Assessee Eligible to Apply for Settlement under DTVSV Act when Disputed Tax Arrears still Exist: Delhi HC [Read Order]
Assessee Eligible to Apply for Settlement under DTVSV Act when Disputed Tax Arrears still Exist, rules Delhi HC
Delhi high court – Disputed tax arrears – Settlement under DTVSV act – tax arrears – TAXSCAN
Delhi high court – Disputed tax arrears – Settlement under DTVSV act – tax arrears – TAXSCAN
The Delhi High Court held that the assessee is eligible to apply for settlement under the Direct Tax Vivad se Vishwas Act, 2020 (DTVSV Act) when the disputed tax arrears still exist.
The petition, raised a singular issue i.e., whether the assessee would be eligible to avail the benefits of settlement under the provisions of Direct Tax Vivad se Vishwas Act, 2020 [DTVSV Act], particularly when the assessee’s appeal before Commissioner of Income Tax (Appeals) [CIT(A)] was dismissed on the ground of delay and admittedly when the limitation to file an appeal before Income Tax Appellate Tribunal [„ITAT‟] had not expired on the specified date i.e, 31.01.2020 as provided under the DTVSV Act.
The counsel appearing on behalf of the assessee submitted that the impugned action of the Revenue is wholly arbitrary and completely dehors the beneficial objectives of the DTVSV Act. He argued that as per the provisions of Section 2(1)(a)(ii) read with Section 2(1)(n) of DTVSV Act, an assessee in whose case an order has been passed by CIT(A) and the limitation for filing an appeal against the said order has not expired as on specified date, such cases are covered within the meaning of the appellant.
The senior standing counsel appearing on behalf of Revenue argued that as per the provisions of the DTVSV Act, in order to avail the benefit of the “Vivaad se Vishwas” scheme, the appeal had to remain pending as on the specified date i.e. on 31.01.2020. However, according to him, no appeal was pending in the assessee’s case as the CIT(A) disposed of the condonation of delay application on 01.01.2020.
A Division Bench of Justices Purushaindra Kumar Kaurav and Yashwant Varma observed that “Therefore, it becomes evident that once the CIT(A) has rejected the appeal of the assessee whether on merits or on delay aspect, the tax demand as reflected in the assessment order gets confirmed unless it is set aside or modified by other appellate authority. Thus, the disputed tax arrears still exist as on specified date and consequently, the assessee would be eligible to apply for settlement under the DTVSV Act.”
“Furthermore, it is not the case of the Revenue that the assessee had filed an appeal before the CIT(A) after the announcement of the DTVSV Act merely to seek the benefits of the DTVSV Act as the record would reflect that the appeal was filed way back on 23.02.2018. It is also not the case of the Revenue that the assessee was not eligible for settlement of the dispute on account of any exclusion contained in Section 9 of the DTVSV Act” the Bench noted.
To Read the full text of the Order CLICK HERE
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