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2020 (11) TMI 484 - HC - Income TaxBenefit of Vivad Se Vishwas Scheme ('VVS Scheme') - Substantial Questions of Law framed for consideration on account of certain subsequent developments - Option to appeal in case application for settlement is rejected - 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. As observed, 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. In the light of the above, We direct the appellant / assessee to file the Form No.I on or before 20.11.2020 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:
1. Challenge to the order of the Income Tax Appellate Tribunal for the Assessment Year 2011-12. 2. Consideration of exemption in the sale of agricultural land and deduction under section 54F of the Income Tax Act. 3. Disallowance of cost of improvement in providing Modern Kitchen in the flats purchased. 4. Benefit of Vivad Se Vishwas Scheme for resolving tax disputes. 5. Interpretation and application of the Direct Tax Vivad Se Vishwas Act, 2020. Analysis: The appellant challenged the order of the Income Tax Appellate Tribunal for the Assessment Year 2011-12 under Section 260 A of the Income Tax Act, 1961. The Substantial Questions of Law raised included the consideration of exemption in the sale of agricultural land, deduction under section 54F of the Income Tax Act, and the disallowance of the cost of improvement in providing Modern Kitchen in the flats purchased. The appellant intended to avail the benefit of the Vivad Se Vishwas Scheme to resolve tax disputes and was taking steps to file the application in Form No.I. The Court noted subsequent developments related to the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, aimed at resolving disputed tax matters. The Act provided declarants with the option to settle tax disputes pending at different levels. The Act defined "disputed tax" and outlined the process for filing declarations and determining the amount payable by the declarant. Provisions under Sections 3, 4, 5, and 6 of the Act detailed the procedure for resolving tax disputes and granting immunity from penalties in certain cases. The Court directed the appellant to file Form No.I before a specified date and instructed the competent authority to process the application in accordance with the Act promptly. The Court granted the appellant liberty to restore the appeal if the decision on the declaration filed under Section 4 was not favorable. The Tax Case Appeal was disposed of with the mentioned liberty, leaving the Substantial Questions of Law open for future consideration. No costs were awarded in this judgment.
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