2025 (2) TMI 611 - HC - Income Tax

Rejection of application of the petitioner filed vide DTVSV Form-1 - resolving the dispute regarding interest charged under Sections 234A 234B and 234C - HELD THAT - Revenue was afforded an opportunity to examine the present petition as to whether the issue was covered by the aforesaid judgements and complete his instructions. The learned counsel was also directed to seek instructions regarding whether judgements cited by the petitioner have been challenged by the Department before Supreme Court or not. Today Revenue states that there is no information available with the Department as to whether any further appeal of the judgement of Kapri International 2022 (8) TMI 805 - DELHI HIGH COURT has been laid before the Supreme Court. In that view of the matter the ratio laid down in Kapri International is still good law and binds this Court too. In any case having examined the facts of the present matter we are of the considered opinion that the ratio laid down in Kapri International (supra) too would apply. In view of the ratio laid down in Kapri International Pvt. Ltd supra and in Tvl. Sanmac Mootor Finance Ltd. 2024 (11) TMI 86 - MADRAS HIGH COURT the present petition is allowed with the directions provided therein being applicable mutatis mutandis to the present petition also. Consequently Rejection Order/Intimation dated 30.10.2024 is set aside with directions to the CIT to re-examine/reassess the declaration filed by the petitioner under the DTVSV Scheme and decide on its merits in terms of procedure envisaged under the Act read with its Rules.

Summary

The petitioner challenged an order rejecting their application under the Direct Tax Vivad Se Visvas Scheme, 2014 related to interest charged under Sections 234A, 234B, and 234C of the Income Tax Act, 1961. The petitioner had sold shares in Vikas Telecom Limited to Embassy Property Developments Pvt. Ltd. under a Share Purchase Agreement. Due to a delay in the realization of the capital gains tax liability, the petitioner sought a refund of Advance Tax paid for A.Y. 2014-15 to use for A.Y. 2015-16. The refund was delayed, leading to difficulties in meeting the tax liabilities for A.Y. 2015-16, resulting in interest charges under Sections 234A, 234B, and 234C. The petitioner's application for waiver of interest was dismissed, leading to the filing of a petition before the High Court.The court considered the petitioner's arguments, including reliance on precedents such as Kapri International Pvt. Ltd. v. Commissioner of Income-tax-IV and Tvl. Sanmac Mootor Finance Ltd. v. Central Board of Income-tax. The court found that the principles established in these cases applied to the present matter. Consequently, the court allowed the petition, setting aside the rejection order and directing the Commissioner of Income Tax to re-examine the petitioner's declaration under the DTVSV Scheme.In conclusion, the court granted relief to the petitioner based on established legal principles, emphasizing the need for a reassessment of the petitioner's case under the applicable procedures.