2023 (9) TMI 1320 - HC - Income Tax

Challenge to Form 3 issued under the Direct Tax Vivad Se Vishwas Act, 2020 - petitioner says, that the impugned forms i.e., Form 3 in the above-captioned matters bear the same date, i.e., 15.04.2021 - revenue, says that the stand taken by the respondent/revenue is that the said forms issued to the petitioner would have to be reworked, to align them with the assertions made in the counter-affidavit - HELD THAT - As per following assertions made in the counter-affidavit filed To the extent of not granting set-off of Brought Forward Unabsorbed Business Losses and Brought Forward unabsorbed Depreciation of prior AYs computed on net income basis against the income of impugned AYs assessable on net income basis, the error committed by the Respondent is accepted and corresponding tax calculations will be modified. However, the remaining assertions of Petitioner are denied as factually incorrect and contrary to the express provisions of DTVSV Act and DTVSV Rules . Liberty is however, given to the respondents/revenue to rework the calculations on the basis of stand taken in the counter-affidavit and thereafter, issue fresh forms, as deemed fit. After fresh forms are issued, if still aggrieved, the petitioner will have liberty to assail the same in accordance with the law. Writ petitions and pending applications are disposed of in the aforesaid terms. We may also note that during the pendency of writ petitions, we had issued an interim direction requiring the petitioner to deposit a cumulative amount of Rs. 7,33,15,591/- with the designated authority.

Summary

Issues involved: Challenge to Form 3 issued under the Direct Tax Vivad Se Vishwas Act, 2020.

Judgment Summary:

The High Court heard the counsel for both parties briefly and noted the challenge to Form 3 issued under the Direct Tax Vivad Se Vishwas Act, 2020. The petitioner's counsel pointed out that the impugned forms all bore the same date of 15.04.2021. The respondent's counsel stated that the forms issued needed to be reworked to align with the assertions made in the counter-affidavit. It was suggested that fresh forms may have to be issued to address the discrepancies.

In light of the contentions raised, the Court set aside the impugned forms issued to the petitioner. The respondents were granted liberty to recalculate the amounts based on the stand taken in the counter-affidavit and then issue fresh forms as necessary. The petitioner was given the liberty to challenge the fresh forms if still aggrieved, in accordance with the law. The writ petitions and pending applications were disposed of in these terms.

During the proceedings, an interim direction was issued for the petitioner to deposit a cumulative amount of Rs. 7,33,15,591/- with the designated authority. The petitioner confirmed the deposit of this amount. Consequently, the Court ordered the release of the deposited amount to the petitioner within the next six weeks. The parties were directed to act based on the digitally signed copy of the order.