2024 (4) TMI 608 - SCH - Income Tax

Supreme Court Leaves Key Legal Question Unresolved as SLP Dismissed; Pending Applications Disposed.

The SC dismissed the SLP, leaving the question of law unresolved. All pending applications were disposed of. The bench comprised Justices P.S. Narasimha ... Eligibility of Vivad se Vishwas scheme - Denial of claim as prosecution proceedings u/s 276CC of the Act were instituted for the aforesaid assessment years before the date of filing of the declarations and the proceedings were pending - As decided by HC [2022 (7) TMI 286 - TELANGANA HIGH COURT] prosecution against petitioner No.1 is u/s 276 CC which pertains to failure to furnish return under Sections 139 (1) or under Section 153 A etc., of the Act. Such delayed filing of income tax returns cannot be construed to be a ‘tax arrear’ within the meaning of Section 2 (1) (o) of the Vivad se Vishwas Act. Therefore, such pending prosecution cannot be said to be in respect of tax arrear though it may be relatable to the assessment years in question and cannot render petitioner No.1 ineligible. Thus, rejection of the declarations of petitioner No.1 by the respondents cannot be sustained HELD THAT:- Having considered the matter in detail we dismiss this Special Leave Petition. However, we keep the question of law open. Pending application(s), if any, shall stand disposed of. The Supreme Court dismissed the Special Leave Petition but kept the question of law open. Pending applications were disposed of. Justices Pamidighantam Sri Narasimha and Aravind Kumar presided over the case.