Kar Vivad Samadhan Scheme acceptance bars further adjudication of connected appeals on merits.

Acceptance of a declaration under the Kar Vivad Samadhan Scheme, 1998 brought the dispute for the relevant assessment year within the scheme's final settlement mechanism. Once the declaration was accepted and the assessee's appeal was withdrawn, the connected controversy could not be pursued further on merits. The Tribunal's decision to entertain the Revenue's appeal and remand the matter ignored the statutory bar flowing from the scheme and was not justified.

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Issues: Whether, after the assessee's declaration under the Kar Vivad Samadhan Scheme, 1998 had been accepted by the designated authority and the appeal had been allowed to be withdrawn, the Tribunal could nevertheless decide the Revenue's appeal on merits and remand the matter.

Analysis: Once the declaration under the scheme was accepted, Section 90(4) operated to bring the dispute for that assessment year within the scheme's final settlement mechanism. The consequence was that the assessee's appeal could not continue, and the connected controversy for the same assessment year could not be proceeded with on merits. The Tribunal's decision to entertain the Revenue's appeal and remand the matter ignored the effect of the accepted declaration and the statutory bar flowing from the scheme.

Conclusion: The Tribunal was not justified in deciding the Revenue's appeal on merits or remanding the matter. The impugned order was liable to be set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Acceptance of a declaration under the Kar Vivad Samadhan Scheme, 1998 conclusively settles the dispute for the relevant assessment year and prevents further adjudication of the connected appeals on merits.

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