2022 (7) TMI 1392 - AT - Income Tax

Revision u/s 263 by CIT - Addition u/s 69A - Assessee has submitted that the assessee has already opted to avail the Vivad-se-Vishwas Scheme 2020 - HELD THAT - In the present case, the assessee has opted to avail the Vivad-se-Vishwas Scheme 2020 and filed Form 1 and Form 2 on 10.11.2020 and subsequently Form 3 were issued to the assessee on 23.12.2020 by the Designated Authority and moreover, Form 4 was filed on 04.02.2021 for issuance of Form 5 and Form 5 was also issued and taxes paid accordingly, much before the revision order under section 263 of the Act was passed on 25.02.2021. Since the assessee could produce the above details of availing Vivad-se-Vishwas Scheme 2020 and the Designated Authority has already issued Form 5 during the course of revision proceedings, the ld. PCIT was not aware of the above facts. Thus we of the considered opinion that the revision order passed u/s 263 by the ld. PCIT cannot survive. Revision order passed under section 263 is quashed. Appeal filed by the assessee is allowed.

Summary

Issues:
1. Delay in filing the appeal before the Tribunal.
2. Assessment of capital gains on the sale of an immovable property.
3. Validity of the revision order passed under section 263 of the Act.
4. Applicability of Direct Tax Vivad-se-Vishwas Scheme 2020.

Analysis:

Issue 1: Delay in filing the appeal
The appeal filed by the assessee was delayed by 7 days. The assessee filed a petition for condonation of the delay, which was accepted as the assessee was prevented by sufficient cause. The delay was condoned, and the appeal was admitted for adjudication.

Issue 2: Assessment of capital gains
The assessee sold an immovable property and initially did not admit any income under the head 'Capital gain' for the relevant assessment year. After a notice was issued under section 148 of the Act, the assessee revised the income, admitting a taxable income that included capital gains. The Assessing Officer made additions to the income based on seized materials and a sworn statement. The Principal Commissioner of Income Tax (PCIT) found errors in the assessment, leading to the revision of the assessment order under section 263 of the Act.

Issue 3: Validity of the revision order
The PCIT noted discrepancies in the assessment related to the capital gains and directed the Assessing Officer to redo the assessment. However, the assessee had already opted for the Vivad-se-Vishwas Scheme 2020 and completed the necessary forms and payments before the revision order was passed. The Tribunal found that the order passed by the designated authority under the scheme was conclusive and final, preventing the Income-tax authorities from reopening the matter. As a result, the revision order under section 263 of the Act was quashed.

Issue 4: Applicability of Vivad-se-Vishwas Scheme 2020
The assessee had availed the Vivad-se-Vishwas Scheme 2020 and completed the required forms and payments before the revision order was issued. The Tribunal held that the order passed by the designated authority under the scheme was conclusive and final, preventing any further proceedings under the Income-tax Act. Therefore, the revision order under section 263 of the Act was deemed invalid, and the appeal by the assessee was allowed.

In conclusion, the Tribunal allowed the appeal filed by the assessee, quashing the revision order passed under section 263 of the Act. The decision was based on the assessee's prior availing of the Vivad-se-Vishwas Scheme 2020, which rendered the revision order invalid.