Kar Vivad Samadhan Scheme settlement led to recall of earlier order after omitted tax-payment facts showed a record mistake.

Income already disclosed and settled under the Kar Vivad Samadhan Scheme, 1998 was treated as having been paid through the scheme certificate under section 91 of the Finance (No. 2) Act, 1998. Because that material fact had not been placed before the Tribunal earlier, the continuing addition on the same amount amounted to a mistake of fact apparent from the record. The earlier order was recalled and the matter restored so effect could be given to the income covered by the scheme, with the miscellaneous petition allowed in substance in favour of the assessee.

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Issues: Whether the Tribunal's earlier order deserved recall on the ground that the disputed additions had already been covered under the Kar Vivad Samadhan Scheme, 1998, resulting in a mistake apparent from the record.

Analysis: The assessee had already disclosed the income relating to the disputed issues under the scheme and had paid the tax thereunder, as evidenced by the certificate issued under section 91 of the Finance (No. 2) Act, 1998. This material fact had not been brought to the Tribunal's notice earlier. Since the same tax liability ought not to be imposed again on the same amount, the omission constituted a mistake of fact apparent from the record and justified recall of the earlier order.

Conclusion: The earlier order was recalled, and the matter was restored for giving effect to the income disclosed under the Kar Vivad Samadhan Scheme, 1998. The miscellaneous petition was allowed in substance in favour of the assessee.

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