Court orders reconsideration of tax declaration applications under Vivad Se Vishwas Act, emphasizing validity of appeals with delay condonation.

The court allowed the writ petitions, remitting the matter back to the respondent to reconsider the applications for declaration under Sections 3 and 4 of the Direct Tax Vivad Se Vishwas Act, 2020, on their merits. The court emphasized that appeals pending with delay condonation applications should be treated as valid appeals for the purposes of the Act, aligning with the consistent legal principles established by higher courts.

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Issues Involved:
1. Interpretation and implications of the term "specified date" under the Direct Tax Vivad Se Vishwas Act, 2020.
2. Validity of appeals pending with delay condonation applications.
3. Applicability of Sections 3 and 4 of the Direct Tax Vivad Se Vishwas Act, 2020.
4. Legal status of appeals filed under Section 249 (2) of the Income Tax Act.

Detailed Analysis:

1. Interpretation and Implications of the Term "Specified Date" under the Direct Tax Vivad Se Vishwas Act, 2020:
The court examined the term "specified date" as defined under Section 2(n) of the Act, which is 31st January 2020. The court noted that the appeals of the petitioners were pending before this date, thus meeting the criteria set by the Act. The court emphasized that the "specified date" is crucial for determining the applicability of the Act's provisions.

2. Validity of Appeals Pending with Delay Condonation Applications:
The court addressed the argument that appeals filed with delay condonation applications should not be considered pending appeals. The court referenced the Supreme Court's judgment in Raja Kulkarni Vs. State of Bombay (AIR 1954 SC 73), which held that an appeal is considered pending even if it is accompanied by a delay condonation application. The court further supported its stance by citing the case of Commissioner Income Tax, Rajkot Vs. Shatrusailya Digvijaysingh Jadeja (Civil Appeal No. 4411 of 2003), where the Supreme Court ruled that appeals pending with delay condonation applications are to be treated as valid appeals.

3. Applicability of Sections 3 and 4 of the Direct Tax Vivad Se Vishwas Act, 2020:
Sections 3 and 4 of the Act were scrutinized to determine if the petitioners' cases fell within their scope. Section 3 specifies the conditions under which a declaration can be made, and Section 4 outlines the procedure for filing such a declaration. The court concluded that since the appeals were pending as of the specified date, the petitioners were entitled to seek relief under these sections. This interpretation was reinforced by the Gujarat High Court's judgment in Ritesh Bakuleshbhai Mehta Vs. The Principal Commissioner of Income Tax, which supported the notion that appeals pending with delay condonation applications are valid for the purposes of the Act.

4. Legal Status of Appeals Filed under Section 249 (2) of the Income Tax Act:
The court examined whether the appeals filed under Section 249 (2) of the Income Tax Act, which were pending with delay condonation applications, should be considered valid. The court referenced multiple judgments, including the Supreme Court's ruling in Dr. Renuka Datla Vs. Commissioner Income Tax (2003) 2 SCC 19, which held that appeals pending with delay condonation applications are to be treated as pending appeals. The court concluded that the appeals of the petitioners, filed in 2017 and pending as of the specified date, should be considered valid and pending for the purposes of the Act.

Conclusion:
The court allowed the writ petitions, remitting the matter back to the respondent to reconsider the applications for declaration under Sections 3 and 4 of the Direct Tax Vivad Se Vishwas Act, 2020, on their merits. The court emphasized that appeals pending with delay condonation applications should be treated as valid appeals for the purposes of the Act, aligning with the consistent legal principles established by the Supreme Court and other High Courts.

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