Court grants liberty for restoration under Vivad Se Vishwas Act, 2020 without deciding substantial questions of law.

The appeals were disposed of with liberty for restoration, as the court found it unnecessary to decide the substantial questions of law due to the enactment of the Vivad Se Vishwas Act, 2020. The appellant was directed to file Form No.I by a specified date for resolution under the Act, with the competent authority instructed to process the declaration promptly. The court granted liberty to restore the appeals if the decision on the filed declaration is unfavorable, without requiring a formal application for condonation of delay. No costs were awarded in this judgment.

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Issues:
Appeal against order passed by Income Tax Appellate Tribunal regarding disallowance of expenses for earning contract income; interpretation of reassessment in recipient's hands; interference with order under Section 254(2) of the Income Tax Act, 1961.

Analysis:
The appeals were filed by the assessee challenging the order of the Income Tax Appellate Tribunal regarding the disallowance of expenses for earning contract income. The substantial questions of law raised included the correctness of the Tribunal's decision in sustaining the disallowance despite the acceptance of income by the recipient in reassessment, the oversight of reassessment in the recipient's hands, and the failure to rectify the order under Section 254(2) of the Act. The appellant's counsel submitted the intention to avail the Vivad Se Vishwas Scheme, which provides for the resolution of disputed tax matters. Due to subsequent developments with the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, the court found it unnecessary to decide the substantial questions of law.

The Vivad Se Vishwas Act, 2020 allows declarants to resolve tax disputes pending at various levels. The Act defines "disputed tax" and provides options for declarants to file declarations with the designated authority. Provisions under Sections 3, 4, and 5 determine the amount payable by declarants and the time and manner of payment. Immunity from proceedings and penalties in certain cases is granted under Section 6. The Act specifies cases where it will not be applicable under Section 9. The assessee was granted liberty to restore the appeals if the decision on the filed declaration is unfavorable, without requiring a formal application for condonation of delay.

The court directed the appellant to file Form No.I by a specified date and instructed the competent authority to process the declaration promptly upon filing. The appeals were disposed of with liberty for restoration, leaving the substantial questions of law open. No costs were awarded in this judgment.

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