Facts of the Case

The appellant, Shanghai Electric Group Company Limited, filed multiple income tax appeals before the Delhi High Court challenging orders passed by the Commissioner of Income Tax. During the pendency of these appeals, the disputes between the parties were resolved under the Vivad se Vishwas Scheme, an amnesty scheme introduced to settle tax disputes.

Issues Involved

  • Whether the pending income tax appeals survive after settlement under the Vivad se Vishwas Scheme.
  • Whether such appeals are liable to be disposed of as infructuous upon settlement.

Petitioner’s Arguments

  • The appellant submitted through counsel that all disputes involved in the present appeals had been amicably resolved under the Vivad se Vishwas Scheme.
  • Therefore, the appeals no longer required adjudication on merits.

Respondent’s Arguments

  • The respondent (Commissioner of Income Tax) was represented, and no objection was recorded against the statement of settlement. 

Court’s Findings / Order

  • The Court accepted the submission made by the appellant.
  • It observed that since the disputes had been resolved under the Vivad se Vishwas Scheme, the appeals had become infructuous.
  • Accordingly, all appeals were disposed of as infructuous.

Important Clarification

  • The judgment does not decide the merits of the tax issues involved.
  • Disposal is purely based on settlement under the Vivad se Vishwas Scheme.
  • Such disposal does not create a precedent on substantive tax law issues.

Sections Involved

  • Income Tax Act, 1961 (Appeals under Section 260A)
  • Vivad se Vishwas Scheme (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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