Facts of the Case

  • Multiple petitioners including Nimit Builders Pvt. Ltd., Aditya Saraf, Ramesh Chandra Saraf, and others filed writ petitions before the Delhi High Court.
  • The dispute pertained to income tax proceedings involving issuance/revision of Form-3.
  • Petitioners approached the Court seeking appropriate directions for rectification and issuance of correct Form-3.
  • During the course of hearing, the respondents issued revised Form-3 satisfying the relief sought by the petitioners.

Issues Involved

  1. Whether the writ petitions survive once the relief sought has already been granted by the revenue authorities?
  2. Whether issuance of revised Form-3 resolves the dispute under the applicable tax settlement mechanism?

Petitioner’s Arguments

  • The petitioners contended that:
    • The original Form-3 issued was incorrect or deficient.
    • They were entitled to correct computation and issuance of revised Form-3.
    • Relief was necessary to ensure proper implementation of the settlement scheme.

Respondent’s Arguments

  • The Revenue (Income Tax Department) submitted that:
    • Revised Form-3 had already been issued.
    • The grievances raised in the petitions had been addressed.
    • Therefore, no further adjudication was required.

Court Order / Findings

  • The Delhi High Court observed that:
    • The petitions had become infructuous since the revised Form-3 had been issued.
  • Accordingly, the Court held:

The writ petitions are disposed of as satisfied.

Important Clarification by the Court

  • Once the relief sought in writ jurisdiction is granted during pendency, the Court will not proceed with adjudication.
  • The Court emphasized practical resolution over academic adjudication.

Sections Involved

  • Income Tax Act, 1961
  • Provisions relating to issuance of Form-3 (Vivad se Vishwas Scheme / related settlement framework)
  • Article 226 of the Constitution of India (Writ Jurisdiction

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2021:DHC:4480-DB/MMH25082021CW25842021_163205.pdf

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