TaxTMI 
TaxTMI 
2026 (8) TMI 1665
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the refund of amount, which has been belatedly paid to the petitioner after a period of 1013 days. 3. Today, when the matters are taken up for hearing, learned advocate Mr. Prashant Meharchandani appearing for the petitioner has submitted that, during the pendency of these petitions, respondents have passed orders granting the interest on the refund amount in the respective writ petitions. However, the grievance of the petitioners would still survive, as the petitioners are entitled to interest from 01.08.2021 till 02.03.2024. 4. Learned advocate Mr. Meharchandani has invited the attention of this Court to Form-5 which has been issued on 24.05.2021. It is submitted that by the various orders passed by the respondents, during the pendency of the writ petition, the interest has been confined from 01.07.2022, i.e. the order passed by the respondent authority confirming the determination of the amount under the Certificate issued in Form-5, whereas, the petitioner is entitled to the interest from the date of issuance of Form-5 and not from the passing of the consequential order dated 17.06.2022 giving effect to Form-5 issued under the Direct Tax Vivad Se Vishwas Act, 2020 (for s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Standing Counsel Ms.Maithili D. Mehta, has placed reliance on the Circular No. 03 of 2021 dated 04.03.2021 issued by the CBDT. It is submitted that the CBDT has clarified that in cases where the designated authority passes an order under sub-section (1) of Section 5 of the VsV Act, 2020 and under sub-section (2) of Section 5 of VsV Act, 2020, the Assessing Officer shall pass consequential order under the Act. It is thus submitted that, pursuant to the aforesaid circular, the Designated Authority passed an order on 17.06.2022 and accordingly, by the subsequent orders, the Designated Authority has determined the amount of interest from 01.07.2022 to 07.02.2024 (i.e. the date on which the refund order has been issued). 8. At this stage, learned Senior Standing Counsel Mr. Karan Sanghani, while assisting learned advocate Ms. Gupta has submitted that Section 10 of VsV Act, 2020, empowers CBDT to issue directions or orders to the income tax authorities, and accordingly it has issued Circular dated 4th March 2021 directing the officers to pass consequential orders under the IT Act, 1961 after the determination order passed under Section 5(2) of the VsV Act, 2020. It is submitted that s....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....2026) - from start of month subsequent to alleged Order Giving Effect to Form 5 dt. 17.06.2022 was passed, till Refund Order Date [1 July 2022 till 07 February 2024] Interest Quantum (as per Respondent vide order dt 01.07.2026) 5 6542/2026 2010-11 BRDO00088E 24 May 2021 57,97,818 02 March 2024 944 days or 31 Months and One Day 8,99,694 610 days or 20 months 5,79,782 2 6494/2026 2012-13 1,66,37,742 25,81,813 16,63,774 4 6538/ 026 2010-11 BRDO0090G 46,74,060 7,25,312 4,67,406 3 6497/2026 2012-13 78,38,067 12,16,296 7,83,807 Total 3,49,47,687 54,23,115 34,94,769 13. Thus, the petitioner is claiming the amount of interest on the refund from 01.08.2021 till the actual date of refund, which was credited on 02.03.2024, whereas, the respondents have granted interest from 01.07.2022 to 07.02.2024. 14. We have perused the orders passed by the respondent authority under Section 154 of the IT Act, 1961. A perusal of the aforesaid orders reveal that while granting interest on delayed refunds under VsV Act, 2020, the Designated Authority has reli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....een referred before us. 21. We shall, first refer to the provision of sub-section (1) and sub-section (2) of Section 5 of the VsV Act, 2020, the same read thus: "5.(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 the declarant has paid the amount." 22. The provision of sub-section (2) of Section 5 of the VsV Act, 2020 refers the payment of the amount by the declarant determined under sub-section (1) within 15 days of the date of receipt of the Certificate and intimate the details of such payment to the Designated Authority in prescribed for....
X X X X Extracts X X X X
X X X X Extracts X X X X
....7. Before us, the Revenue has placed reliance on the Circular No. 03 of 2021 dated 04.03.2021 for denying interest from the date of issuance of Form-5. The relevant portion of the Circular No. 03 of 2021 dated 04.03.2021 is extracted as under: "3. Representations have been received from the field authorities that under the Income-tax Act, 1961 (hereinafter referred to as "the Act") there is no provision available to the Assessing Officer to give effect to the order passed by the DA under sub-section (1) of section 5 and under sub-section (2) of section 5 of the Vivad se Vishwas in the case of a declarant. Since orders passed by the DA have a consequential effect under the Act, it has been requested that suitable clarifications may be issued to enable the AO to pass consequential orders under the Act. 4. In view of the foregoing, and in exercise of the powers conferred on the Board under section 10 of Vivad se Vishwas, it is hereby clarified that where the DA has passed orders under sub-sections (1) and (2) of section 5 of Vivad se Vishwas, the Assessing Officer shall pass consequential order under the Act." 28. A plain and simple reading of the aforesaid paragr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssion, since the Assessing Officer, while passing the consequential order dated 17.06.2022 and order dated 01.07.2026 under Section 154 of the IT Act, 1961, has not placed reliance on the time limit prescribed under Section 153 of the IT Act, 1961, but has placed reliance on the decisions of this Court in the case of Sahil Total Infratech (P.) Ltd. (supra) and in the case of Samarpan Foundation (supra). 34. We are of the opinion that the timeline given in the provision of Section 153 of the IT Act, 1961 cannot be resorted to, for passing the consequential orders under VsV Act, 2020. The Circular No. 03 of 2021 dated 04.03.2021 also does not refer that the consequential orders are to be passed by resorting to the limitation provided under Section 153 of the IT Act, 1961. 35. Since neither the Circular nor the Central Action Plan refers to the provision of Section 153 of the IT Act, 1961, and this Court cannot impose the limitation prescribed under Section 153 of the IT Act, 1961 for passing the consequential order after issuance of FORM-5 as canvassed by the learned advocates appearing for the Revenue. 36. In our considered opinion, the Designated Authority, after issuance ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 39. Thus, we reject the submissions advanced by the Revenue for discrediting its Central Action Plan 2021-2022 issued by CBDT, wherein, the CBDT has clarified in Clause-9 with reference to the VsV cases. The VsV Act, 2020 is a special Act which has been promulgated giving benefit to the assessee and as the clarification issued by the CBDT for issuance of the consequential orders referred in the Clause-9 of the Central Action Plan under Chapter-VI for passing the orders latest by 31.07.2021 cannot be ignored. If that was the case, the Revenue, while issuing the Circular No. 03 of 2021 dated 04.03.2021 would have again clarified about passing of the consequential orders giving effect to Form-5 as per the limitation stipulated in Section 153 of the IT Act, 1961, but, in absence of any such further clarification, the clarification issued in Clause-9 of the Central Action Plan by the CBDT in Action Plan has to be accepted. No contrary decision of the CBDT has been pointed out before us nullifying the provision of Clause-9. Hence, the Revenue cannot disown the explanation referred in Clause-9 of the Central Action Plan, 2021-2022. In our opinion, since the provision of sub-section (2) ....