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TMI Blog2024 (8) TMI 1245X X X X Extracts X X X X X X X X Extracts X X X X ..... be issued and the total liability determined and conferred finality in terms as contemplated under the provisions of the DTVSV Act. 3. It is thereafter that the respondents sought to invoke the power conferred by Section 154 of the Act to revisit a computation of liability which stood settled, at least upto the stage of the Commissioner of Income Tax (Appeals) [CIT(A)]. That action undisputedly was commenced after the issuance of Form 5 under the DTVSV Act. It is in the aforesaid backdrop that the writ petitioner impugns the action for rectification. 4. For the purposes of disposal of the instant writ petition, we take note of the following salient facts. The dispute itself pertains to Assessment Year [AY] 2015-16 and in respect of which the petitioner filed a Return of Income on 15 September 2015 declaring a total income of INR 50,31,150/- The aforesaid Return is stated to have been processed in terms of Section 143 (1) of the Act. On 22 December 2017, the case of the petitioner was selected for scrutiny assessment and pursuant to the same, a final assessment order under Section 143 (3) of the Act came to be framed whereby additions to the tune of INR 54,50,438/- were made to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the appeal before Ld. CIT(A) grant part relief to the assessee and the income is recomputed at Rs. 1,04,50,164/-. On perusal of record, it is found that the wrong tax rate was charged on the additions made by the AO, therefore, notice u/s 154 was issued to the assessee on 08/03/3022. In response the assessee has filed its reply through email on 14/03/2022. The reply filed by the assessee was duly considered but not found tenable. Accordingly, income assessed at Rs. 1,04,50,164/-. Give credit of prepaid taxes. Prepare computation sheet with charging correct tax rate on the additions made. Issue demand notice." 8. As is manifest from a perusal of the reasons which have ultimately been assigned for the purposes of justifying the action for rectification, the respondents take the view that the Assessing Officer [AO] while computing the additions in the original order of assessment had referred to and applied an incorrect tax rate. It becomes relevant to note that the original order of assessment had been made as far back as on 22 December 2017. Although the matter travelled to the CIT (A) thereafter, the said authority while according part relief had recomputed the taxable i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (1) of Section 5 and furnish proof of such withdrawal alongwith the intimation of payment to the designated authority under sub-section (2) of Section 5. (4) Where the declarant has initiated any proceeding for arbitration, conciliation or mediation, or has given any notice thereof under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India whether for protection of investment or otherwise, he shall withdraw the claim, if any, in such proceedings or notice after issuance of certificate under sub-section (1) of Section 5 and furnish proof of such withdrawal alongwith the intimation of payment to the designated authority under sub-section (2) of Section 5. (5) Without prejudice to the provisions of sub-sections (2), (3) and (4), the declarant shall furnish an undertaking waiving his right, whether direct or indirect, to seek or pursue any remedy or any claim in relation to the tax arrear which may otherwise be available to him under any law for the time being in force, in equity, under statute or under any agreement entered into by India with any country or territory outside India whether for protect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by clarified that making a declaration under this Act shall not amount to conceding the tax position and it shall not be lawful for the income-tax authority or the declarant being a party in appeal or writ petition or special leave petition to contend that the declarant or the income-tax authority, as the case may be, has acquiesced in the decision on the disputed issue by settling the dispute." 13. As we go through the provisions made in Sections 4 and 5, it becomes apparent that the Designated Authority upon receipt of a declaration made and referable to Section 4 is obliged to determine the amount payable by the declarant in accordance with the provisions of the DTVSV Act. To facilitate the aforesaid, the Designated Authority is required to grant a certificate which would encapsulate particulars of the tax arrears and the amount payable upon such determination. In terms of sub-section (2) of Section 5, the declarant is thereafter statutorily placed under an obligation to pay the amount as determined under sub-section (1) within 15 days of the receipt of the certificate and duly intimate the Designated Authority of compliance. 14. Of significance are the provisions made in sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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