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2022 (6) TMI 518 - HC - Income TaxDirect Tax Vivad Se Vishwas Scheme - petitioner failed to furnish Form-4 - Petitioner seeking permission to pay the amount due under the Act alongwith additional fee and interest as owing to illness of his mother, he was residing abroad during April, 2021 to October, 2021 - HELD THAT - Section 3 of the Act provides that subject to the provisions of the Act where a declarant has filed a declaration to the designated authority in accordance with the provisions of Section 4 in respect of tax arrear, notwithstanding anything contained in the Income Tax Act or any other law for the time being in force the amount payable by the declarant shall be as provided in the table in the said Section. The declaration as referred to in Section 3 has to be made before the designated authority in prescribed format as provided in Section 4(1) of the Act. As per sub-section (2) of Section 4 upon filing such declaration, any appeal pending before the Income Tax Appellate Tribunal or Commissioner (Appeals) in respect of disputed income or disputed interest or disputed penalty or fee and tax arrear shall be deemed to have been withdrawn from the date on which certificate under Section 3 and 4 has been issued by the designated authority. Section 5 of the Act pertains to time and manner of payment. Sub-section (1) of Section 5 provides that the designated authority shall within a period of 15 days from the date of receipt of the declaration by an order determine amount payable by the declarant. As per sub-section (2) of Section 5 the declarant has to pay the amount as determined under sub-section (1) within 15 days of the date of receipt of the certificate and intimate the details of such payments to the designated authority. We are unable to agree with the contention of the counsel for the petitioner that as per Annexure P-4, the offer remained unended. The settlement can never be said to be open ended. It has a terminal point. In the present case, either amount of Rs.1,09,46,846/- was to be paid before 31.03.2021 or an amount of Rs.1,20,41,530/- was to be paid till the last date of payment as notified i.e. 31.10.2021. Petitioner has not been able to point out any provision which shall entail extension of time as a vested right which can be enforced by way of writ petition under Article 226 of the Constitution of India. Trite it is that enforceable right under law is a sine qua non for issuance of a writ in the nature of mandamus. In the absence of there being any right vested in the petitioner to claim extension of the last date or to seek payment of tax with late fee etc., we find no merit in the present writ petition. Consequently, the same is dismissed.
Issues:
1. Petitioner seeks mandamus to direct acceptance of tax under Vivad Se Vishwas Scheme. 2. Dispute over deduction claimed under Section 54 of the Income Tax Act, 1961. 3. Appeal dismissed, remanded back to First Appellate Authority, challenged by revenue. 4. Petitioner opts for Vivad Se Vishwas Scheme, offer accepted, payment details provided. 5. Deadlines for payment extended, petitioner misses both, seeks permission for late payment. 6. Contention regarding open-ended offer under Form-3. 7. Interpretation of Sections 3, 4, and 5 of the Vivad Se Vishwas Act. 8. Claim of extension of time as a vested right for writ petition under Article 226. Analysis: The petitioner filed a writ petition seeking a mandamus to direct the acceptance of tax under the Vivad Se Vishwas Scheme. The dispute arose from the petitioner's claim for deduction under Section 54 of the Income Tax Act, 1961, which was denied during processing under Section 143(1) of the Act. Subsequent appeals and challenges led to the petitioner opting for the Vivad Se Vishwas Scheme, with the offer being accepted, and payment details provided in statutory forms. However, the petitioner missed the extended deadlines for payment, citing reasons of illness in the family. The contention that the offer under Form-3 remained open-ended was dismissed by the court. The judgment delved into the interpretation of Sections 3, 4, and 5 of the Vivad Se Vishwas Act, emphasizing the timelines and procedures for payment under the scheme. The court highlighted that the settlement under the scheme had a terminal point, either before 31.03.2021 or the extended deadline of 31.10.2021. The judgment emphasized that the petitioner had no vested right to claim an extension of the last date or seek payment with late fees, as no enforceable legal right existed for such a claim. Citing legal precedents, the court emphasized the necessity of a judicially enforceable and legally protected right for the issuance of a writ in the nature of mandamus. As the petitioner lacked such a right, the court dismissed the writ petition, finding no merit in the petitioner's claims.
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