S A N Garments Manufacturing Private Limited Vs PCIT 7 And Anr. (Delhi High Court)
Delhi High Court held that no provision under the Direct Tax Vivad Se Vishwas Act, 2020 [DTVSV Act] empowers Designated Authority to reopen concluded assessment after issuance of final certificate u/s. 5(1) of the DTVSV Act.
Facts- The petitioner has filed the present petition, inter alia, impugning Form No.3 dated 29.01.2021 issued by respondent no.1 (Principal Commissioner of Income Tax-7). The petitioner had filed the return of its income for the Assessment Year (AY) 2012-13, declaring an income of ₹13,57,73,250/-. The said return was accepted. However, by a notice dated 29.03.2019, issued u/s. 148 of the Income Tax Act, 1961, the said assessment was sought to be reopened u/s. 147 of the Act.
AO passed an assessment order u/s. 147 read with Section 143(3) of the Act determining the petitioner’s income for the AY 2012-13 at ₹16,73,57,840/- after making an addition of ₹3,07,39,590/- as undisclosed expenditure u/s. 69C of the Act. Aggrieved by the said reassessment order dated 17.12.2019, the petitioner preferred an appeal before CIT(A).
While the said appeal was pending, the Parliament enacted the Direct Tax Vivad Se Vishwas Act, 2020 (DTVSV Act). The petitioner qualified as an ‘appellant’ u/s. 2(1)(a) of the DTVSV Act and accordingly, made a declaration u/s. 4(1) of the DTVSV Act seeking to settle the ‘tax arrear’.
