Re: Whether case is covered in Vivad Se Vishwas Scheme

Dear Sir,

ITAT passed the order on 25.03.2019 confirming the addition which was received on 03.05.2019. Against order of the ITAT, MA u/s 254(2) was submitted on 02.12.2019 fixing the case on 14.02.2020. On 03.02.2020, the counsel of the assessee submitted an application that he will be out of station, hence cannot attend on 14.02.2020. As the MA was pending as on 31.01.2020, whether the case is covered under Vivad Se Vishwas Scheme.

As  per section 254(2) . the rectification application has to be filed within six months  from the end of the month in which the order was passed.  Six months ends on November 2019 being Saturday and 1.12.2019 being Sunday  , the rectification application filed by the assessee is with in period of limitation .    we understand, a miscellaneous application was filed  within the prescribed limitation period and pending for disposal as on 31-01 2020  In  Liladhar T. Khushlani v. Commissioner of Customs  (TA No. 915 of 2016, dt. 25.01.2017)  (Guj) (HC), www.itatonline.org held that for purposes of filing a rectification application, the period of limitation of six months commences from the date of receipt of the order sought to be rectified by the assessee and not from the date of passing of the order. followed ratio in  D. Saibaba v. Bar Council of India AIR 2003 SC 2502. In  Peterplast Synthetics P. Ltd. v. ACIT (2014) 364 ITR 16 (Guj.)(HC) held that for   application for rectification starting point for limitation is actual date of receipt of order of Tribunal. In Jagmohan Gurbakshish Singh v. DCIT  (M. A. No. 42/Chd/2018, dt. 27.04.2018)  (Chd.)(Trib.) www.itatonline.org  The limitation period for filing a Rectification Application has to be computed from the date of “communication” of the order and not from the date of passing the order.   As per section 10 of the General Clauses Act , 1897 , read with section  4 of the Limitation Act, 1963 , enable a person to do what he could  not have done on a holiday on the next working day. Accordingly the Miscellaneous application is with in the period of limitation ( Refer H.H .Raja Harvinder Singh v.S  .Karnail Singh ,AIR 1957 SC 271, Rambir Narhargir Gosai  v. Prabahakar Bhaskar Godhaway & Ors AIR , 1985 Nagpur 300,  Umedsingh Baliram Raghbanshi v .Shankellal Jahankalal & Ors AIR (35) 1948  Nagpur 63 , Flowmore Pvt Ltd v.Keshav Kumar Swarup , AIR 1983 Delhi 143 )

Rectification u/s 254 (2) is continuation of appeal proceedings before the ITAT,   hence one may take the view that even when rectification application is pending it can be construed as pending. let us take an example if rectification is allowed the appeal is restored ,  it relate back the date of filing of an appeal. Hence the assessee can opt for the scheme when the miscellaneous application is pending for final disposal.  One may   have to consider in following cases the Courts have held that order rejecting the application made u/s. 254(2) of the Act is not maintainable. Chem Amit v. ACIT (2005) 272 ITR 397 (Bom.)(HC) , Safari Mercantile Pvt. Ltd. v. ITAT (2016) 386 ITR 4 (Bom.) (HC), CIT v. Singhal Industries (2017) 395 ITR 264 (Raj) (HC), Madhav Marbles & Granites v. ITAT (2012) 65 DTR 217 / 246 CTR 243 / 2012 Tax LR 465 (Raj.)(HC)

  

It may be desirable to Board clarify the issue.  In case the Competent  authority  is  rejecting the application , the assessee can approach High Court by filing writ petition . 

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