TaxTMI 
TaxTMI 
2025 (7) TMI 1693
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....pondent No. 1 and learned Senior Standing Counsel Mr. Varun Patel for respondent No. 2. 2. Rule returnable forthwith. Learned Senior Standing Counsels for the respondents waive service of notice of rule on behalf of the respective respondents. 3. Having regard to the controversy involved which is in narrow compass, with the consent of the learned advocates for the parties, the matter is taken up for hearing. 4. This petition is preferred to challenge the order rejecting the application filed by the petitioner under section 91 of the Finance (No. 2) Act,2024 denying the benefit under the Direct Tax Vivad Se Vishwas Scheme, 2024 ['DTVSV Scheme' for short]. 5. The petitioner has also preferred Special Civil Application No. 6458/2022 challe....
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....ting the draft assessment order as final assessment order. 7.5 However, the respondent No. 1-Designated Authority, however, rejected the declaration filed by the petitioner by making the following remarks on 13.02.2025: "not eligible in DTVSV,2024 as the matter is pending with Hon'ble High Court. The case not eligible for scheme VSVS 2024." Being aggrieved, the petitioner has preferred this petition. 8. Learned advocate Mr. Manish Shah for the petitioner submitted that as per the Direct Tax Vivad Se Vishwas Scheme, 2024, the disputed tax is defined in clause (j) of section 89(1) of the Finance (No. 2) Act,2024. It was pointed out that as per sub-clause (A), "disputed tax" means in a case where the appeal, writ petition or special leave....
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....g Officer on 30.03.2022 determining the assessed income and therefore, the petitioner should be held eligible for DTVSV Scheme, 2024. 8.4 Learned advocate Mr. Shah submitted that section 91 of the Finance (No. 2) Act,2024 is for settling of the disputes pending between the assessee and the Department and the respondent-Assessing Officer could not have rejected the declaration filed by the petitioner because of the pendency of the writ petition before this Court. 8.5 It was submitted that as the petitioner is eligible for benefit of DTVSV Scheme, 2024, only in view of the pendency of the writ petition as provided in the definition of "appellant". Sub-clause (i)of clause (a) of section 89(1) of the Finance (No. 2) Act,2024 defines "appellan....
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....ed that passing of draft assessment order cannot be considered as determination of the tax payable by the petitioner/assessee. He invited attention to Question No. 26 in Circular No. 12/2024 dated 15.10.2024 issued by the CBDT in form of Frequently Asked Questions ['FAQs' for short] in connection with DTVSV Scheme to point out that in a case, where writ is filed against the notice issued under section 148 of the Act and no assessment order has been passed consequent to such notice, then such case would not be eligible for benefit under DTVSV Scheme as the income in such case is yet to be determined and disputed tax is not ascertainable. It was therefore, submitted that in the facts of the case, when no assessment order is passed determining....
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....ate;" 12. On perusal of the aforesaid definition, the case of the petitioner is covered as the writ petition filed by the petitioner was pending as on the specified date. Clause (j) contained in section 89(1) defines the 'disputed tax' which reads as under: "(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 Chapter referred to as the amount of tax) payable by the appellant under the provisions of the Income-tax Act, as computed hereunder:- (A) in a case where any appeal, writ petition or special leave petition is pending before the appellate forum as on the specified date, the amount of tax that is payable by the appellant if....
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....f the receipt by him of the draft order, (a) file his acceptance of the variations to the Assessing Officer; or (b) file his objections, if any, to such variation with, (i) the Dispute Resolution Panel; and (ii) the Assessing Officer. (3) The Assessing Officer shall complete the assessment on the basis of the draft order, if- (a) the assessee intimates to the Assessing Officer the acceptance of the variation; or (b) no objections are received within the period specified in sub-section (2)." 16. Section 144C(3)(b) provides that the Assessing Officer shall complete the assessment on the basis of the draft assessment order, if no objections are received within thirty days' time period as specified in sub-section (2). Therefore, ....