2022 (8) TMI 1362

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....s framed by Asst. Commissioner of Income Tax, Corporate Circle-6(2), Chennai for the relevant Assessment Year 2017-18 vide order dated 07.12.2019 u/s. 143(3) of the Act. 2. The only issue in this appeal of assessee is against the revision order passed by PCIT u/s. 263 of the Act on the issue already resolved and closed by an order for full and final settlement under Direct Tax Vivad Se Vishwas Scheme, 2020 in Form No.5 issued by the Revenue Department vide order dated 23.04.2021. For this, the assessee has raised following four grounds: "1. The learned PCIT has failed to consider the fact that the issue under consideration had already been resolved and closed by an order for full and final settlement under the Direct Tax Vivad S....

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....of the Income Tax Rules, 1962 (hereinafter 'the Rules') and made disallowance at Rs. 4,51,181/-. Subsequently, the PCIT issued show case notice and set aside the assessment order by directing the A.O to re-compute the disallowance under Rule 8D of the Rules correctly. The PCIT observed in Para 5 & 6, which reads as under: "5. The submissions filed by the assessee company are carefully considered. It is seen that the Assessee had made declaration under DTVSS Act 2020 in respect of the additions made in the Assessment Order dated 07-02-2019. The protection given under the DTVSS Act is applicable only for the issues for which the assessee or the department filled^ appeal with the appellate authorities. It will not apply for the other ....

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....ct Tax Vivad Se Vishwas Act, 2020, makes it very clear that once there is a compliance with the timeliness specified under Section (5), the designated authority shall not institute any proceedings in respect of an offence or aims or levy any penalty or charge any interest under the Income Tax in respect of the tax arrears. 44. Section 5 of the Direct Tax Vivad Se Vishwas Act, 2020, also makes it clear that save as otherwise expressly provided in sub-section(3) of Section 5 or Section 6, noting contained in this Act shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in relation to which the declaration has been made. 45. The intention of the parliament e....

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....le Culcatta High Court in the case of PCIT v. Manju Osatwal [2022] 139 taxmann.com 376 (Calcutta) in great detail has considered this issue and finally held in para 17 & 18 as under: "17. After going through the provisions of the scheme, this Court finds that Chapter IX of the Finance Act, 2016 is a complete code by itself. It provides an opportunity to an assessee to offer income, which was not disclosed earlier, to tax. Chapter IX provides for a special procedure for disclosure and charging income to tax. It lays down the procedure for disclosure of such income; the rate of income tax and the penalty to be levied thereupon and the manner of making such payment. Under the said scheme the competent authority has been vested with th....