The Bengaluru Bench of the Income Tax Appellate Tribunal (ITAT), held that Revision proceedings cannot be initiated when assessee has opted to settle dispute under DTVSV scheme.
The assessee,Pavan Kandkur filed the return of income for Assessment Year 2017-18 declaring a total income of Rupees one lakh. The case was selected for complete scrutiny under CASS for and especially verifying the cash deposits during the demonetization period and notice under Section 143(2) of the Income Tax Act, 1961.The Assessing Officer (AO) noticed certain discrepancies on perusal of the details furnished by the assessee. There was a difference of Rupees eleven lakhs noticed by the AO in the closing cash balance of the assessee.
Accordingly, the AO treated a sum of Rupees ninety-two thousand as unaccounted cash credit under Section 68 of the Income Tax Act and applied tax rate under Section 115BBE of the Income Tax Act. The Principal Commissioner of Income Tax (PCIT) initiated revision proceedings.
The assessee submitted that he has applied for the Direct Tax Vivad Se Viswas (DTVSV) scheme and has filed a letter before the CIT(A) for withdrawal of his appeal filed against the order passed under Section 143(3) of the Income Tax Act. The assessee further submitted that the AO has already examined the details pertaining to the cash deposits during the assessment proceedings and has made the impugned addition by application of his mind.
A Bench consisting of N.V. Vasudevan, Vice President and Padmavathy S, Accountant Member observed that “In the given casethe PCIT has initiated the revision proceedings u/s.263 of the Income Tax Act on the same issue for which the assessee has already opted for DTVSV. It is also noticed the assessee has filed the necessary forms under the DTVSV scheme which have been accepted.
“In our considered view the decision of the Madras High Court is clearly applicable to the assessee’s case. Accordingly, we hold that the PCIT is not justified in initiating the impugned proceedings under Section 263 of the Income Tax Act when the assessee has opted to settle the dispute under DTVSV scheme” the Tribunal ruled.
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