TaxTMI 
TaxTMI 
2024 (11) TMI 1107
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....succeeded before the Commissioner of Income Tax (Appeals) ["CIT(A)"]. The Income Tax Appellate Tribunal ["ITAT"] vide judgment dated 16.10.2017 upheld the order of CIT(A). 3. The order of the Tribunal was upheld by this Court vide judgment rendered on 26.02.2018. However, the Special Leave Petition against the High Court order was allowed by the Supreme Court vide order dated 05.03.2019. The application preferred by the petitioner for recall of the said order was also rejected by the Supreme Court vide order dated 25.10.2019. 4. It is thereafter that petitioner-assessee preferred a review petition. The review petition was filed on 18.11.2019, which was dismissed in limine on 04.02.2020 i.e. after the specified date, which is 31.01.2020. 5. The DTVSV Act was notified by the Government of India on 18.03.2020. Consequently, on 26.12.2020, petitioner, in order to avail the amnesty scheme of the Government of India, filed a declaration/application under the DTVSV Act on the e-portal of respondent No. 1, but his application was rejected by respondent No. 1. 6. Petitioner filed a revised declaration/application under the DTVSV Act on 28.01.2021, but the same was also rejected vide the....
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....n 2(1)(a) and Section 2(1)(j), the petitioner is not an appellant under the DTVSV Act and therefore not eligible for seeking the benefit of the same. It is also submitted that a review petition is not an appeal, inasmuch as, the scope of review is different from that of an appeal. It is thus argued that the writ petition is devoid of merits and is liable to be dismissed. 10. Before adverting to the respective contentions urged by the learned counsel, it is necessary to note the intent and purpose for which the Act of 2020 was enacted by the Parliament. The Statement of Objects and Reasons appended to the Act of 2020 would throw light on this aspect, which reads as under : - "Over the years, the pendency of appeals filed by taxpayers as well as Government has increased due to the fact that the number of appeals that are filed is much higher than the number of appeals that are disposed. As a result, a huge amount of disputed tax arrears is locked-up in these appeals. As on the 30th November, 2019, the amount of disputed direct tax arrears is Rs. 9.32 lakh crores. Considering that the actual direct tax collection in the financial year 2018-19 was Rs. 11.37 lakh crores, the disputed....
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.... the President and declaration may be made thereafter up to the date to be notified by the Government." 11. A plain reading of Statement of Objects and Reasons clearly indicates that intent and purport behind the introduction of DTVSV Act was to reduce the tax disputes pertaining to Direct Taxes. While taking note of the Statement of Objects and Reasons, we had in the case of M/s. Fresh Pet Private Limited v. Principal Commissioner of Income Tax, Delhi-1, 2024 SCC Online Del 6521, observed as under:- "17. As is manifest from the above, the legislation had taken into consideration the enormous amount of time and resources which were getting consumed on account of tax disputes and thus clearly acting as a burden not only upon the Government but also the tax payers. It was noted that those disputes were also hindering the timely collection of revenue. The VSV Act thus came to be promulgated in order to address those concerns and to subserve the larger public interest of settling disputes and to free the Union from the burden of pursuing litigation. It thus sought to address and balance the interest of the assessee as well as the Revenue and formulated appropriate measures aimed at....
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....here Commissioner (Appeals) has issued notice of enhancement under Section 251 of the Income-tax Act on or before the specified date, the disputed tax shall be increased by the amount of tax pertaining to issues for which notice of enhancement has been issued: Provided further that in a case where the dispute in relation to an assessment year relates to reduction of tax credit under Section 115-JAA or Section 115-D of the Income-tax Act or any loss or depreciation computed thereunder, the appellant shall have an option either to include the amount of tax related to such tax credit or loss or depreciation in the amount of disputed tax, or to carry forward the reduced tax credit or loss or depreciation, in such manner as may be prescribed. [Explanation.-For the removal of doubts, it is hereby clarified that the expression ―disputed tax, in relation to an assessment year or financial year, as the case may be, shall not include and shall be deemed never to have been included any sum payable either by way of tax, penalty or interest pursuant to an order passed by the Settlement Commission under Chapter XIX-A of the Income Tax Act.]" 18. As is apparent from the aforesaid d....
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....assesses to declare their undisclosed income on fulfilling certain terms and conditions. There are also legislations which are directed to cure some mischief and bring into effect some type of reform by improving the system or by relaxing the rigour of the law or by ameliorating the condition of certain class of persons who according to present day notions may not have been treated fairly in the past. Such welfare, beneficent or social justice oriented legislation are also known as remedial statutes. 28. It is settled law that any ambiguity in a taxing statute enures to the benefit of the assessee, but any ambiguity in the amnesty act or exemption clause in an exemption notification has to be construed in favour of the Revenue and amnesty/exemption has to be given only to those assesses who demonstrate that they satisfy all the conditions precedent for availing the amnesty/exemption. (See: Commr. of Customs case[Commr. of Customs v. Dilip Kumar & Co., (2018) 9 SCC 1] ). 29. For determining whether the Dtvsv Act is a taxing statute or an amnesty act or a beneficial/remedial act, one has to examine what is the objective and intent behind enacting the statute. The relevant porti....
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.... were to imposed. The Dtvsv Act also benefits the society as it reduces litigation, acrimony, decongests the courts and relieves the system of unnecessary burden. Consequently, this Court is of the view that Dtvsv Act is neither a taxing statute nor an amnesty act. It is a remedial/beneficial statute." 23. It is the aforenoted principles which would thus govern the interpretation that is liable to be accorded to the VSV Act. When tested on the aforesaid precepts, we come to the firm conclusion that the respondents have not only taken an extremely narrow and pedantic view while refusing to accord relief to the petitioner, their action goes against the fundamental grain of the legislation itself. 24. The VSV Act enables an assessee to seek resolution of disputes pending at various stages of the appellate and review tiers created under the Act on the prescribed date. Those proceedings would undoubtedly be concerned with challenges which an assessee may have instituted to an original order of assessment and would be logically confined to parts which would have been adverse to it. Those appeals and challenges would necessarily be in respect of either adverse findings or decisions ....
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.... CBDT Circulars that pendency of arbitration proceedings and miscellaneous applications in certain cases, as on cutoff date would meet the requirement of Section 2(1)(j), even though no Appeal, Writ Petition or Special Leave Petition may be pending in any Appellate Forum in terms of Section 2(1)(j). 17. It is well settled law that Department is bound by the circulars/instructions and has to comply with the same. The Hon'ble Supreme Court has held in the case of Paper Products Ltd. vs. Commissioner of Central Excise (1999) 7 SCC 84 that circulars/instructions issued by CBE&C are binding on the departmental authorities. They cannot take contrary stand and department cannot repudiate a circular on the basis that it was inconsistent with the statutory provision. Thus, the respondent is bound by the circular of CBDT issuing clarification. 18. Even though, the scope of review is limited and statutorily different from an appeal, the jurisdiction of the Court extends to the power to modify, review or recall its own order and that being so, the SLP cannot be said to have attained finality since the review petition was still pending on the cutoff date. 19. Moreover, the department itself ....