Case Note & Summary
The Petitioner challenged the rejection of her application under Direct Tax Vivad Se Vishwas Act, 2020 by the Principal Commissioner of Income Tax -- The rejection was based on the ground that she had not filed an appeal against the Assessment Order -- The Court found that the Petitioner and her husband were governed by Section 5A of Income Tax Act, 1961 which provides for apportionment of income between spouses under Portuguese Civil Code -- The Petitioner's husband had filed an appeal covering both their incomes, and his application under the Scheme had been accepted -- The Court held that the rejection was arbitrary and contrary to the Scheme's objectives -- The Writ Petition was allowed, the impugned order quashed, and the matter remanded for fresh consideration
Headnote
The High Court of Bombay at Goa allowed the Writ Petition filed under Article 226 of Constitution of India challenging the rejection of the Petitioner's application under Direct Tax Vivad Se Vishwas Act, 2020 -- The Court held that the rejection order dated 17.03.2021 was arbitrary and perverse as it failed to consider the peculiar circumstances under Section 5A of Income Tax Act, 1961 -- The Petitioner and her husband, governed by Portuguese Civil Code, had their income apportioned under Section 5A -- The Petitioner's husband had filed an appeal covering both their incomes, making a separate appeal by the Petitioner unnecessary -- The Court emphasized that the Scheme's objective was to settle disputes and the technical requirement of filing a separate appeal should not defeat this purpose -- The rejection order was quashed and the matter remanded for fresh consideration
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Issue of Consideration: Whether the Petitioner was entitled to avail benefits under the Direct Tax Vivad Se Vishwas Act, 2020 despite not filing a separate appeal against the Assessment Order, considering the peculiar circumstances under Section 5A of the Income Tax Act, 1961 and the pendency of her husband's appeal covering her income
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Final Decision
The Writ Petition was allowed -- The impugned order dated 17.03.2021 was quashed and set aside -- The matter was remanded to the 1st Respondent for fresh consideration in accordance with law -- The 1st Respondent was directed to decide the application within eight weeks
