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2023 (6) TMI 1291 - HC - Income TaxMiscellaneous Application u/s 254 (2) rejected as not covered under the Direct Tax Vivad Se Viswas Act, 2020 (‘DTVSV-A’) as it was not filed in pursuance of an appeal ‘dismissed in limine’ - HELD THAT:- As with regard to the condition in answer to FAQ 61, viz. ‘Appeal dismissed in limine’ we are of the view that the qualifying words ‘in limine’ that apparently restrict the eligible assessees for availing settlement under the DTVSV, are contrary to its object and reasons. The Apex Court in the case of UCO Bank, Calcutta [1999 (5) TMI 3 - SUPREME COURT] and Commissioner of Central Excise, Bolpur vs Ratan Melting & Wire Industries [2008 (10) TMI 5 - SUPREME COURT] the additional qualification viz. “in limine” added to the word Appeal is adverse to the assessee, against the mandate of DTVSV-A and thus contrary to law. It would be appropriate that the ratio laid down in the above cases with regard to ‘construing a remedial statute’ be followed in the present case in as much as DTVSV-A is a beneficial statute. The Delhi High Court in the case of Medeor Hospital Limited v Principal Commissioner of Income Tax [2022 (11) TMI 26 - DELHI HIGH COURT] and Tushar Agro Chemical [2021 (7) TMI 1267 - GUJARAT HIGH COURT] have held that CBDT cannot issue circulars adverse to the assessee. For the reasons aforesaid we hold that the FAQ 61 of the circular 21/2020 dated 4th December 2020 issued by the CBDT to the extent that it restricts appeals to the ones ‘dismissed in limine’ are not only adverse to the interest of the assessee but also contrary to the object and reasons of DTVSV-A. ORDER: FAQ No. 61 of the Circular 21 of 2020 issued by the Respondent no. 1 is struck down. The impugned rejection order dated 3rd August 2021 passed by Respondent No. 2 is quashed and set aside. The Respondent No. 2 is directed to issue acknowledgment in Form 3 against the application made by the Petitioner in Form 1 and Form 2.
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