ORDER

(Per Hon’ble Sri Justice T.C.D. Sekhar)

1. The petitioner is a registered person under Income Tax Act having engaged in the business of Works Contracts. Pursuant to search operation on the premises of the petitioner, the respondent authorities took up the assessment against the petitioner and accordingly raised a demand of Rs.29,60,420/- vide assessment order dt.28.03.2014 passed under Section 143 (3) r/w. Section 254 of Income Tax Act, 1961.

2. Aggrieved by the said assessment order, the petitioner preferred appeal and in view of introduction of DTVSV scheme (Direct Tax Vivad se Vishwas Scheme) by the Government of India, the appeal was withdrawn with liberty to file appropriate application under the said scheme. This scheme provides mechanism for resolution of pending tax disputes related to Income Tax. In this scheme, tax payers are provided an opportunity to settle their disputes by paying the disputed tax amount without any interest or penalty.

3. The petitioner approached the respondent authorities expressing his intention to avail the said scheme and accordingly filed declaration in Form-I, dt.23.12.2020. After processing the request of the petitioner, the 2nd respondent issued a certificate in Form-3 by mentioning the amount payable by the petitioner towards full and final settlement of the alleged tax earlier under the said scheme. As per Form-3, the petitioner was directed to pay an amount of Rs.25,96,438/- on or before 31.03.2021 and an amount of Rs.28,56,082/- after 31.03.2021.

4. The petitioner noticing certain discrepancies in Form-3, dt.29.01.2021 in computation, approached the respondent Nos.2 & 3 vide letter dt.12.02.2021 to rectify the error crept therein, so as to make the necessary payments. Since, the petitioner was directed to pay the tax on or before 30.09.2021, while pending consideration of this letter dt.12.02.2021, he made certain payments during the interregnum. After realizing the mistake in computation, the respondent authorities issued revised Form-3, dt.29.10.2021 requiring the petitioner to deposit an amount of Rs.23,36,812/- on or before 30.09.2021, otherwise an amount of Rs.25,70,493/- after 30.09.2021. In view of issuance of revised Form-3, the petitioner has paid the balance amount of entire tax (total Rs.23,36,812/-) on 30.10.2021. After payment was made, the petitioner filed Form-4, dt.30.10.2021 intimating the same to the respondent authorities. However, the 4th respondent issued demand notice dt.12.04.2023 asking the petitioner to pay an amount of Rs.6,23,708/- on the premise that the petitioner has paid an amount of Rs.23,36,812/- on 30.10.2021, which is not in consonance with Form-3, dt.29.10.2021, inasmuch as the petitioner has did not adhere to the time limit prescribed thereunder. Further, the 2nd respondent also passed order dt.15.09.2023 under Section 220(2)(A) of the Act charging interest on the petitioner for the delayed payment. Questioning these proceedings, the present is filed inter alia challenging the action of respondent authorities in not closing the issue by furnishing Form-5 to the petitioner.

5. Heard Sri Avula Aakash, counsel representing Sri S.Vivek Chandrasekhar and Sri Y.N.Vivekananda, learned Senior Standing Counsel for Income Tax.

6. Perused the record.

7. The counsel for the petitioner would contend that having issued revised Form-3 asking the petitioner to pay an amount of Rs.23,36,812/-, the respondents authorities ought to have issued Form-5 by closing the entire issue under the aforesaid scheme. He would further contend that revised Form-3 was issued on 29.10.2021 and a perusal of the same, would show that the petitioner was directed to pay the amount mentioned therein on or before 30.09.2021, which is impossible, that the same was either inadvertently or to deny the benefit conferred under the said scheme.

8. On the other hand, the learned counsel appearing for the department while not disputi