Appeal Allowed: Tribunal Grants Benefit Under Vivad Se Vishwas Scheme for AY 2018-19 Due to Filing Issues.

The Tribunal allowed the appellant's appeal against the order under section 271FA of the Income Tax Act, 1961, for the assessment year 2018-19. It directed the AO to grant the benefit of the Vivad Se Vishwas Scheme upon submission of necessary documents, acknowledging technical issues faced during filing. The appeal was decided in favor of the appellant.

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Issues Involved:
The issues involved in this case are: Appeal against order u/s 271FA of the Income Tax Act, 1961 for assessment year 2018-19, imposition of penalty, non-submission of Form 4 under Vivad Se Vishwas Scheme, and denial of opportunity of being heard.

Appeal against Order u/s 271FA:
The appellant challenged the order passed by the Assessing Officer u/s 271FA of the Income Tax Act, 1961, contending that it was bad in law and passed without giving a proper opportunity of being heard. The appellant explained that the late filing of the SFT statement online was due to technical problems, but it was duly filed manually. The appellant argued that the penalty imposed was unjust considering the circumstances.

Imposition of Penalty under Section 271FA:
The CIT(A) sustained the penalty imposed by the assessing officer under section 271FA, despite the appellant opting for the Vivad Se Vishwas Scheme and paying the due amount. The appellant submitted that Form 4 of the VSVS was manually submitted to the Commissioner of Income Tax due to technical issues faced while filing online. The Tribunal accepted the submissions and directed the AO to grant the benefit of the Vivad Se Vishwas Scheme to the appellant upon submission of requisite documents, thereby allowing the appeal.

Non-Submission of Form 4 under Vivad Se Vishwas Scheme:
The appellant had adopted the Vivad Se Vishwas Scheme, but Form Nos. 4 & 5 were not generated electronically. The demand created by the penalty was paid by the appellant, and Form 4 was manually submitted to the tax authorities. The Tribunal acknowledged this submission and directed the AO to provide the benefit of the scheme to the appellant upon submission of necessary documents.

Denial of Opportunity of Being Heard:
The appellant argued that the order passed by the CIT(A) was against the principles of natural justice as it was done without giving a proper opportunity of being heard. The Tribunal considered this argument and allowed the appeal, granting relief to the appellant based on the submissions made regarding the Vivad Se Vishwas Scheme and the technical difficulties faced during filing.

Conclusion:
The Tribunal allowed the appeal filed by the appellant against the order passed under section 271FA of the Income Tax Act, 1961, for the assessment year 2018-19. The Tribunal directed the Assessing Officer to provide the benefit of the Vivad Se Vishwas Scheme to the appellant upon submission of the necessary documents. The appeal was allowed in favor of the appellant, and the order was pronounced in the open court on 23rd February 2024.

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