Facts of the Case

The petitioners had approached the Delhi High Court seeking appropriate directions against the Income Tax Department concerning the issuance of revised Form-3 under the Direct Tax Vivad Se Vishwas Scheme, 2020. The grievance primarily arose due to alleged discrepancies or non-compliance in issuance of Form-3 by the designated authority, impacting settlement of pending tax disputes.

During the pendency of the writ petitions, the designated authority issued the revised Form-3 in accordance with the reliefs sought by the petitioners. Consequently, the dispute stood substantially resolved.

Issues Involved

  1. Whether the Income Tax Department was required to issue revised Form-3 in conformity with the declaration filed by the petitioners under the Vivad Se Vishwas Scheme?
  2. Whether writ jurisdiction under Article 226 could be invoked for correction or issuance of Form-3 under the Scheme?
  3. Whether the petitions survived after compliance by the Revenue Authority 

Petitioner’s Arguments

  • The petitioners contended that the Form-3 issued earlier was not in accordance with the statutory framework and declarations filed.
  • It was argued that the incorrect computation adversely affected their statutory right to settle tax disputes under the Vivad Se Vishwas Scheme.
  • The petitioners sought issuance of revised Form-3 reflecting the correct computation.

Respondent’s Arguments

  • The Revenue, during the pendency of proceedings, rectified the grievance by issuing revised Form-3.
  • It was submitted that the relief sought by the petitioners had already been granted and therefore the writ petitions had become infructuous.

Court Findings / Observations

The Delhi High Court recorded the statement of the petitioners that the revised Form-3 had been issued in accordance with the prayer made in the petitions. Since the substantive relief had already been granted, the Court held that nothing further survived for adjudication.

The Court observed that the petitions had become infructuous and accordingly disposed them as satisfied.

Court Order / Final Decision

The Delhi High Court disposed of all the writ petitions after recording that the revised Form-3 had been issued and the petitioners’ grievances stood redressed. No further directions were considered necessary.

Important Clarification

This judgment clarifies that where the Revenue Authority rectifies and issues revised Form-3 during pendency of proceedings under the Vivad Se Vishwas Scheme, the writ petitions may become infructuous and can be disposed of without adjudication on merits.

The case reinforces procedural compliance by the designated authority under the settlement scheme.

Sections Involved

  • Section 4 – Filing of declaration under Vivad Se Vishwas Scheme
  • Section 5 – Determination of amount payable by designated authority
  • Section 3 – Amount payable under the Scheme
  • Relevant provisions of the Direct Tax Vivad Se Vishwas Act, 2020

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

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