Assessee Can’t Be Obstructed From Availing DTVSV Act Benefits Even When Limitation Period For Appeal Hasn’t Expired: Delhi High Court

The Delhi High Court has ruled that taxpayers cannot be prevented from availing the benefits of the Direct Tax Vivad se Vishwas Act, 2020 (DTVSV Act), even if the limitation period for filing an appeal has not yet expired. This judgment was delivered by a bench comprising Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav. The court noted that the DTVSV Act is designed to resolve long-standing tax disputes and ensure the timely collection of taxes. The case in question involves the assessment year 2010-11, which has already consumed significant time and resources in ongoing litigation. The court highlighted that the intent of the DTVSV Act is to reduce litigation and expedite tax collection by providing a settlement scheme for disputes. \r

The bench observed that the taxpayer's desire to utilize the benefits of this settlement scheme should not be hindered by the pending expiration of the appeal period. In essence, the DTVSV Act aims to unlock tax arrears tied up in protracted litigation, ultimately facilitating efficient tax collection and reducing the burden on judicial resources. By allowing the taxpayer to avail the DTVSV Act's benefits, the court reinforces the legislation's objective of promoting timely dispute resolution and minimizing litigation. This decision underscores the court's support for legislative measures intended to streamline tax administration and enhance compliance.