TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 231
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.... respondent - Department. Since a short question of law is raised in the writ petitions, the same are heard extensively and are finally decided today by this judgment and order. 2. The issue which calls for deliberation before this Court is in a narrow compass i.e. applicability of Section 96 of the Direct Tax Vivad Se Vishwas Scheme, 2024 promulgated vide Notification dated 19.09.2024 in exercise of powers conferred under sub-section (2) of Section 88 of the Finance (No. 2), Act 2024 issued by the Ministry of Finance read with the Circular No. 12 of 2024 dated 15.10.2024 and Circular No. 19 of 2024 dated 16.12.2024 in cases of the petitioners who are subjected to reassessment under section 147/148 of the Income Tax Act, 1961 (for short "the Act") on the basis of incriminating material found during search under section 132/132A of the Act. 3. Special Civil Application No. 3627 of 2025 is taken up as the lead matter and therefore the facts are borrowed from it. In the instant writ petition, the petitioner is a Partnership Firm inter alia engaged in the business of development of Industrial Park in Karvad road. The petitioner filed its original return of income for Assessment Y....
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.... 144 or Section 147 or Section 153A or Section 153C of the Act on the basis of the search initiated under Section 132 or Section 132A of the Act. In the present case, the petitioner has opted the DTVSV Scheme and filled Form No. 1 on 20.12.2024. However, the application under the DTVSV Scheme was rejected on 17.01.2025 on the ground that since the order under Section 147 of the Act was passed based on the information obtained during the search action conducted in case of Jignesh Shah and Sanjay Shah, the DTVSV Scheme is not applicable. 3.4. Aggrieved by the same, the petitioner also sent a communication dated 21.01.2025 requesting to reconsider the Form 1 as per circular dated 16.12.2024. However, in the present case the search action was conducted in the case of third party before 01.04.2021, but the assessment in the case of petitioner was completed under Section 147 of the Act, and therefore, the petitioner is entitled to opt for DTVSV Scheme. 4. The learned advocates appearing for the petitioners submitted that since no date of search is mentioned under the provision of Section 96 of the DTVSV Scheme, the search undertaken in cases of present petitioners prior to 01.04.20....
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....respective parties have primarily placed reliance on the clarification issued by the Government of India through two Circulars clarifying the DTVSV Scheme. Reliance is placed on Item No. 6 (clarification No. 6) of Circular dated 15.10.2024 and Item No. 40 (clarification no. 40) of Circular dated 16.12.2024. The case of the petitioner is that the assessment orders passed in their case are under Section 148 of the Act and hence their cases neither falls under Sections 153A, 153C or 143(3) of the Act and as such, the benefits of DTVSV Scheme has to be extended to them. 8. As against this, it is the case of the Revenue that the reassessment proceedings emanate from the incriminating materials found during the search action under Section 132 of the Act, hence, in view of the specific provision of Section 96A(1) of the Finance Act, 2024 (DTVSV Scheme) none of the petitioners are eligible for having the benefit of DTVSV Scheme. At this stage, we may refer to the relevant provision of Section 96 of the Finance Act, 2024 (DTVSV Scheme):- "96. The provisions of this Scheme shall not apply : (a) in respect of tax arrear.- (i) relating to an assessment year in res....
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....he Principal Commissioner or Commissioner, that any money, bullion, jewellery or other valuable article or thing, seized or requisitioned under Section 132 or Section 132A in case of any other person on or after the 1st day of April, 2021, belongs to the assessee and assessments have been made consequently, or (iii) Where the Assessing Officer has drawn satisfaction, with the prior approval of Principal Commissioner or Commissioner, that any books of account or documents, seized or requisitioned under Section 132 or Section 132A, in case of any other person on or after the 1st day of April, 2021, pertains to, or any information contained therein, relate to, the assessee and assessments have been made consequently." 10. We may first deal with the clarifications as mentioned in Item no. 6 of the circular dated 15.10.2024. A bare perusal of the clarification issued at Item no. 6 will elucidate that the question posed is about the kind/type of assessments which are to be considered having been made on the basis of the search initiated under Section 132/132A of the Act. Thus, the categories of the assessment emanating from the search under Sections 132/132A of the Act are so....
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....benefit of DTVSV Scheme. In case, if we accept the submission, the same would run contrary to the provision of Section 96 of the DTVSV Scheme. As mentioned herein above, the legislature has clarified its affirmative intention of debarring those assessees from the Scheme in whose case the 'tax arrears' relating to an assessment year in respect of which an assessment has been made under the Sections stem out from the search proceedings initiated under Section 132/132A of the Act. Merely, because there is no reference to provisions of section 147/148 of the Act in the question at Item no.40, the same will not ipso facto lead to a conclusion, that the assessment under section 147/148 of the Act, which is passed exclusively by analyzing the incriminating material found during the search, will deem to have been excluded. If the intention of the legislature was to exclude, then the same would have found place under section 96 or any other provisions of DTVSV Scheme. 13. Unquestionably, in the case of all the petitioners the re-assessment emanates from the incriminating materials found during search proceedings, and the reassessment order is passed under section 147 of the Act with resp....