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2025 (3) TMI 763 - HC - Income TaxRejecting the application filed by the petitioner under Direct Tax Vivad Se Vishwas Scheme 2024 - HELD THAT - Government has introduced the DTVSV scheme with an intention to resolve the issues relating to the tax liability. The pre-condition for availing the benefit under DTVSV scheme is that the tax liability has to be disputed by way of appeal or writ petition or Special Leave Petition. This Court is of the view that the maintainability of the appeal has to be decided by the Appellate Authority. Since the Revisional Authority has dismissed the revision petition filed by the petitioner citing the reason that the petitioner is entitled to avail appeal remedy the petitioner has filed appeal before the Appellate Authority. The appeal has been numbered and taken on file. It is for them to decide whether the appeal has to be entertained or rejected. Even the appeal got rejected on the ground of maintainability still the petitioner is entitle to challenge the same by way of writ petition since no other alternate remedy is available. Therefore in the present case the tax liability assessed by the Taxing Authority has been disputed and the same is pending before the Appellate Authority. Therefore the respondents rather than giving quietus to the issue rejecting the application citing the jurisdictional issue which needs to be decided by the Appellate Authority is not proper. Hence this Court is inclined to set aside the order dated 12.02.2024 rejecting the Form-1 filed by the petitioner under DTVSV Scheme. The order impugned herein is set aside and the 1st respondent is directed to accept the petitioner s application filed under DTVSV Scheme on 04.10.2024 and to issue discharge certificate to the petitioner in accordance with the provision of the DTVSC scheme.
ISSUES PRESENTED and CONSIDERED
The core legal questions considered in this judgment are:
ISSUE-WISE DETAILED ANALYSIS Eligibility under the DTVSV Scheme Relevant Legal Framework and Precedents: The DTVSV Scheme was introduced to resolve disputes related to tax liabilities. Clause 89(1)(J)(A) specifies that for a taxpayer to avail the scheme's benefits, there must be a disputed tax liability in the form of an appeal, writ petition, or special leave petition pending before an appellate forum as of the specified date. Court's Interpretation and Reasoning: The Court interpreted the DTVSV Scheme as intending to resolve tax disputes efficiently. It emphasized that the scheme's purpose is to provide a mechanism for settling disputes by considering pending appeals as valid grounds for eligibility. Key Evidence and Findings: The petitioner had filed an appeal against the assessment order dated 17.05.2022, and this appeal was pending before the Commissioner of Income-tax (Appeals) when the petitioner applied under the DTVSV Scheme. The Court found that the Taxing Authority's rejection of the petitioner's Form-1 was based on the prior revision application, which was dismissed. Application of Law to Facts: The Court applied the provisions of the DTVSV Scheme to the facts, concluding that the pending appeal met the scheme's requirement of a disputed tax liability. The dismissal of the revision application did not negate the pending appeal's status. Treatment of Competing Arguments: The respondents argued that the petitioner's revision application dismissal precluded any further appeal, making the petitioner ineligible for the DTVSV Scheme. The Court rejected this argument, stating that the appeal's maintainability should be determined by the Appellate Authority, not the Taxing Authority. Conclusions: The Court concluded that the petitioner was eligible to apply under the DTVSV Scheme as the appeal was pending, and the rejection based on jurisdictional grounds was improper. SIGNIFICANT HOLDINGS Preserve Verbatim Quotes of Crucial Legal Reasoning: "The pre-condition for filing Form-1 under the DTVSV Scheme is that the tax liability supposed to have been disputed in the form of appeal, writ petition, or special leave petition, pending before the appellate forum as on the specified date." Core Principles Established: The Court established that the existence of a pending appeal satisfies the DTVSV Scheme's eligibility criteria. It emphasized the scheme's purpose to resolve tax disputes and clarified that jurisdictional issues should be resolved by the appropriate appellate authority. Final Determinations on Each Issue: The Court set aside the Taxing Authority's order rejecting the petitioner's Form-1 and directed the acceptance of the application under the DTVSV Scheme. The Court ordered the issuance of a discharge certificate to the petitioner, acknowledging the pending appeal's validity under the scheme.
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