Madras High Court Directs early disposal of application under Vivad Se Vishwas Scheme

Madras High Court Directs early disposal of application under Vivad Se Vishwas Scheme

The Court provided the liberty to the Appellant to restore the appeal in the event the decision was not in favour of the Assessee

The Madras High Court directed the Respondent – Authorities to process the tax application at the earliest on the ground that the Assessee had already been issued with Form-3 under the Direct Tax Vivad Se Vishwas Act, 2020.

The matter titled M/s Fenner (India) Limited v The Addl. Commissioner of Income Tax was placed before the Division Bench of the High Court of Madras, comprising Justices T.S. Sivagnanam and Sathi Kumar Sukumara Kurup.

The Appellant – Assessee through the tax case appeal had challenged the order of the Income Tax Appellate Tribunal by raising substantial questions of law regarding the Appellant – Assessee's eligibility for deduction and exclusion u/s 80HHC of the Income Tax Act, 1961.

The Appellant – Assessee further informed that they had availed the benefit of Vivad Se Vishwas Scheme under the Direct Tax Vivad Se Vishwas Act, 2020 and Form-3 had already been issued to it on 13 January 2021.

The Court chose not to answer these substantial questions of law on account of the Direct Tax Vivad Se Vishwas Act, 2020 enacted by the Government of India, which provided for resolution of disputed tax and related matter. It was observed that no useful purpose would be served in keeping the appeal pending considering the fact that the Assessee had already availed the benefit under the Act.

However, the bench chose to safeguard the interest of the Assessee in the event the order to be passed by the Respondent – Authorities under the Act was not in favour of the Assessee.

The Court, therefore, disposed of the tax case appeal by directing the Respondent – Authorities to process the application and communicate the decision to the Appellant – Assessee at the earliest in accordance with the said Act. It also provided the liberty to the Appellant – Assessee to restore the appeal in the event the decision was not in favour of the Assessee.