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TMI Blog2022 (8) TMI 1362X X X X Extracts X X X X X X X X Extracts X X X X ..... r as the prejudicial to the Revenue. Even, there is no whisper about the facts how the A.O has not made proper disallowance of expenses relatable to exempt income while invoking the provisions of s. 14A of the Act r/w Rule 8D(2) of the Rules. We have extracted the findings of PCIT and there is no whisper or no discussion at all as to how and which expenses are relatable to exempt income . See GOPALAKRISHNAN RAJKUMAR, GOPALAKRISHNAN RAVIM case [ 2022 (5) TMI 1388 - MADRAS HIGH COURT] as held taxpayers whose appeals were pending at any level were entitled to avail benefit of the scheme. Therefore, there is no justification in proceeding further with the impugned proceedings initiated by the first respondent under Section 263. The Hon ble High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under the Direct Tax Vivad Se Vishwas Act, 2020 (VSVS Act, 2020) in Form No. 5 dated 23rd April, 2021 and hence cannot be again subject to revisionary proceedings. 2. The learned PCIT has erred by not considering the provisions of Section 5(3) of the VSVS Act 2020, whereby it is stated that the orders passed under sub-section (1) of the said Act shall be conclusive as to the matters stated therein and no matter covered by such order shall be reopened in any other proceeding. 3. The learned PCIT had ignored the fact that the appellant had preferred an appeal before the C1T(A) against the impugned order u/s 143(3) dated 6th January, 2020 and the order dismissing the appeal was received on 12th May, 2021 pursuant to filing a request for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issues. 6. In the present case, it is clear that the Assessing Officer had not made proper additions u/s.14A of the Act r.w. Rule 8D correctly. Therefore, I hereby set-aside the assessment order directing him to compute the disallowances under rule 8D correctly after affording reasonable opportunities of beard heard to the Assessee. While computing income, the balance tax and interest payable, the Assessing Officer should give proper allowance for the tax paid under the DTVSV Act, 2020." 4. The Ld. Counsel for the assessee argued on behalf of the assessee and on the other hand, the Ld. CIT-DR argued on behalf of Revenue. We have gone through the revision order as well as the assessment order and find that the PCIT has nowhere gone into t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vivad Se Vishwas Act, 2020, is to bring a closure of disputes in respect of tax arrears. Whether the petitioner had correctly or wrongly availed the benefit of Section 57(F) of the Income Tax Act or not cannot be re-opened once again under Section 263 of the Income Tax Act, 1961. 46. Once the petitioners had opted to settle the dispute under the Direct Tax Vivad Se Vishwas Act, 2020, the proceedings initiated under Section 263 have to go. If on the other hand the respective petitioners had not filed Form 1 and 2 or not accepted with the issue of Form 3, the Impugned Notice seeking to re-open the assessment under Section 263 of the Income Tax Act, 1961 could be justified. 47. The Finance Minister in her speech on 01.02.2020 announced the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h power to be exercised only upon being satisfied with such disclosure. It is also open to such authority not to accept such declaration. But once accepted, the same attains finality. The scheme does not empower and/or authorise the competent authority to reopen and/or revise a decision taken on such declaration. It is well settled that a statutory authority has to function within the limits of the jurisdiction vested with him under the statute. Thus, once the declaration is accepted by the PCIT such authority is estopped from taking any steps which would in effect amount to reopening and/or revising the decision already taken on such declaration. The said scheme was introduced in order to encourage an assessee to make a disclosure of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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