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2021 (9) TMI 1280 - HC - Income TaxBenefit of the VSV Act - Rejection of declaration and undertaking filed under the provisions of Direct Tax Vivad Se Vishwas Act 2020 (the VSV Act) as there is no disputed income as the return filed by assessee has been accepted in assessment proceedings and as assessee has disputed interest charged u/s 234A/B/C and interest charged is mandatory and there is disputed income - HELD THAT:- The VSV Act was enacted to provide for resolution of disputed tax and for matters connected therewith and incidental thereto. In the VSV Act, there is no provision to exclude interest charged under Section 234A, 234B or 234C of the Act as stated in the order impugned. The disputed interest is defined under Sub Clause h (ii) of Sub Section 1 of Section 2 to mean “the interest determined in any case under the provisions of the Income Tax Act, 1961 where an appeal has been filed by the appellant in respect of such interest”. Appellant means under Clause a (i) of Sub Section 1 of Section 2 “a person in whose case an appeal or a writ petition or special leave petition has been filed either by him or by the Income Tax Authority or by both, before an appellate forum and such appeal or petition is pending as on the specified date”. Therefore, petitioner was eligible to file this declaration under the VSV Act for the disputed interest that was charged under Section 234A or Section 234B or Section 234C. The concerned authority was, therefore, not correct in rejecting the declaration of petitioner for reasons quoted above. Thus the order of rejection issued by respondent no.1 is bad in law. Respondent no.1 is directed to process the declaration cum undertaking filed by petitioner under the provisions of VSV Act.
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