N. Venu Gopal Reddy Vs Union of India and Others (Andhra Pradesh High Court)
Summary: The Andhra Pradesh High Court allowed the writ petition and set aside the demand notice dated 12.04.2023 and the order dated 15.09.2023 after holding that the petitioner had complied with the payment requirement under Section 5(2) of the Direct Tax Vivad se Vishwas Act, 2020. The petitioner, engaged in works contracts, was subjected to assessment following a search, resulting in a demand of Rs.29,60,420/- under an assessment order dated 28.03.2014 passed under Section 143(3) read with Section 254 of the Income Tax Act, 1961. After filing an appeal, the petitioner opted for settlement under the Direct Tax Vivad se Vishwas Scheme and filed Form-1 on 23.12.2020. An initial Form-3 required payment of Rs.25,96,438/- on or before 31.03.2021 or Rs.28,56,082/- thereafter.
The petitioner noticed computational discrepancies and sought rectification by letter dated 12.02.2021. The authorities subsequently acknowledged the mistake and issued a revised Form-3 on 29.10.2021, determining Rs.23,36,812/- as payable on or before 30.09.2021 or Rs.25,70,493/- thereafter. The petitioner paid the entire Rs.23,36,812/- on 30.10.2021, one day after the revised Form-3 was issued, and filed Form-4 on the same date. Nevertheless, the Department later issued a demand for Rs.6,23,708/- on the premise that payment made on 30.10.2021 did not comply with the deadline specified in revised Form-3 and also passed an order under Section 220(2)(A) charging interest for delayed payment.
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