Direct Tax Vivad Se Vishwas scheme allows settlement of selected appeals from the same assessment year despite other pending proceedings.

Under the Direct Tax Vivad Se Vishwas scheme, an eligible applicant may opt to settle one or more pending appeals or SLPs arising from the same assessment year without including every connected proceeding. The Delhi HC held that rejection of a declaration cannot rest solely on the ground that other related appeals or an SLP remain pending for that year. Applying its contemporaneous connected decision, the Court found the revenue's rejection unsustainable and directed processing of the Forms under the scheme.

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Issues: Whether an assessee could seek settlement under the Direct Tax Vivad Se Vishwas scheme in respect of one appeal or SLP arising from the same assessment year, while other connected appeals or an SLP remained pending.

Analysis: The petitioner's declaration was rejected on the premise that the settlement request covered only one part of the disputes pending for the assessment year. The Court noted that the point was covered by its contemporaneous decision in a connected writ petition, where it had concluded that an applicant may choose to settle one or more appeals or SLPs arising from a given assessment year under the scheme.

Conclusion: The rejection was unsustainable and the assessee was entitled to seek settlement of the selected matter under the scheme.

Final Conclusion: The writ petition succeeded, the impugned rejection was set aside, and the revenue was directed to proceed with processing of the Forms under the scheme.

Ratio Decidendi: Under the Direct Tax Vivad Se Vishwas scheme, an eligible applicant may opt to settle one or more pending appeals or SLPs arising from the same assessment year, and rejection cannot rest solely on the fact that all connected proceedings were not included.

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