Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 92 - TELANGANA HIGH COURTApplicability of the DTVSV Act - Eligibility or otherwise of the petitioner to avail benefit under the scheme - Non acceptance of declaration in Form No.1 filed by the petitioner - applicability of the DTVSV Act denied solely on the basis of the filing of objections - extending the benefit only to an assessee who has filed objections to the draft assessment order and denying it to one who chooses not to file objections to the draft assessment order for various reasons - HELD THAT:- The declaration form is one which is designed under the rules framed under the DTVSV Act.Secondly, based on the clauses contained in the declaration form, the eligibility/applicability of the DTVSV Act cannot be put to test. Thirdly, the interpretation sought to be placed by reading the said sentence in isolation runs contrary to the earlier part of the clarification, wherein it is mentioned that ‘assessee decides not to file objections with the DRP and is waiting for final order to be passed by AO, against which, he can file appeal with the Commissioner (Appeals)’. Once, an assessee decides not to file an appeal, it is irrelevant whether time for filing objection has expired or not. If the time for filing objections has expired, the consequences would be that the proposals made in the draft assessment order would be confirmed. Therefore, the proposals made in the draft assessment order would only get converted into Final order, which can be appealed against. If time to file objections has not yet expired, the assessee can decide for settling the dispute under the scheme. Either ways, the benefit of the applicability of the DTVSV Act cannot be denied solely on the basis of the filing of objections or not. Thus, the acceptance of the said contention advanced by the respondent would make the clarification issued by the 3rd respondent vide answer to question No.16 of FAQs, otiose and redundant. As noted in the opening remarks, the DTVSV Act being a beneficial piece of legislation, resort should be made to liberal interpretation rather than literal interpretation, which would render the entire scheme inoperable. In view of the conclusions arrived at as above, the petitioner is entitled to succeed in this Writ Petition. Writ petition is allowed; the impugned proceeding of the 1st respondent dt.30.04.2021 is hereby set aside; the 1st respondent is directed to accept the declaration in Form No.1 filed by the petitioner on 30.03.2021, process the same in accordance with the DTVSV Act of 2020; issue Form No. 3; and permit the petitioner to make the payment of disputed tax as declared in the declaration Form No.1, before the due date as notified.
|