9911796707
TMI Blog2021 (9) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... HELD THAT:- The VSV Act was enacted to provide for resolution of disputed tax and for matters connected therewith and incidental thereto. In the VSV Act, there is no provision to exclude interest charged under Section 234A, 234B or 234C of the Act as stated in the order impugned. The disputed interest is defined under Sub Clause h (ii) of Sub Section 1 of Section 2 to mean the interest determined in any case under the provisions of the Income Tax Act, 1961 where an appeal has been filed by the appellant in respect of such interest . Appellant means under Clause a (i) of Sub Section 1 of Section 2 a person in whose case an appeal or a writ petition or special leave petition has been filed either by him or by the Income Tax Authority or by bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed. Petitioner had returned income of ₹ 94,91,780/- and the total income assessed under Section 143 (3) read with Section 147 of the Act was also ₹ 94,91,780/-. The total income under Section 288A was, therefore, the returned income, i.e., ₹ 94,91,780/-. Interest under Section 234B, 234C and 234D was charged as per calculation given in ITNS-150 which was part of the order (It looks like it should be Section 234A, 234B AND 234C because the calculation of interest states Section 234A, 234B and 234C and even in the petition, it is stated Section 234A, 234B and 234C). Section 234A relates to interest for defaults in furnishing return of income, Section 234B relates to interest for defaults in payment of advance tax, Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner also received a communication dated 30th January 2021 whereby petitioner was informed that petitioner's application for condonation of delay in filing the appeal under Section 246A has been allowed and the delay was condoned. Therefore, petitioner filed a revised Form 1 under the VSV Act on 30th January 2021 informing about the condonation of delay. On 17th March 2021, petitioner received an order rejecting its revised declaration in Form 1, in which the reason given is as under : "The Form-1 in this case was rejected earlier. The assessee has again filed Form-1 with same particulars. The issue is related to charging interest u/s. 234A, 234B and 234C. Since there is no disputed income, the case is rejected." Aggrieved by this reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by both, before an appellate forum and such appeal or petition is pending as on the specified date". Therefore, petitioner was eligible to file this declaration under the VSV Act for the disputed interest that was charged under Section 234A or Section 234B or Section 234C. The concerned authority was, therefore, not correct in rejecting the declaration of petitioner for reasons quoted above. 7. In the affidavit in reply filed by one K.P.C. Rao, Principal Commissioner of Income Tax and affirmed on 16th August 2021, a new ground is raised that the appeal filed by petitioner was not pending on the specified date, i.e., 31st January 2020 because the appeal has been filed only on 17th March 2020, after a delay of two months. It is also alleged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... December 4, 2020 in which question 59 and answer thereto reads as under :- "Q.59. Whether the taxpayer in whose case the time limit for filing of appeal has expired before 31st Jan 2020 but an application for condonation of delay has been filed is eligible? Answer : If the time limit for filing appeal expired during the period from 1st April 2019 to 31st Jan, 2020 (both dates included in the period), and the application for condonation is filed before the date of issue of this circular, and appeal is admitted by the appellate authority before the date of filing of the declaration, such appeal will be deemed to be pending as on 31st Jan 2020." 7. Therefore, where the time limit for filing of appeal hasexpired before January ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner of Income Tax (Appeals) himself has addressed a letter dated January 20, 2021 asking the petitioner to furnish ground wise submissions on the grounds of appeal if petitioner was not opting for VSV Scheme, 2020. This itself would mean the delay also has been condoned. 9. In our view, order of rejection dated February 26, 2021 is bad in law and is accordingly set aside. Respondent no.2 is directed to process the forms filed by petitioner under the provisions of VSV Act. 10. In our view, therefore, the order of rejection issued by respondent no.1 is bad in law. Respondent no.1 is directed to process the declaration cum undertaking filed by petitioner under the provisions of VSV Act and pass orders accordingly. 11. Petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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