Interference of Court unnecessary if assessee has availed benefit under the Direct Tax Vivad Se Vishwas
Deepak Gupta | Sep 20, 2021 |
Interference of Court unnecessary if assessee has availed benefit under the Direct Tax Vivad Se Vishwas
High Court of Madras considered it unnecessary to interfere in a petition by the assessee for adjudication on the point of deduction of royalty for providing know-how u/s 80 HHC of the Income Tax Act if the assessee has availed the benefit under the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020),
M/s Fenner (India) Ltd. vs. The Addl. Commissioner Tax; Tax Appeal no. 440 of 2021; High Court of Madras; 26.08.2021
The Bench dealt with two issues in the present case:
It was held that it was not necessary for the Court to decide the aforesaid issues on account of certain subsequent developments. The Government of India enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. Since the assessee has availed the benefit of Vivad Se Vishwas Scheme and the assessee had already been issued with Form-3 on 13.01.2021. However, in order to protect the interest of the assessee, in the event the order to be passed by the Department under the scheme is not in favour of the assessee, the assessee is given liberty to restore the appeal in the event the ultimate decision to be taken on the declaration filed by the assessee under Section 4 of the said Act is not in favour of the assessee.
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