Calcutta HC allows Physical Filing of Forms 1 & 2 within Time, Permits Availing DTVsV Scheme, 2024; Condones Dept’s Delay [Read Order]
The Court noted that the Income Tax Department has previously applied the decision in the Aditya Saraf (HUF) case, processing comparable petitions under the Scheme and guaranteeing equal treatment
Calcutta HC
Calcutta HC
The Calcutta High Court has permitted the assessee to take benefit of the Direct Tax Vivad Se Vishwas Scheme, 2024 by allowing the physical submission of Forms 1 and 2 within time provided by the court, i.e., 10 days.
The Principal Commissioner of Income Tax filed an appeal under Section 260A of the Income Tax Act, 1961, contesting an Income Tax Appellate Tribunal (ITAT) decision regarding the 2012-13 Assessment Year. The Revenue went to the High Court after the Tribunal dismissed the reopening of the assessment.
The Department’s appeal, however, was delayed. The Bench comprising Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) found sufficient cause for the delay and condoned it.
The Court noted that with the delay condoned, the appeal would be deemed to have been filed within the limitation period as on 31st July 2024. This effectively meant that the assessee became eligible to opt for the Vivad Se Vishwas Scheme announced on 23rd July 2024.
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The bench noted its earlier decision in Principal Commissioner of Income Tax-5, Kolkata v. Aditya Saraf (HUF) and relying on similar reliefs granted by the Delhi High Court in I.A. Housing Solution Pvt. Ltd. v. PCIT (2022), said that an assessee should not be prejudiced due to delays or defaults on the part of the Department.
Accordingly, the Court directed the assessee to file the requisite Forms 1 and 2 physically within 10 days of receiving the order. It further held that such filing shall be deemed to have been made within the statutory time limit under the Scheme. The Department was directed to process the application and issue the necessary forms to facilitate payment of the disputed tax within six weeks thereafter.
Additionally, the Court noted that the Income Tax Department has previously applied the decision in the Aditya Saraf (HUF) case, processing comparable petitions under the Scheme and guaranteeing equal treatment.
Accordingly, the assessee’s application was allowed, and the Revenue’s appeal stood disposed of, with the substantial questions of law raised by the Department kept open.
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