Rose Wood Buildwell Private Limited Vs PCIT-7 & Ors. (Delhi High Court)
Delhi High Court held that assessee is entitled to confine the settlement of disputes which were subject matter of its appeal filed before appellate authority under Direct Tax Vivad Se Vishwas Act, 2020 [DTVSV Act].
Facts- The petitioner has filed the present petition, inter alia, impugning the certificate issued by respondent no. 3 (Commissioner of Income Tax) under Sub-section (1) of Section 5 of the Direct Tax Vivad Se Vishwas Act, 2020 (DTVSV Act) whereby the declaration as furnished by the petitioner u/s. 3 of the DTVSV Act was modified to include settlement of certain disputes that were not the subject matter of the declaration made by the Assessee.
According to the Revenue, the Assessee was required to settle all disputes pertaining to an assessment year and could not confine the settlement of disputes to only some issues that had arisen in the assessment year, while leaving the others. Thus, the principal question that falls for consideration of this court is whether the Assessee is entitled to confine the settlement of the disputes.
Conclusion- Clarification vide CBDT circular dated 22.04.2020 underscores the principle that the unit of settlement is an appeal and includes a prospective appeal.
