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2020 (11) TMI 143 - HC - Income TaxBenefit of Vivad Se Vishwas Scheme ('VVS Scheme') - Substantial Questions of Law framed for consideration on account of certain subsequent developments - assessee has been given an option to put an end to the tax disputes, which may be pending at different levels either before the First Appellate Authority or before the Tribunal or before the High Court or before the Hon'ble Supreme Court of India - HELD THAT - It may not be necessary for this Court to decide the Substantial Questions of Law framed for consideration on account of certain subsequent developments. The Government of India enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. The Act of the Parliament received the assent of the President on 17th March 2020 and published in the Gazette of India on 17th March 2020. In terms of the said Act, the assessee has been given an option to put an end to the tax disputes, which may be pending at different levels either before the First Appellate Authority or before the Tribunal or before the High Court or before the Hon'ble Supreme Court of India. The assessee is given liberty to restore this appeal in the event the ultimate decision to be taken on the declaration to be filed by the assessee under Section 4 of the said Act is not in favour of the assessee. If such a prayer is made, the Registry shall entertain the prayer without insisting upon any application to be filed for condonation of delay in restoration of the appeal and on such request made by the assessee by filing a Miscellaneous Petition for Restoration, the Registry shall place such petition before the Division Bench for orders. We direct the appellant / assessee to file the Form No.I on or before 09.11.2020 and the competent authority shall process the application / declaration in accordance with the Act and pass appropriate orders as expeditiously as possible preferably within a period of six (6) weeks from the date on which the declaration is filed in the proper form.
Issues:
Appeal against order passed by Income Tax Appellate Tribunal regarding disallowance of expenses for earning contract income; interpretation of reassessment in recipient's hands; interference with order under Section 254(2) of the Income Tax Act, 1961. Analysis: The appeals were filed by the assessee challenging the order of the Income Tax Appellate Tribunal regarding the disallowance of expenses for earning contract income. The substantial questions of law raised included the correctness of the Tribunal's decision in sustaining the disallowance despite the acceptance of income by the recipient in reassessment, the oversight of reassessment in the recipient's hands, and the failure to rectify the order under Section 254(2) of the Act. The appellant's counsel submitted the intention to avail the Vivad Se Vishwas Scheme, which provides for the resolution of disputed tax matters. Due to subsequent developments with the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, the court found it unnecessary to decide the substantial questions of law. The Vivad Se Vishwas Act, 2020 allows declarants to resolve tax disputes pending at various levels. The Act defines "disputed tax" and provides options for declarants to file declarations with the designated authority. Provisions under Sections 3, 4, and 5 determine the amount payable by declarants and the time and manner of payment. Immunity from proceedings and penalties in certain cases is granted under Section 6. The Act specifies cases where it will not be applicable under Section 9. The assessee was granted liberty to restore the appeals if the decision on the filed declaration is unfavorable, without requiring a formal application for condonation of delay. The court directed the appellant to file Form No.I by a specified date and instructed the competent authority to process the declaration promptly upon filing. The appeals were disposed of with liberty for restoration, leaving the substantial questions of law open. No costs were awarded in this judgment.
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