2020 (3) TMI 898 - HC - Income Tax

Eligibility of benefit under the Direct Tax Vivad Se Vishwas Act, 2020 - grievance of the petitioner is that due to pendency of its application for restoration of the appeal, it is being deprived of the benefit that it expects to receive under the Direct Tax Vivad Se Vishwas Act, 2020, which provides scheme for waiving of certain amount of tax of the eligible assesees - HELD THAT - All the applications of the petitioner including application for condonation of delay and application for restoration of appeal shall be heard as soon as possible and disposed of in accordance with law by respondent no.3 latest by 24/3/2020, if the petitioner deposits with respondent no.2 an amount of rupees twenty-five lakhs latest by 23/3/2020. If any amount is determined to be in excess of the amount liable to be assessed to the petitioner under the scheme, same shall be refunded to the petitioner. The auction sale shall stand deferred for a period of eight weeks from the date of order. Rule is made absolute in the aforesaid terms.

Summary

Issues:
1) Application for restoration of appeal under Direct Tax Vivad Se Vishwas Act, 2020.

Analysis:
The petitioner's grievance in this case revolves around the pendency of its application for restoration of the appeal, which is hindering its ability to benefit from the provisions of the Direct Tax Vivad Se Vishwas Act, 2020. The Act offers a scheme for waiving a certain amount of tax for eligible assessees. The petitioner's counsel highlights that the last date for submitting applications under this Act is 31/3/2020. The petitioner intends to withdraw the appeal and avail of the scheme if the appeal is restored in time.

The respondents' counsel suggests that an early hearing could be granted to the petitioner if they deposit an amount of twenty-five lakhs rupees to demonstrate their bonafides. In response to these arguments, the court issues specific directions to address the situation. The court orders that all the petitioner's applications, including those for condonation of delay and restoration of appeal, must be heard expeditiously and decided by a certain date. The petitioner is required to deposit the specified amount with a designated respondent by a particular deadline. Any excess amount determined beyond the petitioner's liability under the scheme shall be refunded. Additionally, the court orders a deferral of the auction sale for a specified period from the date of the order.

In conclusion, the court makes the rule absolute based on the directions issued. No costs are awarded in this matter, and the parties are bound by the terms set forth by the court for the resolution of the issues raised regarding the restoration of appeal under the Direct Tax Vivad Se Vishwas Act, 2020.