Vivad Se Vishwas finality bars section 263 revision once the settled dispute cannot be reopened.

Once a dispute is conclusively settled under the Vivad Se Vishwas Scheme, the settled matter cannot be reopened through revisionary proceedings under section 263 of the Income-tax Act, 1961. The Gujarat High Court agreed that the scheme gives finality to the determination made under it, so issues covered by the settlement are barred from being revised on the ground that the original assessment was erroneous and prejudicial to the Revenue. The revision under section 263 was therefore impermissible, and the Tribunal's order quashing those proceedings was upheld.

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Issues: Whether the Revenue could invoke revisionary jurisdiction under section 263 of the Income-tax Act, 1961 after the assessee had opted for the Vivad Se Vishwas Scheme and the dispute stood settled.

Analysis: The dispute arose from the Revenue's attempt to revise the assessment under section 263 on the premise that the assessment order was erroneous and prejudicial to the interests of the Revenue. The Tribunal held that once the assessee had opted for the Vivad Se Vishwas Scheme and the settlement had attained finality, the matter covered by that settlement could not be reopened in any other proceeding. The Court agreed with that view, noting that the scheme and section 5 thereof give conclusive effect to the determination made under the scheme and bar reopening of issues already settled. In that background, initiation of revision under section 263 was held to be impermissible.

Conclusion: The revisionary proceedings under section 263 were barred and the Tribunal's order quashing them was in law.

Final Conclusion: No substantial question of law arose, and the tax appeal failed.

Ratio Decidendi: Once a dispute has been conclusively settled under the Vivad Se Vishwas Scheme, the matter covered by that settlement cannot be reopened by resort to revisionary proceedings under section 263 of the Income-tax Act, 1961.

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