Sabka Vishwas Scheme payment failure due to technical glitch cannot defeat timely settlement attempt

Rejection of a taxpayer's request under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was held unjustified where payment was attempted within the prescribed time but failed because the amount was reverted due to an apparent technical glitch. The Court noted that repeated timely attempts to remit the declared amount supported bona fides and that a taxpayer should not suffer for a failure beyond control when the banking or electronic payment system malfunctions. The rejection was set aside and the matter remitted for fresh consideration in a pragmatic manner consistent with the object of the Scheme.

---

---

Issues: Whether the rejection of the assessee's request under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, on the ground that payment was not successfully received by the cut-off date, could be sustained when the assessee had attempted payment within time but the amount was reverted due to apparent technical failure.

Analysis: The Scheme was intended to give relief to taxpayers by enabling settlement of legacy dues on payment of the declared amount within the prescribed time. The record showed that the assessee attempted to make the payment on the last date through electronic transfer and, when the amount was reverted, made another attempt immediately thereafter. These repeated efforts supported the assessee's bona fides. The Court held that, if the failure occurred because of technical glitches in the banking or electronic payment system, the assessee should not be made to suffer for a circumstance beyond control. In that backdrop, the reiteration of the earlier rejection was found unjustified, and the matter required fresh consideration keeping in view the object of the Scheme.

Conclusion: The rejection of the assessee's claim was set aside and the matter was remitted for reconsideration with a direction to take a pragmatic view consistent with the purpose of the Scheme.

---