The court ruled that minor delays in tax payments under the Direct Tax Vivad se Vishwas Act should not preclude benefits intended by the legislation, emphasizing a liberal interpretation of beneficial statutes.

JUDGMENT :

Bhargav D. Karia, J.

1. Heard learned advocate Mr.Dhinal Shah for the petitioner and learned Senior Standing Counsel Mr.Karan Sanghani for learned advocate Mrs.Kalpana Raval for the respondent.

2. Learned advocate Mr.Dhinal Shah for the petitioner has tendered the draft amendment.

The same is allowed in terms of the draft. To be carried out forthwith.

3. By this petition under Articles 226 and 227 of the Constitution of India, the petitioner has prayed for the following reliefs :

“A. YOUR LORDSHIPS may be pleased to allow the present Petition;

B. YOUR LORDSHIPS may be pleased to issue a writ of certiorari or in the nature of Mandamus or any other appropriate writ directing the Respondent to issue Form 5 to the Respondent in accordance with Rule 7 of the Direct Tax Vivad se Vishwas Rules, 2020;

C. YOUR LORDSHIPS may be pleased to issue directions upon the Respondent to refund the amount of INR 2, 00, 634/- (INR Two Lakh Six Hundred Thirty Four Only) as the Petitioner had met with the major payment requirements prior to 30/09/2021;

D. YOUR LORDSHIPS may be pleased to pass any further or other orders as the Hon'ble Court may deem proper in the interest of justice and in the circumstances of the case.”

4. At the outset, learned advocate Mr.Dhinal Shah, under instructions, does not pray for prayer (C) in view of Section 7 of the Direct Tax Vivad se Vishvash Act, 2020.

5. Having regard to the controversy in narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for final hearing.

6. Rule, returnable forthwith. Learned Senior Standing Counsel Mr.Karan Sanghani waives service of notice of rule for and on behalf of the respondent.

7. Brief facts giving rise to this petition can be summarised as under :

7.1. The petitioner is a Private Limited Company and filed its return of income for Assessment Year 2012-2013 on 1st September, 2012 declaring total income at Rs.4,48,710/-.The return of income filed by the petitioner was processed under Section 143(1) of the Income Tax Act, 1961 (for short ‘the Act’).

7.2. The case of the petitioner was reopened under Section 147 and notice under Section 148 dated 27th March, 2019 was issued.

The Assessing Officer passed an order under Section 143(3) read with Section 147 of the Act on 03.12.2019 and by making an addition of Rs.65,00,000/- in the total income of the petitioner.

7.3. Being aggrieved, the petitioner preferrd an Appeal before the CIT (Appeals).

7.4. During the pendency of the Appeal, Direct Tax Vivad se Vishvas Act, 2020 (DTVSV Act) was came into effect from 17th March, 2020 with an objective to provide resolution of disputed tax and for the matters connected therewith or incidental thereto.

7.5. The petitioner to get the benefit of the waiver of interest and penalty, as per the provisions of the DTVSV Act preferred an Application in Form 1 on 10th August, 2020 through online portal. The petitioner also withdrew the Appeal pending before the CIT (Appeals) as a pre-condition to file the Form 1 under the DTVSV Act.

7.6. According to the petitioner, the amount payable under the provisions of the DTVSV Act was calculated at Rs.12,41,653/-.

7.7. The respondent issued Form No.3 being Certificate under Sub-section (1) of Section 5 of the DTVSV Act directing the petitioner to pay the amount of Rs.12,41,653/- on 14.12.2020. The petitioner was accordingly suppose to pay the amount of Rs.12,41,653/- on or before 31st March, 2021 and Rs.14,43,818/- after 31st March, 2021.

7.8. The petitioner by letter dated 3rd March, 2021 preferred an Application under Section 154 of the Act claiming the credit of Rs.14,470/- being the self-assessment tax paid as on 31.08.2012 from the total outstanding demand and requested the Assessing Officer to consider the prepaid tax under the Vivad se Vishvash Scheme as Rs.1,39,965/- instead of Rs.1,25,495/-.

7.9. It appears that the petitioner thereafter unilaterally reducing the amount payable as per Form 3 by Rs.14,470/-, paid Rs.