Form 3 under Vivad Se Vishwas set aside where tax calculations needed reworking and fresh forms could be issued

Under the Direct Tax Vivad Se Vishwas Act, 2020, Form 3 notices were found unsuitable to remain in their existing form where the revenue ed that the underlying tax calculations required reworking in line with its counter-affidavit. The Delhi HC therefore set aside the impugned forms and permitted the revenue to recalculate the figures and issue fresh forms if warranted. The petitioners were left at liberty to challenge any fresh forms in accordance with law. The matter did not proceed to a merits adjudication on the validity of the original forms.

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Issues: Whether the impugned Form 3 issued under the Direct Tax Vivad Se Vishwas Act, 2020 was liable to be set aside and replaced by fresh forms after reworking the tax calculations in accordance with the revenue's stand.

Analysis: The parties did not press for a merits adjudication on the validity of the impugned forms. The revenue ed that the calculations underlying the forms required reworking to align them with the position taken in the counter-affidavit, and indicated that fresh forms may be necessary. In that situation, the forms already issued could not be retained in their existing form, and the appropriate course was to set them aside with liberty to the revenue to recalculate and issue fresh forms, if warranted.

Conclusion: The impugned Form 3 notices were set aside, with liberty to the revenue to rework the calculations and issue fresh forms, and the petitioners were left free to challenge any fresh forms in accordance with law.

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