High Court, these appeals are disposed off accordingly, with liberty to the assessee to file a miscellaneous application, in the event of either the assessee not opting for Vivaad se Vishwas scheme as contemplated by it before thedue date of the scheme in operation or in the event of the departmentnot accepting the application made by the assessee under the said scheme, the appeals of the assessee shall be recalled by the Tribunal andrestored for adjudication on merits. It is further made clear that if theassessee seeks to restore the appeals in the event of assessee’s declaration made under Vivaad se Vishwas scheme is not accepted by the Revenue, the Registry shall not insist for filing of application forcondonation of delay, if the Miscellaneous Application for recalling theorder is filed beyond time on account of delayed communication of outcome under Vivaad se Vishwas scheme in view of the decision of the Hon'ble Madras High Court in the case of M/s. Nannusamy Mohan (HUF) v. ACIT in T.C.A. No. 372 of 2020 dated 16.10.2020. With these observations these appeals are dismissed as withdrawn.

6. In the result, appeals of the assessee are dismissed as observed above.

Order pronounced in the virtual court on 11.02.2021.

Sd/-                                                            Sd/-
(N.K. PRADHAN)                                      (C.N. PRASAD)

Mumbai / Dated 11/02/2021
Giridhar, Sr.PS

Copy of the Order forwarded to:
1. The Appellant
2. The Respondent.
3. The CIT(A), Mumbai.
4. CIT
5. DR, ITAT, Mumbai
6. Guard file.

//True Copy//

(Asstt. Registrar)



on 02 March 2021
Published in Income Tax
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