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2021 (7) TMI 171 - HC - Income TaxEligibility under the DTVSV Scheme - appeals against the orders passed u/s 143(1)(a)(i) or (ii) as a separate category from the appeals from Clauses (iii) to (vi) of 143(1)(a) - HELD THAT:- All the adjustments referred to under sub-clauses (i) to (vi) of clause (a) of Section 143(1) are indication of forming one category and as such are grouped under sub-clause (a) of Section 141(1). Classifying the adjustments in (iii) to (vi) of Clause(a) of Section 143(1) to be eligible under the DTVSV Scheme and excluding the adjustments referred to in (i) and (ii) under the circular No. 21 of 2020 without substantiating the same with any rationale or plausible basis or material therefore, would be arbitrary, unreasonable and discriminatory. The same would be in breach of Article 14 of Constitution of India and be liable to be set aside as such. Such a classification sought to be made would not be fitting into the requirements of intelligible differentia having nexus to the object to be achieved. Despite a query from the Court as to the purpose of this classification, there was no answer forthcoming from the Revenue. There does not appear to be any object to be achieved by such an unreasonable and arbitrary classification leading to discrimination among tax payers whose cases are falling in Clauses (i) or (ii) on one hand and those whose cases fall under Clauses (iii) to (vi) of Section 143(1)(a) of the IT Act. On which basis circular purports to exclude appeals arising from the orders passed u/s 143(1)(a)(i) or (ii). Neither there is reference to any basis for the same in the circular nor there is any provided in the affidavit-in-reply. Having regard to the provisions of the enactments and the rules thereunder, in the absence of any material, we are not in a position to appreciate that there is exclusion of appeals arising from orders passed under section 143(1) (a)(i) or (ii) of the IT Act. It is not the case that there is any particular object sought to be achieved by such exclusion of the appeals arising from the orders passed under section143(1)(a)(i) or (ii). When the circulars are issued exercising powers under sections 10 and 11 of DTVSV Act, directions are supposed to aid and smoothen bringing into operation provisions and execution of the actions based thereon. The directions, circulars would not be issued under such provisions digressing or deviating from the object and purpose under the scheme of the enactment. The situation thus emerges that answer to question No. 71 in the circular No. 21 of 2020 tends overreach the purpose and intendment underlying the provisions of the Act and the Rules and purports to exclude an otherwise eligible assessee on a ground and reason neither contained in nor reflected from the scheme. The circular is manifestly divorced from the object and purpose of DTVSV scheme. The answer to question no.71 purporting to exclude appeals against the orders under section 143(1)(a)(i) or (ii) is unsustainable and unacceptable. In the circumstances, emerging exclusion from the answer to question No. 71 of the circular No. 21 of 2020 dated 04.12.2020 is untenable and deserves to be set aside. We, therefore, set aside Answer to Question No. 71 of Circular No. 21 of 2020 dated 04.12.2020
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