Kar Vivad Samadhan Scheme computation must include claimed set-off before issuing the final certificate.

The petition against the certificate of intimation under Section 90(1) of the Finance (No. 2) Act, 1998 was founded on an alleged excess computation of the amount payable under the Kar Vivad Samadhan Scheme, 1998. The Court accepted that the petitioner had placed computation details covering income tax, interest under Sections 234A and 234B, and the set-off claimed against tax and interest payments. It therefore directed the authority to recalculate the tax and interest correctly, taking the claimed set-off into account, and to substitute the certificate if the revised computation so required.

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Issues: Whether the amount payable under the Kar Vivad Samadhan Scheme, 1998 was correctly computed and whether the authority should be directed to recompute tax, interest, and admissible set-off.

Analysis: The petition challenged the certificate of intimation issued under Section 90(1) of the Finance (No.2) Act, 1998 on the ground that the amount payable had been worked out in excess. The Court noted that the petitioner had placed computation details covering income tax, interest under Sections 234A and 234B of the Income-tax Act, 1961, and the set-off claimed against tax and interest payments. In these circumstances, the Court found it appropriate to require the respondent authority to undertake a correct calculation of tax and interest, including the petitioner's entitlement to set-off, and to modify the certificate if the recalculation so warranted.

Conclusion: The authority was directed to recompute the tax and interest in accordance with law, after considering the set-off claimed, and to substitute the certificate if necessary.

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