TMI Blog2023 (10) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... on 263 of the Act, when they were barred. - HONOURABLE MR. JUSTICE BIREN VAISHNAV And HONOURABLE MR. JUSTICE BHARGAV D. KARIA KARAN G SANGHANI, LD. SENIOR STANDING COUNSEL (7945) FOR THE APPELLANT(S) NO. 1 ORDER ( PER : HONOURABLE MR. JUSTICE BIREN VAISHNAV ) 1. This Tax Appeal challenges the order dated 18.04.2023 passed by the Income Tax Appellate Tribunal, Rajkot, in ITA No.30/Rjt/2023 for Assessment Year 2012-13. 2. Following substantial questions of law have been raised: (A) Whether on the facts of the case as well as in law, the Appellate Tribunal was justified in quashing the order under Section 263 of the Income Tax Act of Ld. PCIT when Explanation 2 of Section 263 of the Act expressly provides that it is final opinion of the Ld. Pr. CIT to deem an order prejudicial and erroneous to the interest of revenue? (B) Whether on the facts of the case as well as law, the Appellate Tribunal was justified in quashing the order under Section 263 of the Income Tax Act of Ld. PCIT especially when the Assessment Order passed by the AO is unsustainable in law? (C) Whether on the facts of the case as well as in law, the Appellate Tribunal was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elling the assessment u/s. 143(3) r.w.s. 147 of the Act and a direction to make a fresh assessment by conducting necessary inquiry and verification. 3.2 Being aggrieved with the said order u/s. 263 of the Act, the assessee filed an appeal before the Appellate Tribunal. The Appellate Tribunal has quashed the order of PCIT-1, Rajkot passed u/s. 263 of the Act. 4. The Tribunal while allowing the appeal of the assessee held as under: 7. We have carefully considered the facts of the matter and the judgment relied upon by the Ld. Counsel in the case of Gopala Krishnan Rajkumar vs. PCIT (supra). We find that the Hon ble Court has been pleased to observe opting the VSV Scheme and finalizing thereof is nothing but the closure of disputes in respect of tax arrears which cannot be subsequently reopened by issuing notice under Section 263 of the Act for revising the assessment order. Needless to mention that the view is squarely applicable in favour of the assessee before us. 8. Furthermore, Section 5 of the VSV Act prescribes as follows: 5. (1) The designated authority shall, within a period of fifteen days from the date of receipt of the declaration, by order, determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the finality of the benefit of the Vivad Scheme and Section 5 thereof and held as under: 9. In the decision of the Madras High Court in case of Gopalakrishnan (Supra) wherein also in the facts akin to the present one, the Madras High Court considered the provisions of the Scheme and interpreting Section 5 of the Act held as under : 39. The question therefore that arises for consideration is whether the impugned proceedings initiated after the petitioners opted to settle the dispute under the Direct Tax Vivad Se Vishwas Act, 2020 are sustainable or not? 40. The expression disputed tax has been denied in Section 27 of the Direct Tax Vivad Se Vishwas Act, 2020 reads as under: (j) disputed tax , in relation to an assessment year or financial year, as the case may be, means the income-tax, including surcharge and cess (hereafter in this clause referred to as the amount of tax) payable by the appellant under the provisions of the Income-tax Act, 1961, as computed hereunder: (A) in a case where any appeal, writ petition or special leave petition is pending before the appellate forum as on the specified date, the amount of tax that is payable by the appellant if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (k) Income-tax Act means the Income tax Act, 1961; (l) last date means such date as may be notified by the Central Government in the Official Gazette; (m) prescribed means prescribed by rules made under this Act; (n) specified date means the 31st day of January, 2020; (o) tax arrear means, (i) the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax, and penalty leviable or levied on such disputed tax; or (ii) disputed interest; or (iii) disputed penalty; or (iv) disputed fee, as determined under the provisions of the Income- tax Act. 41. As per Section 3 of the the Direct Tax Vivad Se Vishwas Act, 2020, notwithstanding anything contained in the Income Tax Act or any other law for the time inforce the amount payable by a declarant shall be as specified in the table to the said section. 42. As per Section 4(6) of the Direct Tax Vivad Se Vishwas Act, 2020, the declarations filed under Section(1) shall be presumed to have never been made if : - a) Any material particular furnished in the declaration is found to be false at any stage; b) The declarant violates an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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