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TMI Blog2022 (6) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... cheme introduced vide the Vivad se Vishwas Act, in our considered view, extension of limitation granted by the Supreme Court cannot be applied to belated filing of declaration. As a matter of fact, filing of declaration in terms of the Vivad se Vishwas Act, is neither a judicial act nor a quasi-judicial act. It was intended as a one time measure for an eligible declarant to file the declaration within the prescribed period and avail the benefits thereunder. Petitioners having filed the declarations in the third week of June, 2021 much after the last date of filing i.e. 31.03.2021 were not eligible to claim any benefit under the Vivad se Vishwas Act. Therefore, their declarations were rightly not accepted. Extension of the last date for payment of dues as determined by the designated authority in terms of the Vivad se Vishwas Act till 31.08.2021 or till 31.10.2021 by the CBDT cannot be pressed into service by the petitioners to seek extension of the last date for filing declaration. Firstly, in the case of the former, CBDT issued press release on 25.06.2021. No such press release or notification was issued by the CBDT in the case of the latter. Secondly and fundamentally, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent order was passed whereunder agricultural income declared by the petitioner was added to the income of the petitioner as the income from other sources . 7. Petitioner preferred appeals before the Commissioner of Income Tax (Appeals). However, the Commissioner of Income Tax (Appeals) did not accept the contention of the petitioner. Orders of the assessing officer were confirmed by dismissing the appeals. Thereafter, petitioner filed second appeals before the Income Tax Appellate Tribunal, Hyderabad SMC Bench, Hyderabad (Tribunal) questioning disallowance of agricultural income and addition thereof as income from other sources . By the order dated 22.04.2021, all the appeals filed by the petitioner were dismissed by the Tribunal. 8. In the meanwhile, Central Government enacted the Direct Tax Vivad se Vishwas Act, 2020 providing for settlement of pending income tax litigation. Objective of the aforesaid Direct Tax Vivad se Vishwas Act, 2020 (briefly, the Vivad se Vishwas Act , hereinafter) was to reduce pendency of direct tax litigation and at the same time to generate timely revenue for the Government. Thereafter, Central Government made the Direct Tax Vivad se Vishwas Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Agricultural income showed by the petitioner was added to her income as income from other sources . 14. Appeals filed by the petitioner before the Commissioner of Income Tax (Appeals) were not successful as the appeals were dismissed by the first appellate authority confirming the orders of the assessing officer. 15. Thereafter, petitioner preferred further appeals before the Tribunal. By the common order dated 22.04.2021, Tribunal dismissed the appeals of the petitioner and that of her son, petitioner in W.P.No.16888 of 2021. 16. When the Vivad se Vishwas Act was enacted, providing for certain benefits to eligible declarants, petitioner filed her declaration in the third week of June, 2021. However, the system did not accept such declarations and in the web portal it was mentioned that due date for filing Direct Tax Vivad se Vishwas Form I and II is over . 17. Aggrieved, present writ petition has been filed seeking the relief as indicated above. Additionally, petitioner seeks a direction to the respondents to permit the petitioner to file the Direct Tax Vivad se Vishwas declaration in terms of the Vivad se Vishwas Act and grant the relief(s). 18. Groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d reply affidavits to the counter affidavits filed by respondent Nos.1 to 4. While denying the contentions raised by the answering respondents in the counter affidavits, petitioners have reiterated the contentions made in the two writ petitions. 22. Detailed submissions have been made by learned counsel for the parties which are more or less on the pleaded lines. Therefore, a detailed reference to the same is considered not necessary. However, the submissions made have been considered. 23. At the outset, we may advert to the provisions of the Vivad se Vishwas Act. It is an Act to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. The statement of objects and reasons necessitating the enactment says that over the years pendency of appeals filed by the tax payers as well as by the Government has increased due to the fact that the number of appeals that are filed is much higher than the number of appeals that are disposed of. As a result, a huge amount of disputed tax arrears is locked up in these appeals. It was stated that as on 30.11.2019 the amount of disputed direct tax arrears was Rs.9.32 lakh crores, whereas actual direct tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned that the Vivad se Vishwas Act was published in the Gazette of India on 17.03.2020. Central Government issued notification dated 27.10.2020 which was published in the Gazette of India. It was notified that 31st day of December, 2020 shall be date on or before which a declaration shall be filed by the declarant to the designated authority in accordance with the provisions of Section 4 of the Vivad se Vishwas Act. The above notification was issued in exercise of powers conferred by Section 3. Subsequently, Central Government issued another notification dated 31.12.2020 extending the last date of filing from 31.12.2020 to 31.01.2021. This was followed by further notification dated 31.01.20221 whereby the last date was extended to 28.02.2021. Finally, vide the notification dated 26.02.2021, the last date was extended to 31.03.2021. 28. There is no dispute at the bar that the last date for filing declaration under Section 4 continued to remain 31.03.2021 and that there was no further extension. However, the specified date of 31.01.2020 remained unchanged. 29. As already noticed above, the Vivad se Vishwas Act was notified on 17.03.2020 when the pandemic was at the initial s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taking cognizance of the need for extension of limitation. In the said proceedings Supreme Court issued certain directions vide the order dated 23.03.2020. Relevant portion of the order dated 23.03.2020 reads as under: This Court has taken suo Motu cognizance of the situation arising out of the challenge faced by the country on account of Covid-19 Virus and resultant difficulties that may be faced by litigants across the country in filing their petitions / applications/suits/appeals/ all other proceedings within the period of limitation prescribed under the general law of limitation or under Special Laws (both Central and / or State). To obviate such difficulties and to ensure that lawyers / litigants do not have to come physically to file such proceedings in respective Courts / Tribunals across the country including this Court it is hereby ordered that a period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f. 15th March 2020 till further order/s to be passed by this Court in present proceedings. We are exercising this power under Article 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings. 37. Again on 27.04.2021, Supreme Court took note of the 2nd wave of Covid-19 pandemic. Therefore, on a miscellaneous application filed by the Supreme Court Advocates-on-Record Association, the initial order dated 23.03.2020 was restored and in continuation of the order dated 08.03.2021, directed that the period of limitation as prescribed under any general or special laws in respect of all judicial and quasi judicial proceedings whether condonable or not would stand extended until further orders. Relevant portion of the order dated 27.04.2021 is extracted hereunder: We also take judicial notice of the fact that the steep rise in COVID-19 Virus cases is not limited to Delhi alone but it has engulfed the entire nation. The extraordinary situation caused by the sudden and second outburst of COVID-19 Virus, thus, requires extraordinary measures to minimize the hardship of litig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... withstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 01.03.2022. In the event the actual balance period of limitation remaining, with effect from 01.03.2022 is greater than 90 days, that longer period shall apply. IV. It is further clarified that the period from 15.03.2020 till 28.02.2022 shall also stand excluded in computing the periods prescribed under Sections 23 (4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period (s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings. 40. Thus, Supreme Court extended the period of limitation till 28.02.2022, clarifying that the balance of the limitation period would become available from 01.03.2022. 41. From a careful perusal of the aforesaid orders passed by the Supreme Court, it is evident that by passing those orders Supreme Court, in exercise of its powers under Article 142 read with Article 141 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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