Seema Tripathi Vs PCIT (Delhi High Court)
In the case of Seema Tripathi vs. PCIT-7 (Delhi High Court), the petitioner challenged the rejection of her application under the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024 by the Principal Commissioner of Income Tax (PCIT). The petitioner’s application, filed on 16.10.2024, aimed to resolve a dispute over interest charged under Sections 234A, 234B, and 234C of the Income Tax Act, 1961, but was rejected without any reasoning. The issue originated from a delay in the processing of a refund related to Advance Tax paid for Assessment Year 2014-15, which led to difficulties in paying the due tax for Assessment Year 2015-16, resulting in significant interest charges.
The petitioner had entered into a Share Purchase Agreement in 2013, expecting the transaction to be taxable in A.Y. 2014-15, and had deposited substantial advance tax. However, as the sale materialized only in April 2014, the tax liability was shifted to A.Y. 2015-16. Despite making repeated requests for the refund or adjustment of the advance tax, the refund was processed late, causing further issues with the petitioner’s ability to meet tax deadlines, leading to the imposition of interest penalties for delayed filings and payments. Following the rejection of her refund claims and failure to resolve the matter with the Assessing Officer (AO), the petitioner sought the waiver of interest under Section 119(2)(a), but her application was dismissed in 2017.
