Amnesty Scheme credit clarification allows earlier scheme payments to count toward tax arrears, excluding penalty and interest amounts.

The 2019 Amnesty Scheme, as clarified by Circular No. 3/2019 dated 01.04.2019, allowed assessees who had earlier opted for the 2018 Amnesty Scheme but had not fully settled their arrears to opt for the 2019 Scheme. Amounts paid under earlier amnesty schemes were to be credited towards tax under the 2019 Scheme, but sums paid specifically towards penalty or interest were excluded from such credit. While considering applications under the 2019 Scheme, the Assessing Officer was required to apply this clarification and grant credit only for eligible amounts paid earlier.

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Issues: Whether amounts paid under the earlier Amnesty Scheme of 2018 could be treated as payments under the Amnesty Scheme of 2019 and credited towards tax arrears, and whether assessees who had earlier opted for amnesty but had not settled the arrears could avail the 2019 Scheme.

Analysis: The 2019 Amnesty Scheme, as clarified by Circular No. 3/2019 dated 01.04.2019, contemplated that assessees who had earlier opted for an amnesty scheme but could not settle the arrears could opt for the 2019 Scheme. The clarification also stated that amounts paid under earlier schemes would be given credit towards tax under the 2019 Scheme. The only exclusion was amounts paid towards penalty or interest, which were not to be credited towards tax.

Conclusion: The petitioners were permitted to withdraw the writ petitions, and it was clarified that, while considering applications under the 2019 Amnesty Scheme, the Assessing Officer must take note of the above clarification and grant credit towards tax for eligible amounts paid under the earlier scheme.

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