Vivad se Vishwas settlement finality bars remand-based appellate and consequential assessment proceedings after Form No. 4 issuance.

Acceptance of settlement under the Direct Tax Vivad se Vishwas Scheme, payment of the determined amount, and issuance of Form No. 4 render the relevant assessment conclusive and final. Where the appellate authority is notified of a pending settlement application and Form No. 2, it should defer disposal rather than remand the assessment, and thereafter dispose of the appeal consistently with the final settlement certificate. Continuing remand-based and consequential assessment proceedings after Form No. 4 creates unwarranted multiplicity of litigation. The settlement certificate remains conclusive, so appellate, Tribunal and consequential proceedings founded on the remand cannot continue.

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Issues: Whether appellate and consequential assessment proceedings could continue after acceptance of settlement under the Direct Tax Vivad se Vishwas Scheme, 2024 and issuance of Form No. 4.

Analysis: The acceptance of the settlement application, payment of the determined amount, and issuance of Form No. 4 made the assessment for the relevant year conclusive and final under the Scheme. Upon being notified of issuance of Form No. 2 and the pending settlement application, the appellate authority ought not to have remanded the assessment; it should have deferred disposal until the final settlement certificate and then disposed of the appeal consistently with the settlement. Continuation of the remand and consequential proceedings produced unwarranted multiplicity of litigation.

Conclusion: The settlement certificate in Form No. 4 remains conclusive under the Scheme, and the appellate, Tribunal and consequential proceedings founded on the remand order cannot survive.

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