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TMI Blog2024 (11) TMI 1107X X X X Extracts X X X X X X X X Extracts X X X X ..... to Question No. 61 provides that even if the Miscellaneous Application [ MA ] in respect of an appeal which was dismissed in limine was pending on before 31st January 2020, such MA is eligible. As apparent from the CBDT Circulars that pendency of arbitration proceedings and miscellaneous applications in certain cases, as on cutoff date would meet the requirement of Section 2(1)(j), even though no Appeal, Writ Petition or Special Leave Petition may be pending in any Appellate Forum in terms of Section 2(1)(j). It is well settled law that Department is bound by the circulars/instructions and has to comply with the same. The Hon ble Supreme Court has held in the case of Paper Products Ltd. [ 1999 (8) TMI 70 - SUPREME COURT] that circulars/instructions issued by CBE C are binding on the departmental authorities. They cannot take contrary stand and department cannot repudiate a circular on the basis that it was inconsistent with the statutory provision. Thus, the respondent is bound by the circular of CBDT issuing clarification. Even though, the scope of review is limited and statutorily different from an appeal, the jurisdiction of the Court extends to the power to modify, review or re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . JUSTICE RAVINDER DUDEJA For the Petitioner : Mr. Akhil Sibal, Sr. Advocate with Ms. Ranjana Roy Gawai, Ms. Vasudha Sen, Mr. Vineet Wadhwa, Ms. Deboshree Mukherjee and Mr. Krishnesh Bapat, Advs For the Respondents : Mr. Indruj Singh Rai, SSC with Mr. Sanjeev Menon, JSC, Mr. Rahul Singh, JSC and Mr. Anmol Jagga, Advocates JUDGMENT RAVINDER DUDEJA, J. 1. The present Writ Petition has been filed by the writ petitioner - assessee, challenging the order dated 28.01.2021, passed by respondent No. 1, dismissing the revised application filed by the petitioner on the internet portal of respondent No. 1 seeking to avail the benefit of Direct Tax Vivad Se Vishwas Act, 2020 [ DTVSV Act ] for the Assessment Year [ AY ] 2009-10. 2. As per the facts succinctly captured in our order dated 19.03.2021, Petitioner-assessee fought the Revenue upto the Supreme Court in respect of the assessment made qua AY 2009-10. He had succeeded before the Commissioner of Income Tax (Appeals) [ CIT(A) ]. The Income Tax Appellate Tribunal [ ITAT ] vide judgment dated 16.10.2017 upheld the order of CIT(A). 3. The order of the Tribunal was upheld by this Court vide judgment rendered on 26.02.2018. However, the Special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fits under the DTVSV Act. It has also been submitted that DTVSV Act came into force on 18.03.2020, while the review petition was filed on 18.11.2019 by the petitioner, and therefore, the present review application cannot, in any manner, be taken to be a colourable device on the part of the petitioner to avail the benefit of the scheme. It is stated that the review petition filed by the petitioner was bona fide and was pending as on 31.01.2020 i.e. the specified date under the DTVSV Act. The review petition being an extension of the appeal, the impugned order cannot be sustained, being contrary to the objective of DTVSV Act. 9. Per contra, learned counsel for the respondent has argued that no Appeal, Writ Petition or Special Leave Petition was pending as on the specified date i.e. on 31.01.2020 as the SLP had already been disposed of on 05.03.2019. Hence, upon a literal interpretation of Section 2(1)(a) and Section 2(1)(j), the petitioner is not an appellant under the DTVSV Act and therefore not eligible for seeking the benefit of the same. It is also submitted that a review petition is not an appeal, inasmuch as, the scope of review is different from that of an appeal. It is thus a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the whole of the disputed tax if the payment is made before the 31st day of March, 2020 and for the payments made after the 31st day of March, 2020 but on or before the date notified by Central Government, the amount payable shall be increased by 10 per cent of disputed tax; (d) in appeals related to disputed penalty, disputed interest or disputed fee, the amount payable by the declarant shall be 25 per cent of the disputed penalty, disputed interest or disputed fee, as the case may be, if the payment is made on or before the 31st day of March, 2020. If payment is made after the 31st day of March, 2020 but on or before the date notified by Central Government, the amount payable shall be increased to 30 per cent of the disputed penalty, disputed interest or disputed fee, as the case may be. 4. The proposed Bill shall come into force on the date it receives the assent of the President and declaration may be made thereafter up to the date to be notified by the Government. 11. A plain reading of Statement of Objects and Reasons clearly indicates that intent and purport behind the introduction of DTVSV Act was to reduce the tax disputes pertaining to Direct Taxes. While taking note of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 144-C of the Income-tax Act as on the specified date, the amount of tax payable by the appellant if the Dispute Resolution Panel was to confirm the variation proposed in the draft order; (E) in a case where Dispute Resolution Panel has issued any direction under sub-section (5) of Section 144-C of the Income-tax Act and the Assessing Officer has not passed the order under sub-section (13) of that section on or before the specified date, the amount of tax payable by the appellant as per the assessment order to be passed by the Assessing Officer under sub-section (13) thereof; (F) in a case where an application for revision under Section 264 of the Income-tax Act is pending as on the specified date, the amount of tax payable by the appellant if such application for revision was not to be accepted: Provided that in a case where Commissioner (Appeals) has issued notice of enhancement under Section 251 of the Income-tax Act on or before the specified date, the disputed tax shall be increased by the amount of tax pertaining to issues for which notice of enhancement has been issued: Provided further that in a case where the dispute in relation to an assessment year relates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xx xxxxx 22. The underlying objective of legislative forays seeking to accord amnesty, provide a closure to disputes and provide an avenue to assessees to bring litigation to an end was lucidly explained by our Court in MUFG Bank Ltd. vs. Commissioner of Income Tax9 as would be apparent from the following observations appearing therein:- 26. Having heard learned counsel for the parties, this Court is of the view that the primary question that needs to be answered is what is the rule of interpretation that the court must apply while interpreting the Dtvsv Act. 27. Every modern legislation is actuated with some policy. While the intent of taxing statutes is to collect taxes, the intent of amnesty acts like Voluntary Disclosure of Income Scheme (for short VDI Scheme ) is to provide an opportunity to the assesses to declare their undisclosed income on fulfilling certain terms and conditions. There are also legislations which are directed to cure some mischief and bring into effect some type of reform by improving the system or by relaxing the rigour of the law or by ameliorating the condition of certain class of persons who according to present day notions may not have been treated fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill remain open till 30-6-2020 . I hope that taxpayers will make use of this opportunity to get relief from vexatious litigation process . 31. From the aforesaid, it is apparent that Dtvsv Act, 2020 is a beneficial/remedial piece of legislation enacted by Parliament to reduce pendency of cases, generate timely Revenue for the Government and provide certainty and savings of resources that would be spent on the long drawn litigation process. It is a statute which provides benefit as it recovers the taxes for the department upfront without having to wait to succeed in the litigation which itself is uncertain. DTVSV Act also provides a sop to an assessee, as it puts an end to the litigation and the assessee is relieved of payment of interest and penalty if the same were to imposed. The Dtvsv Act also benefits the society as it reduces litigation, acrimony, decongests the courts and relieves the system of unnecessary burden. Consequently, this Court is of the view that Dtvsv Act is neither a taxing statute nor an amnesty act. It is a remedial/beneficial statute. 23. It is the aforenoted principles which would thus govern the interpretation that is liable to be accorded to the VSV Act. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Leave Petition was pending before the Appellate Forum. Mr. Sibal has drawn our attention to Clarification dated 22.04.2020, issued by the Central Board of Direct Taxes. As per response to Question-1, the proceedings initiated by the declarant by giving any notice for arbitration, conciliation or mediation are covered under the Act. Response to Question-2 clarifies that the assessee whose case is pending in arbitration, is eligible to apply for settlement under Vivad Se Vishwas , even if no appeal is pending. Reply to Question No. 61 provides that even if the Miscellaneous Application [ MA ] in respect of an appeal which was dismissed in limine was pending on before 31st January 2020, such MA is eligible. 16. It is apparent from the CBDT Circulars that pendency of arbitration proceedings and miscellaneous applications in certain cases, as on cutoff date would meet the requirement of Section 2(1)(j), even though no Appeal, Writ Petition or Special Leave Petition may be pending in any Appellate Forum in terms of Section 2(1)(j). 17. It is well settled law that Department is bound by the circulars/instructions and has to comply with the same. The Hon ble Supreme Court has held in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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