Finality under the Vivad se Vishwas scheme bars Section 154 rectification unless the scheme expressly allows it.

An order passed under the Direct Tax Vivad se Vishwas Act, 2020 was not amenable to rectification under Section 154 of the Income-tax Act, 1961 because the scheme did not confer any rectification power and Section 5(3) made the amount determined and the order passed under the scheme final and conclusive. The Income-tax Act was not otherwise made applicable to the scheme, so the attempted rectification was contrary to the governing statute and without authority. The impugned rectification order was therefore liable to be quashed and set aside.

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Issues: Whether an order passed under the Direct Tax Vivad se Vishwas Act, 2020 could be rectified by invoking Section 154 of the Income-tax Act, 1961, and whether the impugned rectification order was sustainable.

Analysis: The rectification order sought to amend an order originally passed by the Principal Commissioner of Income Tax under the scheme of the Direct Tax Vivad se Vishwas Act, 2020. The scheme itself did not confer any power of rectification, and Section 5(3) declared the amount determined and the order passed under the scheme to be final and conclusive. The provisions of the Income-tax Act, 1961 were not made applicable to that scheme. On that basis, the invocation of Section 154 of the Income-tax Act, 1961 was held to be contrary to the governing statute.

Conclusion: The rectification order was without authority under the Direct Tax Vivad se Vishwas Act, 2020 and was liable to be quashed and set aside.

Final Conclusion: The writ petition succeeded, and the impugned rectification order was annulled.

Ratio Decidendi: An order passed under a settlement scheme that is declared final and conclusive cannot be rectified by invoking the general rectification provision of the Income-tax Act, 1961 unless the scheme itself expressly applies that provision.

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