2021 (7) TMI 1400 - HC - Income Tax

Benefit of DTVSV Scheme - Petitioner s application has been rejected for the reason that assessee had not filed any appeal against the order in respect of which he wishes to avail benefit, while an assessee has to file appeal on or before 31st January, 2020 and since the appeal had not been filed, it does not fulfill the criteria prescribed under the DTVSV Act - HELD THAT - This is a peculiar case wherein assessment order of 22nd December, 2019, had not been served upon the Petitioner until Petitioner obtained a copy on 15th December, 2020 and as can be seen from the aforesaid discussion, Petitioner as such had suffered handicap to lodge an appeal before the specified date i.e. 31st January, 2020 for no fault of his. In the circumstances, it would emerge that Petitioner would be able to avail benefit of the term Appellant under Section 2(1) (a)(ii) of the DTVSV Act. In circular bearing No.9 of 2020 dated 22nd April, 2020 in its reply to Questions No. 1 and 23, it has been referred to that where any order has been passed under the I.T. Act and time limit to file appeal has not expired on 31st January, 2020, then the assessee can be very well opt for the said Scheme. The purpose and object underlying bringing in under DTVSV Act is to provide resolution of the disputed tax and matters connected therein and to put an end to litigation and unlock revenue detained under litigation. It would be expedient that present Petition be allowed. As such, impugned order of Respondent No.3, (Exh. K - page 107 of writ petition) rejecting application in Form Nos.1 2 under the DTVSV Act and the Rules, is set aside. Respondents are directed to consider Petitioner s application made in Forms 1 2 and issue proper order in the Form 3 in accordance with the provisions of the DTVSV Act and Rules within a period of two weeks from the date of this order.

Summary

Issues:
- Re-opening of assessment under Section 148 of the Income Tax Act, 1961
- Non-receipt of assessment order and appeal under Direct Tax Vivad-se-Vishwas Act, 2020 (DTVSV Act)
- Service of notice under Section 282 of the Income Tax Act

Analysis:

Re-opening of assessment under Section 148:
The Petitioner, an assessee under the Income Tax Act, filed a return of income for Assessment Year 2012-13, declaring total income. Respondent No.4 re-opened the assessment for the said year in March 2019. The Petitioner claimed not to have received the Assessment Order under Section 143(3) read with Section 147 of the I.T. Act, which hindered the ability to respond to the show cause notice.

Non-receipt of assessment order and appeal under DTVSV Act:
The Petitioner repeatedly requested the assessment order from Respondent No.4 to avail the benefits under the Direct Tax Vivad-se-Vishwas Act, 2020 (DTVSV Act). Despite the Petitioner's efforts, the assessment order was received only in December 2020, after the deadline to file an appeal had passed. The rejection of the Petitioner's application under the DTVSV Act was based on the failure to file an appeal by the specified date.

Service of notice under Section 282 of the Income Tax Act:
The Court highlighted the importance of serving notices as per Section 282 of the I.T. Act, which outlines various methods of communication. It was noted that the assessment order had not been served on the Petitioner until December 2020, causing a delay in the ability to file an appeal. The Court emphasized that the purpose of the DTVSV Act is to resolve disputed tax matters and put an end to litigation.

In conclusion, the Court allowed the Petition, setting aside the order rejecting the Petitioner's application under the DTVSV Act. The Respondents were directed to consider the Petitioner's application and issue the proper order in accordance with the provisions of the Act within a specified timeframe. The judgment highlighted the importance of timely service of notices and the need to facilitate the resolution of disputed tax matters.