Talha Agency Vs PCIT (ITAT Ahmedabad)
VSV Means Full Stop – Vivad Se Vishwas Closes All Doors- Once Settled, Always Settled: ITAT Quashes 263 Revision Post-Settlement
Assessee challenged PCIT’s order dated 15.03.2022 passed u/s 263. AO had already completed assessment & Assessee subsequently opted for settlement under the Direct Tax Vivad Se Vishwas Act, 2020 (VSV). Despite the dispute having been resolved under VSV, PCIT invoked revisionary jurisdiction u/s 263 on the very same issue.
Tribunal held that once a taxpayer opts for & finalises VSV settlement, all matters covered therein attain finality. Section 5(3) of VSV explicitly states that the order determining amount payable “shall be conclusive” & “no matter covered by such order shall be reopened in any other proceeding under the Income-tax Act”. Tribunal relied heavily on the binding Gujarat High Court judgment in PCIT Vs Mrs. Swatiben Biharilal Parekh (2023) 156 taxmann.com 267 (Guj.), which held that a completed VSV settlement bars reopening or revision u/s 263 on the same issue. The High Court emphasised that VSV aims to bring complete closure of disputes; therefore, revisional action is impermissible. Applying the ratio, Tribunal held that PCIT’s attempt to revise the assessment was illegal & without jurisdiction. The revision order was quashed in entirety. Appeal allowed.
