Gujarat HC: Eligibility for DTVSV Scheme, 2024 if Appeal is Later Held Non-Maintainable

The petitioner challenged the rejection of her declaration under the Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV Scheme). For AY 2012-13, her assessment was completed under Section 144 r.w.s. 147 on 05.12.2019 with an addition of Rs. 30.80 lakh. An appeal was filed before the CIT(A) on 29.05.2023, which was pending as on 22.07.2024, the specified date under Section 89(1)(n) of the Scheme.

CIT(A) Held: Thereafter, the CIT(A) disposed of the appeal in October/December 2024 as non-maintainable. When the petitioner filed a declaration in Form-1 under the DTVSV Scheme on 11.03.2025, the Designated Authority rejected it on 11.04.2025, holding her ineligible as the appeal was not a “valid appeal”.

Issue Raised: Whether rejection of a DTVSV declaration is valid on the ground that the appeal, though pending on the specified date, was later dismissed as non-maintainable.

HC Held: The Court allowed the petitions, holding that pendency of an appeal on 22.07.2024 is the only requirement for eligibility under the DTVSV Scheme, 2024. Relying on SC and HC precedents, the Court ruled that even an irregular or incompetent appeal, if pending on the specified date, cannot be excluded. The Court emphasised that the Designated Authority could not reject a declaration on the ground that the appeal was not valid or competent once it was pending on the cut-off date.

Therefore, the Court quashed the rejection dated 11.04.2025 and directed the Designated Authority to process the petitioner’s Form-1 under the Scheme.

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