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TMI Blog2024 (8) TMI 1245X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (2) of Section 5, the declarant is thereafter statutorily placed under an obligation to pay the amount as determined under sub-section (1) within 15 days of the receipt of the certificate and duly intimate the Designated Authority of compliance. Sub-section (1) of Section 5 clearly injuncts the respondents thereafter from reopening any matter covered by an order of determination made by the Designated Authority in any other proceedings under the Income Tax Act or, for that matter, any other law for the time being in force. We also bear in mind the provisions which stand enshrined in Section 4 (6). On a conjoint reading of Section 4 (6) alongside Section 5 (3), we find that the determination as carried out by the Designated Authority is clearly rendered finality and cannot possibly be reopened or revised by any authority under the Income Tax Act by taking recourse to a power which may otherwise be available to be exercised. As is manifest from a reading of those provisions, the only contingency where a determination made may be liable to be revisited or recalled would be where it is subsequently found that the application made by the declarant is found to suffer from an incorrec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isit a computation of liability which stood settled, at least upto the stage of the Commissioner of Income Tax (Appeals) [CIT(A)] . That action undisputedly was commenced after the issuance of Form 5 under the DTVSV Act. It is in the aforesaid backdrop that the writ petitioner impugns the action for rectification. 4. For the purposes of disposal of the instant writ petition, we take note of the following salient facts. The dispute itself pertains to Ass essment Year [AY] 2015-16 and in respect of which the petitioner filed a Return of Income on 15 September 2015 declaring a total income of INR 50,31,150/- The aforesaid Return is stated to have been processed in terms of Section 143 (1) of the Act. On 22 December 2017, the case of the petitioner was selected for scrutiny assessment and pursuant to the same, a final assessment order under Section 143 (3) of the Act came to be framed whereby additions to the tune of INR 54,50,438/- were made to the returned income of the writ petitioner and the total income was assessed at INR 1,04,81,590/-. The petitioner is stated to have assailed the aforesaid assessment order before the CIT(A) where those additions ultimately came to be upheld in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the assessee on 08/03/3022. In response the assessee has filed its reply through email on 14/03/2022. The reply filed by the assessee was duly considered but not found tenable. Accordingly, income assessed at Rs. 1,04,50,164/-. Give credit of prepaid taxes. Prepare computation sheet with charging correct tax rate on the additions made. Issue demand notice. 8. As is manifest from a perusal of the reasons which have ultimately been assigned for the purposes of justifying the action for rectification, the respondents take the view that the Assessing Officer [AO] while computing the additions in the original order of assessment had referred to and applied an incorrect tax rate. It becomes relevant to note that the original order of assessment had been made as far back as on 22 December 2017. Although the matter travelled to the CIT (A) thereafter, the said authority while according part relief had recomputed the taxable income of the petitioner at INR 1,04,50,164/-. Even at this stage, the issue of a wrong tax rate having been applied does not appear to have been either raised or alluded to. 9. We bear in mind the indisputable position that even if we were to assume that the power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice thereof under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India whether for protection of investment or otherwise, he shall withdraw the claim, if any, in such proceedings or notice after issuance of certificate under sub-section (1) of Section 5 and furnish proof of such withdrawal alongwith the intimation of payment to the designated authority under sub-section (2) of Section 5. (5) Without prejudice to the provisions of sub-sections (2), (3) and (4), the declarant shall furnish an undertaking waiving his right, whether direct or indirect, to seek or pursue any remedy or any claim in relation to the tax arrear which may otherwise be available to him under any law for the time being in force, in equity, under statute or under any agreement entered into by India with any country or territory outside India whether for protection of investment or otherwise and the undertaking shall be made in such form and manner as may be prescribed. (6) The declaration under sub-section (1) shall be presumed never to have been made if, (a) any material particular furnished in the declaration is found to be false ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the case may be, has acquiesced in the decision on the disputed issue by settling the dispute. 13. As we go through the provisions made in Sections 4 and 5, it becomes apparent that the Designated Authority upon receipt of a declaration made and referable to Section 4 is obliged to determine the amount payable by the declarant in accordance with the provisions of the DTVSV Act. To facilitate the aforesaid, the Designated Authority is required to grant a certificate which would encapsulate particulars of the tax arrears and the amount payable upon such determination. In terms of sub-section (2) of Section 5, the declarant is thereafter statutorily placed under an obligation to pay the amount as determined under sub-section (1) within 15 days of the receipt of the certificate and duly intimate the Designated Authority of compliance. 14. Of significance are the provisions made in sub-section (3) and which confer conclusiveness and finality on the amounts that may be determined under sub-section (1) of Section 5. The aforesaid provision clearly injuncts the respondents thereafter from reopening any matter covered by an order of determination made by the Designated Authority in any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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