Govindrajulu Naidu v. PCIT (2021)435 ITR 703/ 201 DTR 241/ 320 CTR 673/ 280 Taxman 392 (Bom)(HC)

Direct Tax Vivad Se Vishwas Act, 2020

S. 2(b): Appellate forum- Disputed Tax—Pendency of appeal — Declaration cannot be rejected on ground that assessee had offered an amount for taxation – The rejection of the declaration under the 2020 Act was not valid. [ S. 2 (j) ]

The declaration was rejected on the online portal without giving any opportunity to the assessee observing that there was no disputed tax in the case of the declarant, as the declarant had himself filed a return reflecting the income. On writ allowing the  petition the court held that   the Department did not dispute that an appeal had been filed by the assessee before the appellate forum. There existed a dispute as referred to under the 2020 Act and the Rules. In such a scenario, the Department’s contention that the assessee had offered the income and as such, the tax thereon could not be considered disputed tax, would not align itself with the object and the purpose underlying the bringing in of the 2020 Act. The rejection of the declaration under the 2020 Act was not valid.( AY. 2014-15)

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