Tax Liability Already Attaining Finality Under VSV Can't Be Altered By Invoking Rectification Action U/s 154: Delhi High Court

The Delhi High Court ruled that a tax liability finalized under the Vivad se Vishwas (VSV) scheme cannot be altered by invoking rectification actions under Section 154 of the Income Tax Act. The court clarified that the VSV scheme, aimed at resolving tax disputes by offering a settlement, is intended to bring finality to tax liabilities, and any attempt to modify these liabilities through rectification would undermine the scheme's purpose. This decision is significant for taxpayers who have opted for the VSV scheme, as it assures them of the certainty and stability of the settlement reached under this initiative.