Investigation-stage deposits must be adjusted in Sabka Vishwas discharge statements, regardless of whether recorded as interest or penalty.

Under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, section 124(2) requires that any amount paid during enquiry, investigation or audit be deducted while computing the amount payable in the discharge statement. The deduction is not limited by the head under which the deposit was recorded, so sums shown as interest or penalty during investigation must still be given credit. The declarant was therefore entitled to recalculation of the payable amount after adjustment of the investigation-stage deposits, and the discharge statement could not exclude them.

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Issues: Whether, under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, amounts deposited during investigation towards interest and penalty were required to be adjusted while computing the amount payable in the discharge statement.

Analysis: Section 124(2) of the Finance (No. 2) Act, 2019 makes the relief under the Scheme subject to deduction of any amount paid as pre-deposit at any stage of appellate proceedings or as deposit during enquiry, investigation or audit while issuing the statement indicating the amount payable by the declarant. The expression 'any amount paid' is broad and does not confine the deduction to amounts paid under a particular head. The statutory mandate requires adjustment of deposits made during investigation, irrespective of whether they were described as tax, interest or penalty. A deposit made during investigation therefore cannot be ignored merely because it was shown under the heads of interest or penalty.

Conclusion: The amounts deposited by the declarant during investigation towards interest and penalty were required to be adjusted, and the impugned discharge statement could not exclude them.

Final Conclusion: The declarant was entitled to recalculation of the payable amount after giving credit for the investigation-stage deposits, and the matter required fresh consideration in accordance with the statutory scheme.

Ratio Decidendi: Under Section 124(2) of the Finance (No. 2) Act, 2019, any amount deposited during enquiry, investigation or audit must be deducted while computing the amount payable under the Scheme, regardless of the head under which the deposit was made.

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