Case Note & Summary
The case involves a batch of writ petitions filed by Radha Madhav Eco-Industrial Park and other petitioners challenging the rejection of their declarations under the Direct Tax Vivad Se Vishwas Scheme, 2024. The petitioners had filed appeals against assessment orders under the Income Tax Act, 1961, which were pending before the Commissioner of Income Tax (Appeals). They sought to avail the benefit of the Vivad Se Vishwas Scheme by filing declarations under Section 96 of the Direct Tax Vivad Se Vishwas Act, 2024. The Department rejected the declarations on the ground that the tax amount was not paid before filing the declaration. The petitioners argued that Section 96 of the Act permits filing of declaration for pending appeals even if the tax is not paid, and the scheme's provisions override the requirement of prior payment. The Court analyzed the provisions of Section 96 and the scheme's objective to reduce litigation. It held that the rejection was invalid as the scheme allows filing of declaration for pending appeals without prior payment of tax. The Court directed the Department to accept the declarations and process them in accordance with the scheme. The judgment was delivered by a Division Bench of the Gujarat High Court on 18/02/2026.
Headnote
A) Direct Tax Vivad Se Vishwas Scheme, 2024 - Section 96 - Pending Appeal - Declaration - The issue was whether a declaration under Section 96 can be filed for a pending appeal even if the tax amount is not paid. The Court held that Section 96 of the Direct Tax Vivad Se Vishwas Act, 2024 permits filing of declaration for pending appeals irrespective of payment of tax, and the scheme's provisions override the requirement of prior payment. The rejection of declaration by the Department was set aside. (Paras 1-11)
Issue of Consideration
Whether Section 96 of the Direct Tax Vivad Se Vishwas Scheme, 2024 permits filing of declaration for pending appeals even if the tax amount is not paid, and whether the rejection of such declaration by the Department is valid.
Final Decision
The Court allowed the writ petitions, set aside the rejection orders, and directed the Department to accept the declarations and process them in accordance with the Direct Tax Vivad Se Vishwas Scheme, 2024.
Law Points
- Section 96 of Direct Tax Vivad Se Vishwas Act
- 2024
- pending appeal
- declaration
- tax payment
- scheme override
