Facts of the Case

The appellant, Shanghai Electric Group Company Limited, filed multiple income tax appeals before the Delhi High Court against orders passed by the Commissioner of Income Tax. These appeals pertained to various assessment years and were registered under ITA Nos. 639/2017, 717/2017, 718/2017, 720/2017, 721/2017, 722/2017, 723/2017, and 922/2017.

During the pendency of these appeals, the appellant opted to resolve the disputes under the Government’s amnesty scheme, namely the Vivad se Vishwas Scheme. 

Issues Involved

  • Whether the pending income tax appeals should continue when the dispute has been settled under the Vivad se Vishwas Scheme.
  • Whether such appeals become infructuous upon settlement under the amnesty scheme.

Petitioner’s Arguments (Appellant)

  • The learned counsel for the appellant submitted that all disputes involved in the present appeals had been amicably resolved under the Vivad se Vishwas Scheme.
  • It was contended that in light of such settlement, the appeals no longer survived for adjudication and had become infructuous.

Respondent’s Arguments

  • The respondent (Commissioner of Income Tax) was represented and did not raise any objection to the statement made by the appellant regarding settlement under the scheme.

Court Findings / Order

  • The Delhi High Court noted the submission of the appellant that the disputes had been resolved under the Vivad se Vishwas Scheme.
  • The Court accepted the submission and held that the appeals had become infructuous.
  • Accordingly, all the connected appeals were disposed of as infructuous.

Important Clarification

  • The Court did not adjudicate on the merits of the case.
  • Disposal was purely based on settlement under the Vivad se Vishwas Scheme.
  • Such disposal does not create a precedent on substantive tax issues involved in the appeals.

Sections Involved

  • Income Tax Act, 1961 (General appellate provisions under Section 260A)
  • Vivad se Vishwas Scheme, 2020 (Direct Tax Vivad se Vishwas Act, 2020)


Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2020:DHC:3903-DB/MMH22122020ITA6392017_160435.pdf

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