Smt Sharen Nitin Naik Vs PCIT (Bombay High Court)
In Smt Sharen Nitin Naik Vs PCIT, the Bombay High Court examined the rejection of the petitioner’s application under the Direct Tax Vivad Se Vishwas Scheme, 2020 (the Scheme). The petitioner challenged the order dated 17.03.2021 rejecting her Forms 1 and 2 on the ground that she had not filed an appeal against the assessment order and, therefore, had no pending appeal.
The petitioner contended that the order was passed without granting a hearing, contained no reasons, and was contrary to the object of the Scheme. She submitted that although she had not filed an appeal against the assessment order in her individual capacity, she had filed an appeal against the penalty order under Section 271(1)(c), which was pending. She further relied on Section 5A of the Income Tax Act, 1961, applicable to spouses governed by the Portuguese Civil Code, under which income is apportioned between spouses.
The factual background showed that both the petitioner and her husband were assessed under Section 143(3) read with Section 147 following a survey. A penalty order was also passed against both. The husband filed appeals against both the assessment and penalty orders and later applied under the Scheme. His application was accepted, and Forms 3 and 5 were issued. The petitioner also filed Forms 1 and 2 under the Scheme, but her application was rejected solely because she had not filed an appeal against the assessment order.
