2023 (2) TMI 1056 - AT - Income Tax

Vivad-se-Viswas Scheme - Additions on account of amount received towards share in sale of land in different Assessment Years settled under Vivad-se-Viswas Scheme - HELD THAT - The dispute between the department and M/s Roots Developer Pvt. Ltd. still subsists as it has not been settled under the Vivad-se-Viswas Scheme. The decision taken in the present appeals will have no impact on the pending appeals of M/s Roots Developer Pvt. Ltd. which have to be decided on their own merits. Therefore, the apprehension of learned Departmental Representative, in our view, is unfounded. Thus, considering the fact that the dispute between the present appellants and the department qua the issue of taxability of amount received on sale of land has been settled under the Vivad-se-Viswas Scheme, in our view, the present appeals filed both by the assessee and the revenue are of mere academic importance, hence infructuous. Therefore, we dismiss all these appeals.

Summary

Issues:
27 appeals relating to 5 assesses - common grounds and overlapping issues.

Analysis:
The appeals involved 27 appeals from 5 different assesses arising from a common order dated 03.03.2017 of ld. CIT(A)-I, Gurgaon, pertaining to A.Y. 2007-08, 2010-11, 2011-12, 2012-13, and 2013-14. The appeals were clubbed together due to common grounds and overlapping issues for convenience.

Four appellants were resident individuals, and one was a Hindu Undivided Family (HUF) closely related to each other. A search and seizure operation under section 132 of the Income Tax Act, 1961 was conducted in the case of M/s CHD Developers Pvt. Ltd., leading to the discovery of incriminating materials, including collaboration agreements. Substantial amounts were received by the assessees on the sale of land, not offered as income in the Income Tax Returns filed for different Assessment Years, prompting the Assessing Officer to reopen assessments under section 147 of the Act.

The First Appellate Authority directed the Assessing Officer to assess the entire income for A.Y. 2010-11 for the present appellants and make additions in various other assessment years for M/s Roots Developer Pvt. Ltd. The Assessing Officer made additions based on collaboration agreements, leading to appeals filed by the present appellants and M/s Roots Developer Pvt. Ltd.

During the pendency of the appeals, the appellants settled the dispute under the Direct Tax Vivad-se-Viswas Scheme 2020. The Assessing Officer passed assessment orders making additions for A.Y. 2010-11, which were contested by the appellants. The dispute settlement under the Vivad-se-Viswas Scheme rendered the appeals academic, leading to their dismissal.

The dispute between the present appellants and the revenue regarding the taxability of amounts received on the sale of land was settled under the Vivad-se-Viswas Scheme, making the appeals infructuous. The appeal in ITA No. 3093/Del/2017 also became infructuous as no additions were made by the Assessing Officer, leading to the dismissal of all appeals.