Kar Vivad Samadhan Scheme declaration not false, so rejection of the certificate was quashed and Form 4 issued.

A declaration under the Kar Vivad Samadhan Scheme, 1998 could be reopened only on the ground of a false declaration, because a certificate issued under section 90(1) of the Finance (No. 2) Act, 1998 is conclusive as to the matters stated in it. The declaration here related to a pending writ petition challenging Explanation (aa) to section 80HHC and the restraint against reopening assessments for the relevant years. On the record, the declaration was not false, so rejection of the certificate was unsustainable and the assessee was entitled to Form 4 under rule 5(b).

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Issues: Whether the declaration made under the Kar Vivad Samadhan Scheme, 1998 was false so as to justify rejection of the certificate and whether the assessee was entitled to issuance of Form 4 certificate.

Analysis: The declaration was made in respect of a pending writ petition concerning the challenge to Explanation (aa) to section 80HHC and the consequential restraint against reopening assessments for the relevant years. A certificate issued under section 90(1) of the Finance (No. 2) Act, 1998 is conclusive as to the matters stated therein and cannot be reopened except on the ground of false declaration. On the record, the declaration could not be treated as false, and the rejection order was therefore unsustainable.

Conclusion: The rejection of the certificate was quashed and the assessee was held entitled to the certificate in Form 4 under rule 5(b) of the Kar Vivad Samadhan Scheme, 1998.

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