Facts of the Case

The present batch of appeals was filed by Shanghai Electric Group Company Limited before the Delhi High Court against the orders passed by the Commissioner of Income Tax. Multiple appeals (ITA Nos. 639/2017, 717/2017, 718/2017, 720/2017, 721/2017, 722/2017, 723/2017, and 922/2017) were clubbed together for adjudication.

During the course of proceedings, it was submitted by the counsel appearing for the appellant that the disputes involved in the present appeals had already been resolved amicably under the Government’s amnesty scheme known as the “Vivad Se Vishwas Scheme.” 

Issues Involved

  1. Whether the appeals filed by the assessee survive for adjudication after settlement under the Vivad Se Vishwas Scheme.
  2. Whether the High Court is required to decide the merits of the case once the dispute stands resolved under the amnesty scheme. 

Petitioner’s Arguments

  • The appellant submitted that all pending disputes forming the subject matter of the appeals had been settled under the Vivad Se Vishwas Scheme.
  • It was contended that in light of such settlement, the present appeals had become infructuous and no further adjudication was required. 

Respondent’s Arguments

  • The Revenue was represented by counsel; however, no substantive objection was recorded against the statement made by the appellant regarding settlement.
  • The matter was left to the discretion of the Court in view of the resolution under the scheme.

Court’s Findings / Order

The Division Bench of the Delhi High Court comprising Hon’ble Justice Manmohan and Hon’ble Justice Sanjeev Narula held:

  • The Court accepted the submission made by the appellant regarding settlement under the Vivad Se Vishwas Scheme.
  • Since the disputes had already been resolved, the appeals no longer required adjudication.
  • Accordingly, all the connected appeals were disposed of as infructuous.

Important Clarification

  • The Court did not examine the merits of the case.
  • Disposal of the appeal as infructuous implies that:
    • No legal precedent on substantive tax issues was laid down.
    • The closure is purely procedural due to settlement under the amnesty scheme.

Sections Involved

  • Income Tax Act, 1961 (Relevant provisions not adjudicated due to settlement)
  • Vivad Se Vishwas Act, 2020 (Amnesty Scheme for dispute resolution)

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

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