TaxTMI 
TaxTMI 
2025 (6) TMI 826
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....cations/declarations filed for settling the dispute under the provisions of the Direct Tax Vivad Se Vishwas Act, 2020. 3. In the respective cases, the applications/declarations filed under the aforesaid Act which have been rejected on the ground that the respective petitioners were not eligible for the amnesty under the Direct Tax Vivad Se Vishwas Act, 2020 as the disputed demand was more than Rs. 5,00,00,000/-. 4. Both the First Writ Petitioners in the respective Writ Petitions have suffered Assessment Orders dated 28.04.2017 and 27.04.2017 for the Assessment Year 2016-2017 passed under Section 143(3) of the Income Tax Act, 1961. The tax that was determined under the Assessment Orders passed under Section 143(3) of the Income Tax Act, 1961 including the interest has also been paid by the respective First Writ Petitioners. 5. These Assessment Orders were in the background of a search that was conducted under Section 132 of the Income Tax Act, 1961 in the case of the respective Writ Petitioners on 24.09.2015. 6. Insofar as the First Writ Petitioner in W.P.No.7178 of 2022 is concerned, during the course of the search, a non-disclosure of undisclosed income of Rs. 120,00,0....
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.... 9(a)(i) of the Direct Tax Vivad Se Vishwas Act, 2020 on the ground that the amount of disputed demand exceeded Rs. 5,00,00,000/-. In the Impugned Rejection Order, it has been stated that the respective Writ Petitioners were not eligible for amnesty under the Scheme as the disputed demand is more than Rs. 5,00,00,000/-. 15. Learned Senior Counsel for the Petitioners would submit that Section 9(a)(i) of the Direct Tax Vivad Se Vishwas Act, 2020 cannot be pressed against the respective Writ Petitioners as there is no disputed tax which was sought to be settled under the provisions of the Direct Tax Vivad Se Vishwas Act, 2020. 16. It is submitted that restrictions under Section 9(a)(i) of the Direct Tax Vivad Se Vishwas Act, 2020 relates to "tax arrears" as defined in Section 2(1)(o) of the said Direct Tax Vivad Se Vishwas Act, 2020. It is submitted that Section 2(1)(o) of the Direct Tax Vivad Se Vishwas Act, 2020 contemplates 4 different categories as determined under the provisions of the Income Tax Act, 1961. 17. It is further submitted that "disputed penalty" was one of the category in Section 2(1)(o)(iii) of the said Direct Tax Vivad Se Vishwas Act, 2020 and therefore th....
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....xmann.com 394 (Madras). 19. It is further submitted that even if there was ambiguity insofar as the interpretation of Section 9(a)(i) of the said Direct Tax Vivad Se Vishwas Act, 2020, the benefit of amnesty under it has to be extended to the respective Writ Petitioners. 20. Learned Senior Counsel for the Petitioners specifically drew attention to the Finance Minister's Speech which mentions about the proposed Direct Tax Vivad Se Vishwas Act, 2020 at the stage of presentation of the Bill in the Parliament. 21. That apart, the learned Senior Counsel for the Petitioners would submit that the Courts have interpreted that the Beneficial Scheme should not be denied. 22. Learned Senior Counsel for the Petitioners would also submits that in the Counter Affidavit filed by the First Respondent, there is no clear defence except to reiterate that the amount of disputed demand exceeded Rs. 5,00,00,000/- and therefore, the respective Writ Petitioners were not entitled to the benefit of the Scheme. 23. Defending the Impugned Rejection Orders, rejecting the applications, the learned Senior Standing Counsel for the Respondents would submit that the decisions cited by the learned....
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....Vivad Se Vishwas' scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty provided he pays by 31st March, 2020. Those who avail this scheme after 31st March, 2020 will have to pay some additional amount. The scheme will remain open till 30th June, 2020. Taxpayers in whose cases appeals are pending at any level can benefit from this scheme. I hope that taxpayers will make use of this opportunity to get relief from vexatious litigation process." 29. The statistic that is available in the electronic and print media reveal that as on 30.11.2019, 4.83 lakhs direct tax disputes were pending at various Courts and Appellate Forums like CIT(A), ITAT, High Court and Supreme Court involving a whopping amount Rs. 9.32 lakhs crores as tax arrears. The direct tax collection during the Financial Year 2018-2019 was pegged at Rs. 11.37 lakhs Crores. Disputed tax arrears in these forum constituted nearly one year direct tax collection during the Financial Year 2018-2019. This is also evident from the statement of object and reasons of the said Act. The statement of object and reason for e....
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....le shall be increased by 10 percent of disputed tax; (d) in appeals related to disputed penalty, disputed interest or disputed fee, the amount payable by the declarant shall be 25 percent of the disputed penalty, disputed interest or disputed fee, as the case may be, if the payment is made on or before the 31st day of March, 2020. If payment is made after the 31st day of March, 2020 but on or before the date notified by Central Government, the amount payable shall be increased to 30 percent of the disputed penalty, disputed interest or disputed fee, as the case may be. 4. The proposed Bill shall come into force on the date it receives the assent of the President and declaration may be made thereafter upto the date to be notified by the Government. President's Recommendation under Article 117 of the Constitution of India [Letter No.IT(A)/1/2020-TPL, dated 1.2.2020 from Smt.Nirmala Sitharaman, Minister of Finance and Corporate Affairs to the Secretary General, Lok Sabha] The President, having been informed of the subject matter of the Direct Tax Vivad Se Vishwas Bill, 2020, recommeds under clause (1) and (3) of Article 117 rea....
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....ved the assent of the Hon'ble President of India and has now been enacted as The Direct Tax Vivad Se Vishwas Act, 2020 (Vivad se Vishwas). The objective of Vivad se Vishwas is to inter alia reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process. 4. 55 questions contained in circular no 7 of 2020 are reissued under this circular with following modifications i. Vivad se Vishwas referred to Direct Tax Vivad se Vishwas Bill, 2020 in circular no 7. Howcver, in this circular it refers to The Direct Tax Vivad Se Vishwas Act, 2020; ii. Since clauses of the Bill have now become sections in the Vivad Se Vishwas, the reference to "clause" in circular no 7 has been replaced with "section"; iii. Reference to declaration form in circular no 7 has been replaced with referencing of relevant form, since rules and forms have now been notified; and iv. Answer to question no 22 has been modified to reflect the correct intent of the law. It ....
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....the Act on the basis of search initiated under Section 132 or Section 132A of the Act are excluded if the amount of disputed tax exceeds five crore rupees in that assessment year. Thus, if there are 7 assessments of an assessee relating to search and seizure, out of which in 4 assessments, disputed tax is five crore rupees or less in each year and in remaining 3 assessments, disputed tax is more than five crore rupees in each year, declaration can be filed for 4 assessments where disputed tax is five crore rupees or less in each year. Case where the tax arrears relate to an assessment made under Section 143(3) or Section 144 or Section 153A or Section 153C of the Act on the basis of search initiated under Section 132 or Section 132A of the Act are excluded if the amount of disputed tax exceeds five crore rupees in that assessment year. Thus, if there are 7 assessments of an assessee relating to search and seizure, out of which in 4 assessments, disputed tax is five crore rupees or less in each year and in remaining 3 assessments, disputed tax is more than five crore rupees in each year, declaration can be filed for 4 assessments where disputed tax is five crore rupees or l....
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....ble under this Act on or after 1st day of April, 2020 but on or before the last date (c) Where the tax arrear relates to disputed interest or disputed penalty or disputed fee. Twenty-five percent of disputed interest or disputed penalty or disputed fee. Thirty percent of disputed interest or disputed penalty or disputed fee. 40. The expression used in the Direct Tax Vivad Se Vishwas Act, 2020 is "disputed tax" and "tax arrears". These 2 expressions have been defined in Section 2(1)(j) and Section 2(1)(o) of the Direct Tax Vivad Se Vishwas Act, 2020. They read as under:- 2(1)(j) 2(1)(o) 2.(1) In this Act, unless the context otherwise requires,- (a)..... (b)..... (c)..... (d)..... (e)..... (f)..... (g)..... (h)..... (i)..... (j) "disputed tax", in relation to an assessment year or financial year, as the case may be, means the income tax including surcharge and cess (hereafter in this clause referred to as the amount of tax) payable by the appellant under the provisions of the Income tax Act, 1961, as computed hereunder:- A) In a case where any appeal, writ petition or special leave petition is pending before the....
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....sputed tax, or to carry forward the reduced tax credit or loss or depreciation, in such manner as may be prescribed. (a) ..... (b) ..... (c) ..... (d) ..... (e) ..... (f) ..... (g) ..... (h) ..... (i) ..... (j) ..... (k) ..... (l) ..... (m)..... (n) ..... (o) "tax arrear" means,- i. the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax, and penalty leviable or levied on such disputed tax; or ii. disputed interest; or iii. disputed penalty; or iv. disputed fee, as determined under the provisions of the Income-tax Act. 41. There is however exception to Section 3 and Section 4 of the said Act in Section 9(a)(i) of the said Act. As per Section 9(a)(i) of the said Act, the provisions of the Act shall not apply in respect of "tax arrears" relating to an Assessment Year in respect of which an assessment has been made under subsection (3) of Section 143 or Section 144 or Section 153A or Section 153C of the Income Tax Act, 1961 on the basis of a search initiated under Section 132 or Section 132A of the Income Tax Act, 1961, if the amount of the "disputed tax" exceeds Rs....