Rejection of Appeal without considering Settlement through VSVS Scheme: ITAT orders fresh adjudication by CIT(A) [Read Order]
![Rejection of Appeal without considering Settlement through VSVS Scheme: ITAT orders fresh adjudication by CIT(A) [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/11/Appeal-VSVS-Scheme-ITAT-taxscan.jpeg "Rejection of Appeal without considering Settlement through VSVS Scheme: ITAT orders fresh adjudication by CIT(A) [Read Order]")
In a recent ruling, the Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that, the Commissioner of Income Tax (Appeals) [CIT(A)] has erred in rejecting an appeal without due consideration of the facts and merits of the case as only a part of the case was settled through the Vivad Se Vishwas Scheme 2020. The CIT(A) was thus directed to adjudicate on the grounds raised...
In a recent ruling, the Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that, the Commissioner of Income Tax (Appeals) [CIT(A)] has erred in rejecting an appeal without due consideration of the facts and merits of the case as only a part of the case was settled through the Vivad Se Vishwas Scheme 2020. The CIT(A) was thus directed to adjudicate on the grounds raised before him regarding the merits of imposition of penalty under Section 271D of the Income Tax Act, 1961.
The assessee is a medical practitioner by profession. For the assessment year 2017-2018, the return of income was filed declaring total income at Rs.1,00,39,030. The assessment was completed under Section 143(3) of the Income Tax Act, 1961 determining total income of Rs.1,01,68,982. In the said assessment order, the Assessing Officer had made an observation that the assessee had received cash of Rs.50,00,000 on entering into a sale agreement of a property and portion of the same was deposited to the bank account of the assessee during the demonetisation period.
The Assessee has submitted that the matter has been settled through Vivad Se Vishwas Scheme 2020 (VSVS 2020), during the course of the appellate proceedings.
The bench comprising Accountant Member Padmavathy S and Judicial Member George George K observed that, the assessee in the instant case has only settled the matter under VSVS 2020 insofar as the issues that are raised in the appeal filed as against the assessment and that the assessee has not settled the penalty imposed under Section 271D of the Income Tax Act under VSVS 2020.
In other words, the penalty proceedings under Section 271D is unconnected with the assessment order passed under Section 143(3), as the said penalty has been imposed under Section 269SS of the Income Tax Act.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
