- (1.)C.M.No. 22770/2020 1. The application has been listed before this Bench by the Registry in view of the urgency expressed therein. The same has been heard by way of video conferencing.
(2.)Present application has been filed by the petitioner seeking permission to withdraw the present writ petition with liberty to approach this Court in the event the respondents fail to drop the re-assessment proceedings initiated against Wand Group and the proceedings under Sections 201(1) and 201(1A) of the Income tax Act, 1961 (hereinafter referred to as the 'Act') against the SeedWorks Singapore or act in any manner contrary to the assurances/clarifications issued by respondent no.3.
(3.)The alleged clarification/assurance given by respondent no.3 is stated to be contained in the letter dated 01st July, 2020 issued by the Joint Commissioner of Income Tax (OSD). The relevant portion of the said letter reads as under:- "2. In this regard it is clarified that since the proceedings before DRP are still pending in the case of the company, the assessee is eligible for availing itself of the benefits of Vivad se Vishwas Scheme. If, the company settles its dispute under the VSV Scheme and pays the taxes, proceedings u/s. 148 initiated against M/s. Wand Equity Portfolio II LP and M/s. Wand Affiliates Fund LP (WAND GROUP) shall be dropped since all the proceedings pertain to the same transaction and income from the transaction should be taxed only once. Further, since the re-assessment notices were issued to protect the interest of Revenue and as per FAQ No 35, once taxes are paid by the principal tax payer, appropriate order shall be passed and issued by the Assessing officer to release the other parties from any action under the income tax act 1961 including the payment of tax, interest and penalty, etc. 3. Since the proceedings u/s. 201(1)/201(1A) of the act initiated against M/s. Seed works Singapore relates to the same transaction, as a corollary, the proceedings u/s. 201(1)/201(1A) of the act shall be dropped, considering that the company has paid the requisite taxes under the Vivad se Vishwas scheme. Accordingly no further action shall be taken against M/s. Seedworks Singapore under the IT Act, 1961 and the order shall be issued to M/s Seedworks, Singapore dropping the proceedings.