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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, PRANAV TRIVEDI, JJ.
Neelaben Ghanshyambhai Parmar - Petitioner
Versus
The Principal Commissioner Of Income Tax – Respondent
R/Special Civil Application No. 10560 of 2025 With R/Special Civil Application No. 10784 of 2025
Decided On : 08-09-2025
| Table of Content |
|---|
| 1. petition seeks to quash a rejection order. (Para 6 , 7) |
| 2. details regarding dtvsv scheme 2024 application. (Para 8 , 11 , 12) |
| 3. petitioner's arguments on eligibility criteria. (Para 13 , 14 , 15 , 17) |
| 4. court's analysis on appeal validity. (Para 19 , 20 , 21 , 23) |
| 5. court quashes rejection of petitioner's declaration. (Para 22 , 24 , 25) |
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr. Sudhir M. Mehta for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani for the respondent.
2. Having regard to the controversy involved, with the consent of the learned advocates for the respective parties, the matter is taken up for hearing.
3. The issue involved in both the petitions is identical and therefore, they have been heard together and would be disposed of by this common judgment.
4. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan Sanghani waives service of notice of rule on behalf of the respondent in the respective petitions.
5. For the sake of convenience, facts are recorded from Special Civil Application No.10560 of 2025.
6. By this petition under Article 227 of the Constitution of India, the petitioner has prayed to quash and set aside order dated 11.04.2025 rejecting the declaration made by the petitioner under Direct Tax Vivad Se Vishwas Scheme, 2024 (For short “the DTVSV Scheme, 2024”).
7. The petitioner filed the return of income for the Assessment Year 2012-2013 which was the subject to the assessment order passed under section 144 read with section 147 of the Income Tax Act, 1961 (For short “the Act”) dated 05.12.2019 making addition of Rs.30,80,770/-.
8. Being aggrieved, the petitioner preferred an appeal before the appellate authority along with application to condone the delay on 29.05.2023. Therefore, the appeal filed by the petitioner was pending as on 22.07.2024 which is the specified date as per provisions of section 89(1)(n) of the DTVSV Scheme, 2024.
9. By Finance (No.2) Act, 2024, the DTVSV Scheme, 2024 came into force as per Chapter IV from section 88 to section 99 of the said Act. As per the said Scheme for dispute resolution in respect of pending income tax litigation and to reduce the pending tax litigation in order to generate timely revenue for Government and benefit the tax payers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long drawn and vexatious litigation process, DTVSV Scheme, 2024 was notified with effect from 1.10.2024. The Rules under the DTVSV Scheme, 2024 have been notified on 20.09.2024.
10. Under section 97 of the DTVSV Scheme, 2024, the Central Board of Direct Taxes issued Guidance Note No.1/2024 in form of answers to the Frequently Asked Questions (FAQs) vide Circular No. 12 of 2024 dated 15.10.2024. Thereafter, Guidance Note No. 2/2024 was issued on 16.12.2024 and following FAQ NO.36 was inserted in place of FAQ NO.8 of Guidance Note No.1/2024 which reads as under:
| S. No. | Issue | Comments |
| Eligibility of cases | ||
| 36 | Suppose a taxpayer is eligible to apply for DTVSV Scheme, 2024 as his appeal is pending as on 22.7.2024. But subsequently, before the taxpayer could file declaration under the DTVSV Scheme, 2024, his appeal has been disposed off on merits or dismissed as withdrawn for the purposes of the Scheme. Can such a taxpayer still file declaration under the Scheme? | Yes, such cases are eligible for settlement under the Scheme as appeal was pending as on 22.7.2024. Disputed tax will be calculated in the same manner as if the appeal pending on 22.7.2024 is yet to be disposed off. |
11. The appeal preferred by the petitioner was disposed of by CIT(Appeals) in the month of October/December 2024 as non maintainable. The Central Government thereafter issued Notification No. S.O. 1650(E) [F.No.32/2025/F.No.370142/9/2025-TPL] dated 8.04.2025 in exercise of the powers conferred by clause(l) of sub-section (1) of section 89 of the Finance (No.2) Act, 2024 and notified the last d
The eligibility for the DTVSV Scheme is determined by the status of the appeal on the specified date, affirming that appeals deemed non-maintainable subsequently do not invalidate such eligibility.
The rejection of a declaration under the Direct Tax Vivad Se Vishwas Scheme cannot be upheld solely on the grounds of appeal irregularity or incompetency, provided it was pending on the specified dat....
Point of Law - if an appeal is filed with an application for condonation of delay and the appeal is admitted by the appellate authority before the date of filing of the declaration, the benefit is to....
The circular excluding appeals against orders under section 143(1)(a)(i) or (ii) from the DTVSV scheme was unsustainable and set it aside.
The court established that an appeal restored after the specified date can still be considered pending for the purposes of eligibility under the VSV Act.
Eligibility for settlement under tax dispute schemes is upheld even when a draft assessment order exists, provided a writ petition is pending, which confirms a disputed tax situation.
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 beneficia....
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