Facts of the Case

The present batch of appeals was filed by Shanghai Electric Group Company Limited before the Delhi High Court against the Commissioner of Income Tax in relation to various Income Tax Appellate Tribunal matters (ITA Nos. 639/2017, 717/2017, 718/2017, 720/2017, 721/2017, 722/2017, 723/2017, and 922/2017).

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

 

Issues Involved

  • Whether the appeals pending before the High Court survive for adjudication once the disputes are settled under the Vivad se Vishwas Scheme.
  • Whether such appeals should be disposed of as infructuous upon settlement under the said scheme.

 

Petitioner’s Arguments

  • The appellant submitted that all the disputes forming the subject matter of the appeals had been settled under the Vivad se Vishwas Scheme.
  • Consequently, the appeals no longer required adjudication and had become infructuous.

 

Respondent’s Arguments

  • The respondent was represented by counsel; however, no specific opposition to the submission regarding settlement under the scheme is recorded in the order.
  • The matter proceeded on the basis of the appellant’s statement regarding settlement.

 

Court’s Findings / Order

The Division Bench of the Delhi High Court observed that:

  • The appeals had been rendered infructuous due to settlement under the Vivad se Vishwas Scheme.
  • Accordingly, all the appeals were disposed of as infructuous.

The Court did not enter into the merits of the case in view of the settlement.

 

Important Clarification

  • The Court’s order is procedural in nature and does not adjudicate on substantive tax issues.
  • Disposal as infructuous implies that no legal findings were made on the merits of the disputes.
  • The order reinforces that once disputes are settled under statutory amnesty schemes, pending litigation becomes redundant.

 

Sections Involved

  • Income Tax Act, 1961 (general appellate provisions – specific sections not discussed in the order)
  • Direct Tax Vivad se Vishwas Act, 2020 (Amnesty Scheme)

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

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