Pending revision on interest computation can satisfy Kar Vivad Samadhan Scheme eligibility under income-tax law
A revision petition under section 264 of the Income-tax Act was treated as pending for Kar Vivad Samadhan Scheme eligibility because it challenged the correctness of interest computation, not merely waiver of interest. The Commissioner's revisional power extends to errors in assessment-related interest calculation where the grievance concerns the legality or correctness of the subordinate order. On that basis, the pending revision satisfied the Scheme's statutory condition, and the declaration could not be rejected on the premise that no valid revision was pending. The declaration was therefore maintainable for the limited interest-dispute issue.
Issues: Whether a revision petition filed under section 264 of the Income-tax Act, 1961, and pending before the Commissioner on the date of declaration could be treated as a pending revision for the purposes of the Kar Vivad Samadhan Scheme, 1998.
Analysis: The revision petition complained not only of waiver of interest but also of incorrect calculation of interest. Section 264 empowers the Commissioner to revise orders of subordinate authorities and to pass appropriate orders where the grievance concerns legality or correctness of the order, including errors in interest computation. On that basis, the revision was maintainable to the extent of the interest calculation dispute and was pending when the declaration was filed. Once such a revision was pending, the condition in section 95(i)(c) of the Scheme was satisfied, and the designated authority could not reject the declaration on the footing that no valid revision was pending. The refusal to entertain the declaration was therefore unsustainable.
Conclusion: The revision petition was a valid pending revision for the limited purpose of the interest calculation dispute, and the declaration under the Scheme was rightly held to be maintainable.
Ratio Decidendi: A revision petition under section 264 of the Income-tax Act, 1961 is maintainable where it raises a legitimate grievance as to the correctness of an assessment-related interest computation, and such a pending revision satisfies the statutory condition for invoking the Kar Vivad Samadhan Scheme, 1998.
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