2022 (4) TMI 318 - AT - Income Tax

Appeals Remanded for Fresh Adjudication due to CIT(A) Error

The Appellate Tribunal ITAT Dehradun remanded three appeals back to the CIT(A) for fresh adjudication, as the CIT(A) erroneously dismissed the appeals ... Misdismissal on presumed election under Vivad se Vishwas Scheme - Vivad se Vishwas Scheme - restoration of appeals for adjudication on merits - direction to decide on fact and law after opportunity of hearingMisdismissal on presumed election under Vivad se Vishwas Scheme - restoration of appeals for adjudication on merits - direction to decide on fact and law after opportunity of hearing - Whether the appeals should be restored to the file of the Ld. CIT(A) for decision on merits in view of an erroneous dismissal premised on a supposed election under the Vivad se Vishwas Scheme. - HELD THAT: - The Tribunal found that the Ld. CIT(A) dismissed the appeals on the basis that the assessee had opted for the Vivad se Vishwas Scheme and that the PCIT had certified payment in Form No.5. The assessee, however, maintained that it had not made such an election. As the dismissal was founded on a factual presumption rather than an adjudication on merits, the Tribunal held that the appeals were erroneously disposed of without deciding the substantive issues. The Revenue did not oppose restoration. In these circumstances the Tribunal restored the appeals to the file of the Ld. CIT(A) with a direction to decide the matters on merits in accordance with fact and law, after affording the assessee a proper opportunity of being heard. [Paras 6, 7]Appeals restored to the file of the Ld. CIT(A) for fresh adjudication on merits after giving the assessee an opportunity of hearing; grounds allowed.Final Conclusion: The three appeals are allowed for statistical purposes and are restored to the Ld. CIT(A) with directions to decide them on merits in accordance with fact and law after affording the assessee an opportunity of being heard. Issues:Challenging dismissal of appeals by CIT(A) based on erroneous presumption of opting for Vivad se Vishwas Scheme.Analysis:The judgment by the Appellate Tribunal ITAT Dehradun pertains to three appeals filed by the assessee against separate orders of the National Faceless Appeal Centre for different assessment years. The appeals were heard together as identical grounds were raised. The assessee challenged the orders of the CIT(A) dismissing the appeals on the basis of mistakenly presuming the assessee had opted for the Vivad se Vishwas Scheme.The counsel for the assessee contended that the CIT(A) had erroneously dismissed the appeals assuming the assessee had opted for the scheme, while in reality, the assessee had not chosen to participate in the Vivad se Vishwas Scheme. The Principal Commissioner of Income Tax had issued Form No.5 certifying full and final payment of taxes, leading to the dismissal of the appeals. The counsel requested the appeals to be restored to the CIT(A) for a merit-based adjudication.Upon hearing both sides, the Tribunal observed that the CIT(A) had indeed erred in dismissing the appeals without considering the merits, solely on the assumption of the assessee's participation in the scheme. The Tribunal, therefore, decided to remand the appeals back to the CIT(A) for a fresh adjudication on the merits of the case. The CIT(A) was directed to decide the issues based on facts and law, ensuring the assessee is given a fair opportunity to present their case.Consequently, the Tribunal allowed the grounds raised by the assessee, setting aside the CIT(A)'s orders and remanding the appeals for a fresh decision on merit. The appeals were allowed for statistical purposes, emphasizing the need for a proper consideration of the issues at hand. The judgment was pronounced in an open court on 08/02/2022, providing clarity and a fair opportunity for the assessee to present their case before the CIT(A).