Case Law Details
Kapri International Pvt. Ltd. (In Liquidation) Through Liquidator Vs CIT (Delhi High Court)
Held that any proceeding challenging a decision by the department in respect of tax, interest, penalty, fee etc. would come within the purview of a ‘dispute’ which would enable a party to approach the department for a resolution under the Direct Tax Vivad Se Vishwas Act, 2020.
Facts- Prior to winding up order, the petitioner was assessed for Income Tax. Court directed the liquidator to release the outstanding amount of department and granted liberty to the liquidator to seek waiver of interest and penalty. However, the application of the assessee seeking waiver of interest was rejected by the Commissioner of Income Tax (CIT). against the said rejection, the assessee filed a company application before the Delhi High Court.
Thereafter, the assessee applied under the Direct Tax Vivad Se Vishwas Act, 2020 (VSV Act), for resolution of the disputed interest liability. The assessee filed the declarations and provided the details of the amount payable under the VSV Act against the disputed interest liability. However, the said declarations were rejected by the Principal Commissioner of Income Tax (PCIT). Against this, the assessee filed a writ petition before the Court.
Conclusion- There is no definition of ‘appeal’ in the VSV Act. The term ‘dispute’ as per clause (b) of rule 2 includes an appeal, writ, special leave petition, arbitration, conciliation and mediation.
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