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2017 (9) TMI 741 - HC - Income TaxTax amnesty schemes - Whether the appeal before CIT(A) would be terms as pending where the higher appellate authority set aside the order and restore the same before CIT(A) - Applications for settlement under the Direct Tax Dispute Resolution Scheme 2016 rejected - Held that:- As noticed that the Scheme was promulgated with effect from 1.6.2016. The appellate Commissioner disposed of the appeal on 2.6.2016. There is of course, no bar in the appellate Commissioner proceeding ahead with the pending appeals merely because the Scheme was promulgated nor we see any lack of bona fide on his part in doing so. However merely because by reviving the appeals before the Commissioner, the petitioner may get benefit of the Scheme on the ground that the appeal would now be deemed to be pending on the date of declaration, should not persuade us to take a view any different from what we normally would have in such set of facts and circumstances. If by setting aside the appellate order and placing it back before the Commissioner for fresh disposal after giving an opportunity of hearing to the assessee, the resultant effect unintended or indirectly is that the petitioner's declaration of the Scheme becomes valid, so be it. The tax amnesty schemes are neither unknown nor uncommon. The legislation often times comes up with Schemes to reduce tax litigations offering reduced tax or immunity from penalty or prosecution, the prime purpose being reduction of pending taxation related litigation. The idea behind promulgation of the Scheme is not to make the Scheme and then to deny the benefit of the Scheme to as many people as possible. The idea is always to give the benefit of the Scheme to one who is otherwise eligible, makes the declaration and fulfills all conditions of the Scheme. Under the circumstances, impugned orders AnnexureB to both the petitions by which the appellate Commissioner disposed of the respective appeals, are set aside. The appeal proceedings for the assessment years 2007-2008 and 2011-2012 are revived and placed back before the appellate Commissioner Resultantly, the impugned orders at AnnexureA in both the petitions by which the designated authority had rejected the petitioner's declaration under the Scheme are also set aside. The designated authority shall take into account the changed circumstances arising out of this judgment and proceed as if on the date of the declaration for the assessment years 2007-2008 and 2011-2012, the appeals of the petitioner were pending.
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