This document provides a detailed analysis of the Income Tax Appellate Tribunal’s final decision on the case between Singhal Fincap Ltd, Delhi and DCIT, Circle-37(2), New Delhi, concerning the assessment year 2016-17. The case number is ITA 2610/DEL/2022, presided over by Judicial Member Sh. Anubhav Sharma and Accountant Member Sh. Anil Chaturvedi.
The appeal filed by the assessee, Singhal Fincap Ltd, was directed against the order dated 18.08.2022 of the Commissioner of Income Tax (Appeals)-NFAC, Delhi, relating to Assessment Year 2016-17. The primary issue in this case was the dismissal of the appeal by CIT(A) based on the incorrect assumption that the assessee had opted for the Vivad Se Viswas Scheme (VSV) 2020.
During the hearing on 17.05.2023, the Revenue was represented by Shri Sujit Kumar, CIT – D.R., and the assessee was represented by Shri R. K. Kapoor, Adv. The Tribunal proceeded to adjudicate the appeal based on the materials on record and submissions made by both parties.
The grounds of appeal raised by the assessee were:
The assessee is a company that filed its original return of income for A.Y. 2016-17 on 27.07.2016, declaring a total income of Rs.1,89,94,350/-. The case was reopened, and notice u/s 148 of the Act was issued on 31.03.2021, leading to the assessment framed u/s 147 r.w.s 144B of the Act, determining the total income at Rs.9,39,94,350/-. The assessee appealed to CIT(A), who dismissed the appeal, citing the assessee’s supposed opt-in to the VSV Scheme.
The Tribunal noted that the CIT(A)’s dismissal was based on a factual inaccuracy regarding the assessee’s participation in the VSV Scheme. The assessee’s representative, Learned AR, contended that this finding was incorrect, and the CIT(A) had not decided the issue on its merits. The Revenue did not provide any material evidence to counter this claim.
The Tribunal found merit in the assessee’s contention that the CIT(A) had incorrectly dismissed the appeal based on an erroneous assumption. The Tribunal decided that the issue required a re-adjudication on its merits and thus restored the appeal to the file of CIT(A), directing the CIT(A) to decide the appeal on merits in accordance with the law, ensuring adequate opportunity of hearing to both parties.
Order pronounced in the open court on 23rd May, 2023.
(ANIL CHATURVEDI)
ACCOUNTANT MEMBER
(ANUBHAV SHARMA)
JUDICIAL MEMBER
This case highlights the importance of accurate factual findings in judicial proceedings and ensures that appeals are decided based on their merits rather than procedural misunderstandings. The decision underscores the need for thorough verification of claims, especially regarding schemes like the VSV.
The appellant, Singhal Fincap Ltd, challenged the addition made by the AO under section 147 r.w.s 144B of the Income Tax Act, 1961, for the assessment year 2016-17. The CIT(A) dismissed the appeal, citing the assessee’s supposed opt-in to the VSV Scheme, which was factually incorrect.
The appellant argued that the CIT(A)’s finding regarding their participation in the VSV Scheme was incorrect. They asserted that the CIT(A) did not address the substantive issues raised in the appeal on their merits.
The Tribunal observed that the CIT(A) dismissed the appeal based on an erroneous factual finding. The Tribunal found no material evidence from the Revenue to support the claim that the appellant had opted for the VSV Scheme. Consequently, the Tribunal decided to remand the case back to the CIT(A) for a decision on its merits.
The Tribunal’s decision in the case of Singhal Fincap Ltd, Delhi vs DCIT, Circle-37(2), New Delhi, reaffirms the importance of addressing the substantive merits of a case rather than relying on procedural assumptions. The restoration of the case to the CIT(A) for a fresh decision ensures a fair and just resolution based on accurate facts.
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