Quick Summary: Sharen Nitin Naik wins her case against the Principal Commissioner of Income Tax, Panaji, after being denied the benefits of the Vivad Se Vishwas Scheme. The court ruled in her favor on January 28, 2026.
On March 17, 2021, Sharen Nitin Naik's application under the Vivad Se Vishwas Scheme was turned down by the Principal Commissioner of Income Tax, Panaji. The reason? She hadn't filed a challenge against a tax assessment from December 30, 2016. But Sharen argued that it was unfair since her husband's challenge covered both their incomes.
"The decision is factually wrong and goes against the rules of the scheme itself."
Sharen and her husband, who follow the Portuguese Civil Code in Goa, filed their tax returns on March 15, 2014. A check of her husband’s business led to reopening their tax assessments. While her husband challenged the assessment and penalty orders, Sharen only challenged the penalty.
Sharen's husband successfully applied for the benefits of the Vivad Se Vishwas Scheme. His application was accepted, leading to the dismissal of his challenges. Meanwhile, Sharen's application was rejected, even though both were assessed under the same order.
The court, led by Judges Suman Shyam and Amit S. Jamsandekar, ruled that Sharen's rejection was unfair. They noted that the income was considered one unit under Section 5A, and if her husband received the scheme's benefits, she should too.
"The department cannot divide a single shared income issue into two for settlement purposes."
The court overturned the rejection order and told the Principal Commissioner to reconsider Sharen's application under the scheme. They emphasized that Sharen met the requirements due to her pending penalty challenge.
The court decided that Sharen's rejection was not justified and instructed the tax department to review her application again, acknowledging that she qualified for the scheme because of her ongoing penalty challenge.
