Revival of Withdrawn Proceedings on Default: failure to comply with DTVSV declaration revives proceedings and permits scheme relief.

Whether revision petitions withdrawn after filing a declaration under the Direct Tax Vivad Se Vishwas Act, 2020 are revived on the declarant's non compliance was resolved by construing Section 4(2) and 4(6) together: the court treated Section 4(6) as a legal fiction that a declaration is presumed never made on breach of the undertaking, and held that "all the proceedings and claims" and consequences under the Income tax Act include proceedings initiated by both Department and assessee (including revision petitions). Outcome: the withdrawn revision petitions stood automatically revived on default; the impugned rejection was set aside and relief granted to permit completion of scheme formalities.

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Issues: (i) Whether Revision Petitions withdrawn after filing declaration under the Direct Tax Vivad Se Vishwas Act, 2020 and subsequently not complied with, stood automatically revived by operation of law under Section 4(6) of the Direct Tax Vivad Se Vishwas Act, 2020, thereby entitling the petitioner to benefits under the DTVSV Scheme, 2024.

Analysis: The court examined Section 4 of the Direct Tax Vivad Se Vishwas Act, 2020, including sub-sections (2), (5) and (6), and Section 5(1). Section 4(2) provides that upon issuance of the certificate under Section 5(1) any pending appeal or revision is deemed withdrawn from that date. Section 4(6) creates a legal fiction that the declaration shall be presumed never to have been made where the declarant violates conditions or the undertaking in Section 4(5), and in such cases "all the proceedings and claims" withdrawn under Section 4 and "all the consequences under the Income-tax Act" shall be deemed revived. The court construed the phrase "all the proceedings and claims" and the consequences under the Income-tax Act as encompassing proceedings initiated by both the Department and the assessee (including revision petitions under Section 264 of the Income-tax Act, 1961). The court rejected the respondents' narrow reading that revival applies only to departmental proceedings, noting that the statutory language contains no such limitation and that a harmonious, purposive construction supports restoration of the parties to their original positions on default. The court also noted the petitioner had submitted the declaration and Form-3, but failed to make required payments and that Schedule-X referenced both tax and penalty; the omission to mention Section 271(1)(c) in Form-1 was treated as bona fide and inadvertent.

Conclusion: The Revision Petitions withdrawn after issuance of Form-3 stood automatically revived by operation of law upon the petitioner's failure to comply with the statutory conditions under Section 4(6) of the Direct Tax Vivad Se Vishwas Act, 2020. The impugned rejection dated 10.01.2025 is set aside and the petitioner is permitted to complete formalities to avail benefits under the DTVSV Scheme, 2024 within the timelines stated by the Court; relief is granted in favour of the assessee.

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