Relief to Rolls Royce: Delhi HC quashes Form 3 issued under DTVSV Act to Re-calculate on basis of Counter Affidavit filed [Read Order]

In a recent ruling the Delhi High Court quashed Form 3 issued under Direct Tax Vivad Se Vishwas Act, 2020 (DTVSV Act) to re-calculate on the basis of the counter affidavit filed and thereby grating major relief to Rolls Royce industrial Power (India) Limited.

Kamal Sawhney, counsel who appeared on behalf of the petitioner argued, that the impugned forms i.e., Form 3 in the above-captioned matters bear the same date, i.e., 15.04.2021. the counsel further contended that fresh forms have to be issued under the DTVSV Act.

Sunil Agarwal, Senior Standing counsel who appeared on behalf of the respondent/revenue, submitted that the stand taken by the respondent/revenue is that the said forms issued to the petitioner would have to be reworked, to align them with the assertions made in the counter-affidavit.

Under the DTVSV Act, the appellant is required to pay only the amount of the disputed tax and complete waiver of interest & penalty and if appeal is related to interest and penalty then Appellant is only required to pay 25% of such interest or penalty provided that appellant applies by 31st December 2020 (earlier it was 31st March 2020) or any notified date. This Act also covers appeals made against the tax determined on the defaults in respect of tax deducted at source (TDS) or tax collection at source (TCS).

Once the declaration made by the taxpayer is accepted by the designated authority, Form 3 will be issued and the assesses need to pay the amount determined within 15 days of receipt of the certificate and need to intimate the details of such payment to the designated authority.

A Division Bench comprising Justices Rajiv Shakdher and Girish Kathpalia observed that “Accordingly, as agreed by counsel, the impugned forms issued to the petitioner are set aside. Liberty is however, given to the respondents/revenue to rework the calculations on the basis of stand taken in the counter-affidavit and thereafter, issue fresh forms, as deemed fit. After fresh forms are issued, if still aggrieved, the petitioner will have liberty to assail the same in accordance with the law.”

An interim direction requiring the petitioner to deposit a cumulative amount of Rs.7,33,15,591/- with the designated authority. The counsel for the petitioner submitted that this amount was deposited.   Hence the Court directed that the said amount will be released to the petitioner within the next six (6) weeks. 

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates