Strict compliance with amnesty conditions denied relief where reduced tax was not paid within the statutory deadline.

Amnesty under section 23B required strict compliance with the mandatory condition of paying the reduced tax within the prescribed time, and failure to do so defeated entitlement to the scheme. The existence of a pending rectification application did not relax that statutory deadline. The provision also preserved the assessee's ability to pursue assessment or demand disputes separately through appeal, revision, or rectification, with any tax paid under the amnesty scheme being recoverable by refund where applicable. On these facts, the assessee could not claim amnesty benefit, and the direction to consider such benefit was set aside.

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Issues: Whether the assessee was entitled to amnesty benefit for settlement of arrears of tax despite not remitting the reduced tax within the time prescribed under the statute.

Analysis: The entitlement to amnesty under section 23B depended on compliance with the mandatory condition that the reduced amount be paid within the strict statutory time-frame. The provision also contemplated that where there was a dispute regarding assessment or demand by way of appeal, revision, or rectification, the assessee could pursue that dispute separately and, if necessary, claim refund of tax paid under the amnesty scheme. The pendency of a rectification application did not dispense with the requirement of timely payment under the scheme.

Conclusion: The assessee was not entitled to amnesty benefit, and the direction to consider grant of such benefit was set aside.

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