Facts of the Case

The petitioner, Smt. Shalini Goyal, had filed writ petitions before the Delhi High Court challenging certain proceedings initiated by the Income Tax Department. During the pendency of these writ petitions, the petitioner opted to resolve the dispute under the Direct Tax Vivad Se Vishwas Scheme introduced by the Government of India for settlement of pending tax disputes.

It was submitted that the petitioner had successfully applied under the scheme, Form-5 had been issued by the authorities, and the determined tax liability had already been paid.

Issues Involved

  1. Whether the writ petitions should continue after the petitioner has settled the tax dispute under the Direct Tax Vivad Se Vishwas Scheme.
  2. Whether compliance under the scheme renders the pending litigation infructuous.

Petitioner’s Arguments

  • The petitioner contended that after filing the writ petitions, she had opted for settlement under the Direct Tax Vivad Se Vishwas Scheme.
  • It was argued that Form-5 (final certificate) had already been issued by the department.
  • The entire tax liability determined under the scheme had been duly paid.

Respondent’s Arguments

  • The Revenue did not dispute the fact that the petitioner had availed the scheme.
  • It was acknowledged that Form-5 had been issued and payment had been made, thereby settling the dispute.

Court’s Findings / Order

The Delhi High Court observed that since the petitioner had opted for the Direct Tax Vivad Se Vishwas Scheme and had already complied with all requirements, including payment of tax liability, nothing survived in the writ petitions.

Accordingly, the Court disposed of the writ petitions and pending applications as satisfied.

Important Clarification

  • Once a taxpayer opts for the Direct Tax Vivad Se Vishwas Scheme and completes the formalities (including issuance of Form-5 and payment), the underlying litigation becomes infructuous.
  • Courts may dispose of such matters without going into merits, as the dispute stands settled.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2021:DHC:4448-DB/MMH23112021CW53892019_155306.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.