Future Plus Enterprise Vs PCIT (Madras High Court)
Madras High Court held that Direct Tax Vivad Se Vishwas Scheme benefit is not admissible in case of assessments relating to search and seizure when the disputed tax exceeds INR 5 Crore. Therefore, writ petitions are dismissed.
Facts- In these Writ Petitions, the respective petitioners have challenged the Impugned Communication/Impugned Rejection Order dated 26.09.2021 rejecting the applications/declarations filed for settling the dispute under the provisions of the Direct Tax Vivad Se Vishwas Act, 2020.
Conclusion- As per Section 9(a)(i) of the said Act, the provisions of the Act shall not apply in respect of “tax arrears” relating to an Assessment Year in respect of which an assessment has been made under subsection (3) of Section 143 or Section 144 or Section 153A or Section 153C of the Income Tax Act, 1961 on the basis of a search initiated u/s. 132 or Section 132A of the Income Tax Act, 1961, if the amount of the “disputed tax” exceeds 5,00,00,000/-.
Held that the respective Writ Petitioners were assessed under section 153A/C read with Section 143(3) of the Income Tax Act, 1961 pursuant to search that was conducted under Section 132 of the Income Tax Act, 1961 on 24.09.2015. Admittedly, the “disputed tax” in the Assessment Orders dated 28.04.2017 and 27.04.2017 respectively in the case of the respective Writ Petitioners exceeded Rs.5,00,00,000/-. Therefore, these Writ Petitions are liable to be dismissed.
