2020 (12) TMI 569 - HC - Income Tax

Benefit of Vivad Se Vishwas Scheme ('VVS Scheme') - consideration on account of certain subsequent developments - HELD THAT - As observed, the assessee is given liberty to restore these appeals in the event the ultimate decision to be taken on the declaration to be filed by the assessee under Section 4 of the said Act is not in favour of the assessee. If such a prayer is made, the Registry shall entertain the prayer without insisting upon any application to be filed for condonation of delay in restoration of the appeals and on such request made by the assessee by filing a Miscellaneous Petition for Restoration, the Registry shall place such petition before the Division Bench for orders. We direct the appellant / assessee to file the Form No.I not later than 21.12.2020 and the competent authority shall process the application / declaration in accordance with the Act and pass appropriate orders as expeditiously as possible preferably within a period of six (6) weeks from the date on which the declaration is filed in the proper form.

Summary

Issues:
- Challenge to the order of the Income Tax Appellate Tribunal
- Benefit of Vivad Se Vishwas Scheme and its applicability
- Provisions of the Direct Tax Vivad Se Vishwas Act, 2020
- Liberty to restore appeals based on the outcome of the declaration filed

Challenge to ITAT Order:
The appellant filed appeals challenging the order of the Income Tax Appellate Tribunal (ITAT) for the Assessment Year 2008-2009. The appellant raised substantial questions of law regarding the alleged perversity of the ITAT's order and the rejection of a miscellaneous petition under section 254(2) of the Income Tax Act, 1961.

Vivad Se Vishwas Scheme:
The appellant expressed the intention to benefit from the Vivad Se Vishwas Scheme (VVS Scheme) by filing an application or declaration in Form No.I. Considering subsequent developments, the Court noted the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, providing for the resolution of tax disputes and related matters. The Act allows declarants to resolve pending tax disputes at various levels, offering provisions for determining the amount payable and granting immunity from certain penalties.

Provisions of the Direct Tax Vivad Se Vishwas Act, 2020:
Under the Act, a declarant can file a declaration with the designated authority to resolve tax arrears, with specific provisions for different stages of dispute resolution, including appeals, writ petitions, and proceedings before tax authorities. The Act outlines the process of filing declarations, determining payable amounts, payment timelines, and immunity from certain penalties, while also specifying cases where the Act does not apply.

Liberty to Restore Appeals:
The Court granted the appellant the liberty to restore the appeals if the decision on the filed declaration is unfavorable. The appellant was directed to file Form No.I by a specified date, with the competent authority instructed to process the application promptly. The Court disposed of the Tax Case Appeals with the mentioned liberty for restoration, keeping the substantial questions of law open and waiving any costs associated with the proceedings.