The Kolkata bench of Income Tax Appellate Tribunal (ITAT) recently while giving relief to Price water house Coopers Pvt. Limited directs the first appellate authority to re-adjudication on income tax penalty cases.
K.M. Gupta, Bikash Jain, and Pulkit Chhajer, are appeared on behalf of the assessee and Vijay Kumar,additional commissioner of income tax appeared on behalf of the Revenue
Assessee Pricewaterhouse Coopers Pvt. Limited filed a number of appeals before the Commissioner of Income tax appeal. But which was not considered due to the company that has opted dispute resolution under the direct tax vivad se viswas scheme(VSV) against the matters included in the appeal. Against the order assessee filed an appeal before the ITAT.
Counsel for the revenue contented that assessee opted Vivad Se Vishwas Scheme and resolved the dispute with the Department under that Scheme hence the appeal of the assessee was dismissed.
Counsel for the assessee contended that assesee challenged the assessment order passed under section 143(3) of the Income Tax Act 1961 before the CIT(Appeals) and this appeal before the CIT(Appeals) emanates from the assessment order, whereas the assessee has resolved the dispute under VSV regarding a penalty imposed under section 271(b) Income Tax Act 1961 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.
Further assesses state that they have not opted the VSV scheme for adjudication of the dispute.
After considering the both contention the division bench of the ITAT compraising Shri Rajpal Yadav , (Vice-President) and Girish Agrawal, (Accountant Member) allowed the appeal filed by the assessee and held that the order of the CIT Appeals was not sustainable and direct the authority to re-adjudication of the matter
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