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2023 (3) TMI 106 - BOMBAY HIGH COURTSettlement of disputes under the Direct Tax, Vivad Se Vishwas Act - Respondent No. 1 issued Form - 3 reflecting therein an amount as the balance amount payable after taking into account and adjusting the amounts of refund etc. for the relevant assessment year 2013-14 - HELD THAT:- It is clear that the spirit of the enactment was to unlock the amounts held up in disputes on account of pendency of various appeals filed by not only the tax payers but also the Government. The amount of disputed tax arrears as reflected in the Bill was an enormous amount of Rs.9.32 lakh crores, which reflected approximately one year’s direct tax collection. In the present case it can be seen that the Petitioner being eligible did apply for settlement of these disputes in terms of the Act. The Petitioner’s eligibility therefore is not in dispute. It is true that the Petitioner did not deposit the entire amount which was determined as payable by Respondent No. 1 and which ought to have been paid before the specified date. The specified date earlier fixed as per the Act was 31st March, 2020. The Petitioner was required to pay an amount of Rs.8,39,676/- before the said date, however in case the payment was made after 01st April, 2020, the amount payable was Rs.967194/- Petitioner had therefore admittedly not approached the authorities for depositing the balance amount within even the extended period up to 01st October, 2021. Petitioner never intended that its dispute with the department be not settled, nor would the Petitioner gain any unfair advantage by not paying the balance amount which was insignificant and small. In fact on the face of it it is clear that the payment which was required to be paid in terms of Form - 3 was short only by Rs.300/-. This clearly appears to us to be an inadvertent error on the part of the Petitioner, which is neither deliberate nor intentional. Considering the purpose and spirit of the act, which was noting but to unlock the amount of disputed tax before various appellate fora as also put an end to litigation, we feel that issuing a writ of mandamus in the present case, directing the Respondents to accept the balance payment would be nothing but in furtherance of the object for which the Direct Tax, Vivad Se Vishwas Act was enacted. We accordingly allow the present petition. The Respondent No. 1 is directed to accept the balance payment which remained to be paid in terms of Form - 3 alongwith interest at the rate of 10% per annum calculated on the said unpaid amount from the date of issuance of Form - 3. A Form - 5 be issued thereafter in terms of the scheme.
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