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Pragati Pre Fab India (P.) Ltd. v. PCIT (2023) 295 Taxman 269 (Bom.)(HC)

Direct Tax Vivad Se Vishwas Act, 2020 ( 2020) 422 ITR 121 ( St)

S. 9 : Act not to apply in certain cases – Tax arrear – Prosecution has been instituted on or before the date of filing of declaration- Prosecution has to be in respect of tax arrear which is relatable to an assessment year –Directed the authorities to decide the declation in conformity with the DTVSV Act. [ S. 2(1)(o ), S. 276C(2)), 278B, Art. 226 ]

The petitioner has filed the declaration for settling the dispute in respect appeals pending . The Authorities rejected the declaration on the ground that the posecution has been initiated for failure to deposit the self assessment tax . On writ allowing the petition the Court held that where the prosecution had been instituted against assessee under section 276C(2), prosecution cannot be said to be in respect of tax arrear and hence, declaration of assessee would have to be decided in conformity with provisions of DTVSV Act.

Circulars and Notifications : Circular No. 21/2020, dated 4-12-2020 . (2020) 429 ITR 1 (St) . Relied on Macrotech Developers Ltd. (2021 ) 434 ITR 131/ 280 Taxman 137  ( Bom)( HC) .(AY. 2010-11 ,  2011-12)