2021 (6) TMI 1008 - HC - Income Tax

Direct Tax Vivad Se Vishwas Act, 2020 - whether Petitioner is an eligible appellant under the provisions of the DTVSV Act? - Whether if the appeal before the appellate forum, CIT(A) in this case, is pending before the specified date i.e. 31st January 2020, then the applicant would be an eligible appellant? - HELD THAT - The undisputed facts that emerge are that Assessment Order being passed on 26 th December 2019, the demand was raised before the specified date i.e., 31st January 2020. Petitioner had filed appeal before Commissioner of Income Tax (A) on 6th February 2020 and the condonation of delay application was filed on 20th February 2020. The condonation delay as per the affidavit of the department came on 25th December 2020. In view of the department s own stand that the delay in filing the appeal before the CIT(A) has been condoned, there is nothing left for us to say further. It is a matter of first principles that the order of condonation of delay relates to the appeal and once delay has been condoned in the filing of appeal that means in this particular case appeal has been filed in time i.e. before the specified date i.e. 31 st January 2020 as required under the DTVSV Act thereby making Petitioner an eligible appellant to avail the benefit of the DTVSV Scheme. Moreover, the department has in its affidavit in reply clearly stated that the Petitioner is an eligible appellant under the DTVSV Act and that Petitioner also does not fall within the disqualification in Section 9 of the DTVSV Act. Petition allowed.

Summary

Issues:
Challenge to rejection of application under Direct Tax Vivad Se Vishwas Act, 2020 based on absence of pending appeal.

Analysis:
The petitioner challenged the rejection of their application under the Direct Tax Vivad Se Vishwas Act, 2020, citing the absence of a pending appeal. The petitioner's Assessment Order for the year 2014-15 was passed in December 2019, following which an appeal was filed before the Commissioner of Income Tax (Appeals) in February 2020. The petitioner made a declaration under the DTVSV Act in December 2020 and January 2021. The rejection of the application was based on the department's assertion that the condonation of delay was granted after the declaration was filed, rendering the petitioner ineligible. The crucial issue was whether the petitioner qualified as an eligible appellant under the DTVSV Act.

The key provision in question was Section 2(1)(a)(i) of the DTVSV Act, which defines an "appellant" as a person with a pending appeal before the specified date. The central question was whether the delay in filing the appeal was condoned. The court noted that the delay in filing the appeal before the Commissioner of Income Tax (A) had been condoned, making the petitioner an eligible appellant under the DTVSV Scheme. The department acknowledged in its affidavit that the petitioner met the eligibility criteria and was not disqualified under Section 9 of the DTVSV Act.

Considering the undisputed facts and the department's acknowledgment of the petitioner's eligibility, the court allowed the petition and directed the respondent to cancel the rejection of the petitioner's application. The court further instructed the respondent to verify and accept the declarations filed by the petitioner under the DTVSV Act and determine the payable amount accordingly. The petition was disposed of with no costs incurred.