Prior tax determination before the cutoff date qualified for settlement relief despite later appellate remand under the scheme.

A tax liability determined on or before 31 March 1998 satisfied section 87(m) of the Kar Vivad Samadhan Scheme, even though the assessment was later set aside in appeal and the matter was remanded for redetermination. The prior determination did not cease to exist merely because appellate proceedings were pending or the redetermination had not become final. The scheme was treated as a settlement mechanism intended to end tax litigation, so relief could not be denied solely because the original assessment was later reopened on remand. The assessee was therefore entitled to the Scheme's benefit, and the Revenue's refusal was unsustainable.

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Issues: Whether the assessee was entitled to the benefit of the Kar Vivad Samadhan Scheme when tax had been determined in an assessment order before 31 March 1998, although that determination was later set aside in appeal and the matter was remanded for redetermination.

Analysis: The relevant requirement under section 87(m) of the Kar Vivad Samadhan Scheme was that tax should have been determined on or before 31 March 1998. A prior determination does not cease to exist merely because appellate proceedings later result in remand and the redetermination remains pending. The scheme is intended to resolve tax disputes and bring litigation to an end, and its benefit cannot be denied on the ground that the original determination was not yet final when the scheme was invoked. The subsequent remand proceedings were treated as a continuation of the earlier assessment, and the existence of a prior determination was sufficient for the scheme.

Conclusion: The assessee was entitled to the benefit of the Scheme; the refusal by the Revenue was unsustainable.

Final Conclusion: Prior determination of tax before the cutoff date satisfied the statutory condition, and later appellate remand did not deprive the assessee of relief under the Scheme.

Ratio Decidendi: For the Kar Vivad Samadhan Scheme, a tax liability determined on or before the cutoff date remains a qualifying determination even if the assessment is later set aside in appeal and redetermination is pending.

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