2025 (12) TMI 476

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....i Rignesh Das, CIT. DR ORDER PER SANJAY GARG, JUDICIAL MEMBER: The present appeal has been preferred by the assessee against order passed by the Ld. Principal Commissioner of Income-Tax, PCIT, Ahmedabad-1 [hereinafter referred to as "Ld. PCIT"] dated 15.03.2022 under section 263 of the Income Tax Act, 1961 ("the Act" for short) pertaining to Assessment Year 2017-18. 2. The short issue ....

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.... finalizing thereof is nothing but closure of disputes in respect of tax arrears which cannot be subsequently reopened by issuing notice u/s.263 of the Act for revising assessment order. It is pertinent to mention here that Section 5(3) of the Direct Tax Vivad Se Vishwas Act, 2020 states as under: "(3) Every order passed under sub-section (1), determining the amount payable under this Act....

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....imeliness 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 8 of the Direct Tax Vivad Se Vishwas Act, 2020, also makes it clear that save as otherwise expressly provided in subsection(3) of section 5 or section ....

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....1 and 2 or not accepted with the issue of Form 3, the Impugned Notice seeking to re-open the assessment under section 263 of the Income-tax Act, 1961 could be justified." 10. In light of the facts and the decision of the Madras High Court, it was not open for the authorities to initiate proceedings under section 263 of the Act, especially when they were clearly so barred. We are also cons....