2023 (9) TMI 695 - HC - Income Tax

Revision u/s 263 - assessee took benefit of the Direct Tax Vivad se Vishwas Scheme - HELD THAT - It was not open for the authorities to initiate proceedings under Section 263 of the Act, especially when they were clearly so barred. We are also conscious of the fact that even if the appeal memo which is placed on record is seen, the matter in issue before the CIT (Appeals) which was sought to be brought to rest by opting for the benefit of the Scheme was in context of the same issue which the Revenue sought to invoke by issuing notice u/s 263 of the Act.

Summary

Issues involved:
Challenge to notice u/s 263 of the Income Tax Act, 1961 for Assessment Year 2012-13.

Summary:

Issue 1: Challenge to notice u/s 263 of the Income Tax Act, 1961

The petitioner challenged a notice issued to him u/s 263 of the Income Tax Act for the Assessment Year 2012-13. The petitioner's case was reopened under Section 147 of the Act, resulting in an assessment order assessing total income at Rs. 46,14,570/-. The petitioner appealed this order and opted for the Direct Tax Vivad se Vishwas Scheme under the Act to settle the dispute. The designated authority determined the amount payable and issued a certificate. The petitioner argued that once settled under the Scheme, it was not open for the respondent to initiate proceedings u/s 263. The respondent contended that the figures were different from those settled under the Scheme, justifying the initiation of proceedings. The Madras High Court decision in a similar case was cited, emphasizing the finality of settlements under the Scheme.

Decision:
The Court held that once a dispute was settled under the Direct Tax Vivad se Vishwas Scheme, proceedings under Section 263 could not be initiated. The Court noted that the issue in question was the same as that settled under the Scheme, making the notice under Section 263 invalid. Therefore, the notice dated 13th January, 2022 was quashed and the petition was allowed.