Facts of the Case

  • The petitioner, Transcend India Private Limited, filed a writ petition seeking correction of a challan related to Assessment Year 2003–04.
  • The issue arose because the challan payment of ₹25 lakhs was deposited under an incorrect PAN, leading to denial of credit.
  • Consequently, the refund reflected in Form-3 under the Vivad Se Vishwas Scheme was reduced.
  • The petitioner sought:
    • Correction of challan, and
    • Issuance of revised Form-3 reflecting the correct refund amount.
  • During proceedings, the Revenue acknowledged that the challan error had been corrected and credit could be granted.

Issues Involved

  1. Whether the petitioner is entitled to credit of ₹25 lakhs after correction of challan.
  2. Whether Form-3 under the Vivad Se Vishwas Act, 2020 can be revised.
  3. Whether the petitioner is entitled to interest under Section 244A on the refund amount.

Petitioner’s Arguments

  • The petitioner contended that:
    • The challan was validly paid but wrongly linked to an incorrect PAN.
    • Upon correction, full credit must be granted.
    • The refund amount should be revised accordingly in Form-3.
  • Alternatively, directions were sought for correction of Form-3 to reflect accurate refund entitlement.

Respondent’s Arguments

  • The Revenue submitted that:
    • The challan error has now been rectified based on details provided by the assessee.
    • Credit of ₹25 lakhs can be granted.
    • However, Form-3 and Form-5 under the Vivad Se Vishwas Scheme are final and cannot be revised.
    • Refund can be issued only upon directions of the Court.
    • Interest under Section 244A is not payable, since delay was attributable to the assessee and the matter was settled under the scheme.

Court Findings / Order

  • The Court recorded that:
    • The Revenue has accepted the petitioner’s claim regarding challan correction.
    • Refund of ₹25 lakhs is admissible.
  • The writ petition was disposed of with the following directions:
    1. The authorities shall proceed under the Vivad Se Vishwas Act from the current stage.
    2. Necessary correction of challan shall be carried out.
    3. Refund of ₹25 lakhs shall be granted within 3 weeks.
  • The Court also recorded the petitioner’s statement:
    • No claim for interest under Section 244A will be made.

 

Important Clarifications

  • Form-3 under Vivad Se Vishwas Scheme is final and non-revisable.
  • Refund can still be granted via Court direction despite non-revision of forms.
  • Interest under Section 244A may be denied where:
    • Delay is attributable to the assessee, and
    • Settlement occurs under the Vivad Se Vishwas Scheme.
  • Waiver or denial of interest under Section 244A depends on fault attribution and scheme settlement context.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/RAS14122023CW125062021_182307.pdf

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