DEPUTY COMMISSIONER OF INCOME TAX vs. R K TRANSPORT AND CONSTRUCTIONS PVT. LTD.

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TAXC/78/2019HC ChhattisgarhCGHC01024772201927 August 2024Author: HON'BLE SHRI JUSTICE SANJAY K. AGRAWAL,HON'BLE SHRI JUSTICE AMITENDRA KISHORE PRASAD3 pages
AI SummaryDisposed Off

What did the High Court hold?

The High Court held that since the assessees have made a full and final settlement of tax arrears under Section 5(2) read with Section 6 of the Direct Tax Vivad Se Vishwas Act, 2020, and have paid the settlement amounts on February 8, 2021, and March 1, 2021, which was not disputed by the Revenue, no cause of action survives for the consideration of the tax appeals. Consequently, the appeals were disposed of. The operative direction was to dispose of the tax cases. No issue was expressly left undecided.

What were the facts?

The Deputy Commissioner of Income Tax, Central Circle, Raipur (the Revenue) filed these tax appeals against the order dated January 18, 2018, passed by the Income Tax Appellate Tribunal (ITAT), Raipur. The appeals were filed against two assessees: M/s. R. R. Energy Ltd. and R K Transport And Constructions Pvt. Ltd. The appeals concern assessment years that are not specified in the judgment. The appeals were heard by a Division Bench of the High Court of Chhattisgarh at Bilaspur. During the hearing, the counsel for the assessees stated that full and final settlement amounts for tax arrears were paid under Section 5(2) read with Section 6 of the Direct Tax Vivad Se Vishwas Act, 2020, on February 8, 2021, and March 1, 2021. This fact was not disputed by the Revenue's counsel.

What were the issues?

1. Whether the tax appeals filed by the Revenue survive for consideration given that the assessees have made a full and final settlement of tax arrears under the Direct Tax Vivad Se Vishwas Act, 2020? (Question of law) Assessee's Contention: The assessees argued that they have availed the Direct Tax Vivad Se Vishwas Act, 2020, and have paid the full and final settlement amount for the tax arrears on February 8, 2021, and March 1, 2021. Therefore, no cause of action survives for the appeals to be considered. Revenue's Contention: The Revenue did not dispute the fact stated by the assessee's counsel regarding the settlement under the Vivad Se Vishwas Act, 2020, and the payment of settlement amounts.

Which sections of the Income-tax Act were involved?

Section 5(2),Section 6

AI-generated summary — verify with the full judgment below

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NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 42 of 2019 1 - Deputy Commissioner Of Income Tax Central Circle, Raipur, District- Raipur, Chhattisgarh., District : Raipur, Chhattisgarh

----Appellant Versus 1 - M/s. R. R. Energy Ltd. N.H. No. 22, Village Garhumariya, Jharsuguda Road, Raigarh, Chhattisgarh., District : Raigarh, Chhattisgarh ---- Respondent TAXC No. 45 of 2019 1 - Deputy Commissioner Of Income Tax Central Circle, Raipur, District - Raipur Chhattisgarh., District : Raipur, Chhattisgarh ----Appellant Versus 1 - M/s. R. R. Energy Ltd. N. H. No. 22, Village Garhumariya, Jharsuguda Road, Raigarh Chhattisgarh., District : Raigarh, Chhattisgarh ---- Respondent TAXC No. 57 of 2019 1 - Deputy Commissioner Of Income Tax Central Circle Raipur, District Raipur Chhattisgarh., District : Raipur, Chhattisgarh

----Appellant Versus 1 - R K Transport And Constructions Pvt. Ltd. Beside Ceat Tyre, Transport Nagar, Korba Chhattisgarh., District : Korba, Chhattisgarh

---- Respondent VISHAKHA BEOHAR BEOHAR Date: 2024.08.29 10:24:48 +0530

2 / 3 TAXC No. 58 of 2019 1 - Deputy Commissioner Of Income Tax Central Circle Raipur, District Raipur Chhattisgarh., District : Raipur, Chhattisgarh

----Appellant Versus 1 - R K Transport And Constructions Pvt. Ltd Beside Ceat Tyre, Transport Nagar, Korba Chhattisgarh., District : Korba, Chhattisgarh

---- Respondent TAXC No. 77 of 2019 1 - Deputy Commissioner Of Income Tax Central Circle, Raipur, District Raipur Chhattisgarh, District : Raipur, Chhattisgarh

----Appellant Versus 1 - R K Transport And Constructions Pvt. Ltd. Beside Ceat Tyre, Transport Nagar, Korba Chhattisgarh, District : Korba, Chhattisgarh

---- Respondent TAXC No. 78 of 2019 1 - Deputy Commissioner Of Income Tax Central Circle, Raipur, District Raipur Chhattisgarh, District : Raipur, Chhattisgarh

----Appellant Versus 1 - R K Transport And Constructions Pvt. Ltd. Beside Ceat Tyre, Transport Nagar, Korba Chhattisgarh, District : Korba, Chhattisgarh

---- Respondent (Cause-title taken from the Case Information System) --------------------------------------------------------------------------------------------------------------- For Appellant(s) :- Mr. Amit Choudhari & Mr. Topilal Bareth, Advocates For Respondent(s) :- Mr. Kshitij Sharma, Advocate --------------------------------------------------------------------------------------------------------------- Division Bench- Hon'ble Shri Justice Sanjay K. Agrawal and Hon’ble Shri Justice Amitendra Kishore Prasad Order On Board

3 / 3 28.08.2024

1.

Heard.

2.

The appellants have preferred these tax appeals against the order dated 18.01.2018 (Annexure A-1) passed by the Income Tax Appellate Tribunal, Raipur (for Short ’ITAT’).

3.

It is stated at the Bar by learned counsel for the assessee/respondent that on taking full and final settlement amount of tax arrear under Section 5(2) read with Section 6 of the Direct Tax Vivad Se Vishwas Act, 2020 all taxes have been paid on 08.02.2021 and 01.03.2021. 4. The said fact has not been disputed by learned counsel for the appellant.

5.

In that view of the matter, these tax cases are accordingly disposed off, as no cause of action survives for consideration. (Sanjay K. Agrawal) (Amitendra Kishore Prasad) Judge Judge Vishakha

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