Summary of ITA No. 852/Del/2022: A Landmark Judgment

In the case number ITA 852/DEL/2022, the appellant, Smt. Santosh of Rohtak faced off against the Income Tax Officer (ITO), Ward-4, Rohtak, concerning the assessment year 2011-12. The Income Tax Appellate Tribunal, Delhi Bench ‘G’, comprising of SH. ANIL CHATURVEDI, Accountant Member, and SH. ANUBHAV SHARMA, Judicial Member, delivered a judgment that has resonated within tax circles and amongst tax professionals for its depth and implications.

Background of the Case

The genesis of this case lies in an appeal filed by the assessee against an order dated 01.04.2022 for the AY 2011-12 passed by the National Faceless Appeal Centre (NFAC), New Delhi. This appeal was in response to the assessment order dated 21/05/2019 under section 271(1)(c) of the Income Tax Act, 1961, executed by the ITO, Ward-4, Rohtak.

The bones of contention in this case were manifold, but central to the appeal was the application of the Vivad Se Vishwas Scheme without the submission of Form No.1, leading to a mishandling of the appellate process.

Grounds of Appeal

The appellant raised several grounds, highlighting errors in both facts and law. The foremost grievance was the incorrect application of the Vivad Se Vishwas Scheme by the learned Commissioner of Income Tax (Appeals). According to the appellant, no documentation was submitted to avail of the scheme, thereby rendering the appellate decision erroneous, illegal, and excessively punitive.

Further grievances were related to procedural inaccuracies, including the wrongful assumption of the appellant’s withdrawal from the appeal. These procedural lapses pointed towards a significant oversight by the appellate authority, necessitating a reevaluation of the case.

Judgment and Implications

The Tribunal, after a thorough examination of the records and arguments, identified a critical error in the disposal of the case by the NFAC. It was found that the appeal was unjustly dismissed as withdrawn under the Vivad Se Vishwas Scheme, despite no such action or instruction from the assessee. Consequently, the Tribunal allowed the appeal, directing the First Appellate Authority to issue a fresh order under section 250 of the Act.

This ruling is a landmark judgment for several reasons. Firstly, it underscores the importance of adhering to procedural norms and legal stipulations, ensuring justice and fairness in the appellate process. Secondly, it highlights the Tribunal’s role in correcting miscarriages of justice, serving as a reminder of the appellate authorities’ responsibility towards judicious and lawful conduct.

Conclusion

The case of ITA 852/DEL/2022 is a testament to the resilience of the legal system in upholding rights and ensuring that justice prevails. The decision has been hailed as a victory for the taxpayer, setting an important precedent for similar cases in the future. It raises critical questions about procedural integrity and the respectful adherence to legal provisions, thus enriching the tapestry of Indian tax jurisprudence.

Victory for Taxpayer in Case Against Income Tax Officer, Rohtak