2021 (6) TMI 1168 - HC - Income Tax

Benefit of Vivad se Vishwas Scheme denied - Forms 1 and 2 rejected as petitioner s revision application filed u/s 264 was not pending as on the specified date, i.e., 31.01.2020 - as contended by the petitioner, that the limitation for filing a revision application stood extended by the Central Board of Direct Taxes ( CBDT ) Circular till 31.03.2021 - whether period spanning between 15.03.2020 and 14.03.2021 stood excluded for the purposes of limitation? HELD THAT - To our minds, the matter requires examination. Accordingly, issue notice. Counter-affidavit will be filed within the next four weeks. Rejoinder thereto, if any, will be filed before the next date of hearing. Revenue will accept Forms 1 2 filed by the petitioner, on 23.03.2021, along with 100% of the disputed tax. Mr. Aggarwal says that, according to the petitioner, ₹ 16,81,546/- is payable towards 100% of the disputed tax . The respondent, therefore, pending the adjudication of the petition, without prejudice to its rights and contentions, will accept Forms 1 2 with 100% of the disputed tax. In case, according to the respondent/revenue, 100% of the disputed tax figure, is at variance with the aforementioned amount, the same will be indicated to the petitioner and necessary corrective action will be taken by the petitioner. Revenue will also take next steps in the matter which will be, as indicated above, subject to the final outcome of the writ petition and will bear in mind, while taking next steps in the matter, the deadline, which presently, we are told, expires on 30.06.2021. Given the aforesaid directions that have been issued in the matter, Mr. Aggarwal says, he does not wish to press the interim application any further. CM is, thus, closed. List this matter on 22.09.2021.

Summary

Issues:
1. Exemption from filing sworn/affirmed affidavits
2. Rejection of Forms 1 and 2 under the Direct Tax Vivad se Vishwas Act, 2020
3. Flawed reasoning for rejection
4. Extension of limitation for filing revision application
5. Acceptance of Forms 1 & 2 with disputed tax pending adjudication

Exemption from filing sworn/affirmed affidavits:
The petitioner sought exemption from filing sworn/affirmed affidavits along with the petition, which was initially allowed subject to exceptions. However, the petitioner was directed to file duly sworn/affirmed affidavits within three days of the court's normal work pattern resuming.

Rejection of Forms 1 and 2 under the Direct Tax Vivad se Vishwas Act, 2020:
The petitioner had filed Forms 1 and 2 under the 2020 Act twice, on 10.03.2021 and 23.03.2021, both of which were rejected. The rejection was primarily due to the petitioner's revision application under Section 264 of the Income Tax Act, 1961 not pending as of 31.01.2020. The petitioner contended that the reasoning for rejection was flawed as a revision application was filed within the extended deadline.

Extension of limitation for filing revision application:
The petitioner argued that the limitation for filing a revision application was extended until 31.03.2021 as per the CBDT Circular and the Ordinance. The petitioner relied on legal provisions and notifications to support the claim that the period between 15.03.2020 and 14.03.2021 was excluded for limitation purposes.

Acceptance of Forms 1 & 2 with disputed tax pending adjudication:
Pending the adjudication of the petition, the respondent agreed to accept Forms 1 & 2 filed by the petitioner on 23.03.2021 along with 100% of the disputed tax amount. The respondent would take necessary steps in the matter, considering the deadline expiring on 30.06.2021, subject to the final outcome of the writ petition.

The court found the matter requiring examination and issued notice to the respondent. The respondent agreed to accept Forms 1 & 2 with 100% of the disputed tax pending adjudication. The case was listed for further hearing on 22.09.2021, and the interim application was closed as per the petitioner's request.