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2025 (2) TMI 451 - HC - Income TaxDirect Tax Vivad Se Vishwas Scheme - constitutional validity of Chapter IV of The Finance (No.2) Act 2024 Direct Tax Vivad Se Vishwas Scheme 2024 - petitioner is particularly aggrieved by Section 89(1)(a) of the said Act inasmuch as it has confined the meaning of the appellant to a person in whose case an appeal or a writ petition or a special leave petition has been filed by him or the Income Tax Authorities. HELD THAT - Benefit of the Vivad Se Vishwas Scheme is available even to those assessees who are aggrieved by virtue of an order passed by the Income-Tax Authorities and intend to challenge the same by way of appeal and in whose cases the time for filing appeal has not expired.
ISSUES PRESENTED and CONSIDERED:
- The constitutional validity of Chapter IV of The Finance (No.2) Act, 2024 - Direct Tax Vivad Se Vishwas Scheme, 2024. - Interpretation of Section 89(1)(a) of the said Act regarding the definition of the term 'Appellant' and its implications on eligibility under the scheme. - The anomaly in the scheme's application to individuals who intend to file an appeal but have not done so before the specified date. ISSUE-WISE DETAILED ANALYSIS: 1. The Court considered the petitioner's challenge to the constitutional validity of Chapter IV of The Finance (No.2) Act, 2024, specifically focusing on Section 89(1)(a) which defined the term 'Appellant' under the Direct Tax Vivad Se Vishwas Scheme, 2024. - The Court noted the petitioner's contention that the definition discriminated between individuals who had filed an appeal before a specified date and those who intended to file an appeal but had not done so before the deadline. - The Court referenced a similar issue raised before the Delhi High Court and highlighted the need for clarity in the scheme's application to ensure fairness to all potential beneficiaries. - The Court directed the Central Board of Direct Taxes (CBDT) to address the anomaly and consider issuing a clarifying circular to resolve the issue promptly. 2. The Court analyzed the Order issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes on 20.01.2025, which addressed the difficulties arising in implementing the Direct Tax Vivad Se Vishwas Scheme, 2024. - The Order clarified that individuals who had appeals pending as of a specified date would be considered appellants under the scheme, even if the appeal was filed after the deadline without an application for condonation of delay. - This Order effectively extended the benefit of the scheme to individuals who were aggrieved by orders passed by Income-Tax Authorities and intended to challenge them through appeals, even if the appeal filing deadline had not yet expired. - As a result, the Court closed the writ petition as the petitioner's prayer had been addressed, allowing the benefit of the scheme to a broader category of assessees. SIGNIFICANT HOLDINGS: - The Court's intervention led to the clarification of the scheme's application, ensuring that individuals intending to file appeals could also avail themselves of the benefits under the Direct Tax Vivad Se Vishwas Scheme, 2024. - The Order issued by the Ministry of Finance removed the ambiguity and extended the scheme's coverage to include individuals with pending appeals, thereby promoting fairness and inclusivity in the scheme's implementation.
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