TaxTMI 
TaxTMI 
2025 (7) TMI 608
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....he prescribed form 5 of the Direct Tax Vivad se Vishwas Act 2020 Act, petitioner further prays for holding that Respondent No.2 has no right to reopen a proceeding duly set at rest long back on 5.11.21, by the order of competent authority in the 1st round of litigation. III. That, Respondents may further be directed to refund Rs.4,81,087/- excess amount of disputed tax, ordered to be refunded in 1st round of litigation, with statutory interest, to be calculated from the date of issuance of certificate in Form 5 of the Direct Tax Vivad se Vishwas Act 2020, dt.5.11.21 to the day of its final disbursement in favour of petitioner. IV. That, be further held that the order contained in Form 5 of the Direct Tax Vivad se Vishwas Act 2020 has already attended finality, and as such, respondents have no other option rather to accept the order passed in 1st round of litigation under the said Act. V. That, for any other relief(s) for which petitioner is found entitled on the facts of this case and also in the eye of law. Brief Facts of the Case 3. From the narrations present in the writ application, it appears that at one point of time, pursuant to seizure of ca....
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....onceding the tax position and it shall not be lawful for the income-tax authority or the declarant being a party in appeal or writ petition or special leave petition to contend that the declarant or the income-tax authority, as the case may be, has acquiesced in the decision on the disputed issue by settling the dispute." 5. On facts, it is an admitted position that the petitioner applied before the designated authority under the Act of 2020 and the designated authority concluded the proceeding as also issued a certificate in Form-5. A copy of the certificate in Form-5 issued on 05 November, 2021 has been brought on record as Annexure- 'P-1' to the writ application. 6. Admittedly, the petitioner paid the entire amount but the grievance of the petitioner is that since the petitioner was entitled for a refund and the Department was not refunding the excess amount of tax paid by the petitioner, the petitioner was pursuing his claim before the competent authority. In this connection, the e-mail receipts and the petitions sent by the present petitioner to the authorities of the Department have been enclosed with the writ petition as Annexure 'P-2'. 7. At this stage, the petitio....
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.... towards Section 154 of the Act of 1961, particularly clause (a) of sub-section (1) of Section 154, which clearly indicates the scope and ambit of the exercise of power by the Assessing Officer under this provision. It is submitted that rectification of mistake as envisaged under clause (a) of subsection (1) of Section 154 is limited to amending any order passed by the Assessing Officer under the provisions of the Act of 1961. By no stretch of imagination, the scope of this provision may be extended to amend an order/declaration issued by the designated authority under the Act of 2020. 11. Learned counsel has relied upon a Division Bench judgment of the Hon'ble Delhi High Court in the case of SAN Garments Manufacturing Private Limited Vs. Pr. Commissioner of Income Tax 7 and Another reported in 2024 SCC OnLine Del 9066. It is submitted that in the said case, in terms of Section 5 of the Act of 2020, the designated authority issued a certificate in Form No.3 dated 16.10.2020 determining the balance amount payable as Rs.69,56,571/-. Thereafter, the designated authority issued a certificate in Form No. 5 in terms of Rule 7 of the Rules of 2020 under Section 5(2) read with Section 6....
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....n of this Court has been drawn towards Question No. 46 of the FAQs. It is submitted that the Circular empowers the Departmental authority to rectify apparent mistake in the order under Section 5 of the Act of 2020. It is her submission that the order passed by the revisional authority under Section 264 of the Act of 1961 is in accordance with law and needs no interference. Consideration 17. We have heard learned counsel for the petitioner and learned Senior Standing Counsel for the Department. The facts are admitted to the effect that there was an assessment under Section 143(3) read with Section 153-B of the Act of 1961 in which the assessment order dated 19.12.2018 was passed. The petitioner was assessed at Rs.18,08,450 (excluding agriculture income for rate purpose of Rs.175590/-) against his returned income of Rs.2,88,577/-. A demand of Rs.5,88,457/- was raised against the petitioner for which a notice under Section 156 dated 19.12.2018 was served upon the petitioner. 18. It is further admitted that the petitioner challenged the assessment and approached the Appellate Forum but during pendency of the appeal, the Act of 2020 came into force. The petitioner applied under....
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.... (1) of section 206CB. Inserted by Act 31 of 1964, S. 7 (w.e.f. 6-10-1964). [(1-A) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.] (2)Subject to the other provisions of this section, the authority concerned- (a)may make an amendment under sub-section (1) of its own motion, and (b)shall make such amendment for rectifying any such mistake which has been brought to its notice Substituted by Act 23 of 2012, S. 70, for certain words (w.e.f. 1-7-2012). [by the assessee, or by the deductor,] Inserted by Act 20 of 2015, S. 38 (w.e.f 1-6-2015). [or by the collector] and where the authority concerned is the Certain words omitted by Act 21 of 1998, S. 65 (w.e.f. 1-10-1998). [* * *] Substituted by Act 8 of 2023, S. 76, for certain words (w.e.f. 1-4-2023). [the Joint Commissioner (Appeals) or the Commiss....
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....ch the order sought to be amended was passed]. Inserted by Act 14 of 2001, S. 65 (w.e.f. 1-6-2001). [(8) Without prejudice to the provisions of sub-section (7), where an application for amendment under this section is made Substituted by Act 23 of 2012, S. 70, for certain words (w.e.f. 1-7-2012). [by the assessee or by the deductor] Inserted by Act 20 of 2015, S. 38 (w.e.f. 1-6-2015) [or by the collector] on or after the 1st day of June, 2001 to an income-tax authority referred to in subsection (1), the authority shall pass an order, within a period of six months from the end of the month in which the application is received by it,- (a)making the amendment; or (b)refusing to allow the claim.]" 21. We would also take note of the relevant provisions such as Sections 4, 5 and 6 of the Act of 2020 as under:- "4. Filing of declaration and particulars to be furnished.-(1) The declaration referred to in section 3 shall be filed by the declarant before the designated authority in such form and verified in such manner as may be prescribed. (2) Upon the filing the declaration, any appeal pending before the Income Tax Appellate Tribunal....
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....ms which were withdrawn under section 4 and all the consequences under the Income-tax Act against the declarant shall be deemed to have been revived. (7) No appellate forum or arbitrator, conciliator or mediator shall proceed to decide any issue relating to the tax arrear mentioned in the declaration in respect of which an order has been made under sub-section (1) of section 5 by the designated authority or the payment of sum determined under that section. 5. Time and manner of payment.-(1) The designated authority shall, within a period of fifteen days from the date of receipt of the declaration, by order, determine the amount payable by the declarant in accordance with the provisions of this Act and grant a certificate to the declarant containing particulars of the tax arrear and the amount payable after such determination, in such form as may be prescribed. (2) The declarant shall pay the amount determined under sub-section (1) within fifteen days of the date of receipt of the certificate and intimate the details of such payment to the designated authority in the prescribed form and thereupon the designated authority shall pass an order stating that th....
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....ned Senior Standing Counsel on this point, however, we are afraid that such contention cannot be accepted by this Court. The scope and ambit of Section 154 of the Act of 1961 cannot be extended by virtue of an answer to a FAQ which has been contained in a circular issued by the Central Board of Direct Taxes. The provisions of the Act of 2020 and that of the Act of 1961 are to be construed by this Court keeping in view the legislative intendment and the scope of the provisions contained therein. 25. We are of the considered opinion that an order of assessment which was passed as back as on 19.12.2018 could not have been reopened by the Assessing Officer by registering a proceeding under Section 154 on 22.12.2022, when the Department was a party before the designated authority under the Act of 2020 and in its' presence, the designated authority considered the matter and issued the certificate of closure of proceeding on 05.11.2021. 26. The scope of Section 154 which talks of rectification of mistake is limited to amend any order passed by the Assessing Officer under the provisions of the Act of 1961 but in no way in the garb of exercise of its power under clause (a) of sub-sect....