Facts of the Case

The present appeal was filed by the assessee against the order of the learned Commissioner of Income Tax (Appeals), NFAC, passed under Section 250 of the Income Tax Act on 29.03.2024, whereby the appeal against levy of penalty under Section 270A of the Act was dismissed.

The penalty of Rs. 86,774/- was imposed under Section 270A of the Income Tax Act.

During the course of hearing before the Tribunal, an application was filed by the Authorized Representative of the assessee stating that the assessee had opted for settlement of the dispute under the Vivad Se Vishwas Scheme, 2024 and had paid the due taxes. Form No.3 had been issued by the Department.

It was submitted that for final settlement of the case, the assessee was required to furnish proof of withdrawal of the pending appeal before the specified authority.

 Issues Involved

  1. Whether penalty of Rs. 86,774/- under Section 270A was sustainable.
  2. Whether the assessee was entitled to benefit under Section 270(6).
  3. Whether immunity under Section 270AA(1) was applicable.
  4. Whether the appeal should be permitted to be withdrawn after opting for settlement under the Vivad Se Vishwas Scheme, 2024.

 Petitioner’s Arguments

The assessee raised the following grounds:

  • The CIT(A) erred in sustaining penalty of Rs. 86,774/- under Section 270A.
  • Bona fide explanations were offered during penalty proceedings and provisions of Section 270(6) were applicable.
  • Additions were disclosed by the assessee voluntarily during assessment proceedings.
  • The assessee was entitled to immunity under Section 270AA(1).
  • The order was contrary to facts, law and principles of natural justice.

Subsequently, during the hearing, the assessee submitted that she had opted for settlement under the Vivad Se Vishwas Scheme, 2024 and paid the requisite amount. Therefore, a request was made for withdrawal of the appeal.

 Respondent’s Arguments

The learned Senior Departmental Representative was consulted regarding the withdrawal request and expressed no objection to dismissal of the appeal as withdrawn in view of settlement under the Vivad Se Vishwas Scheme, 2024.

 Court Order / Findings

  • The assessee had opted for settlement of dispute under the Vivad Se Vishwas Scheme, 2024.
  • Due taxes had been paid.
  • Form No.3 had been issued by the Department.
  • For final settlement, withdrawal of appeal was required.

Considering the above and in view of no objection from the Revenue, the Tribunal permitted withdrawal of the appeal.

Accordingly, the appeal of the assessee was dismissed as withdrawn.

 Important Clarification

The Tribunal did not adjudicate the merits of penalty under Section 270A or the applicability of Section 270AA immunity. The dismissal was solely on account of voluntary withdrawal following settlement under the Vivad Se Vishwas Scheme, 2024.

The order therefore does not lay down any ratio on interpretation of Section 270A or immunity provisions, but reflects procedural closure pursuant to statutory dispute resolution.

Link to download the order -  https://www.mytaxexpert.co.in/uploads/1770886076_PRITIMISHRAALLAHABADVS.ACITCIR1ALLAHABAD2.pdf  

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