Amnesty scheme credit is confined to outstanding arrears; finally settled liabilities cannot be reopened or recredited for later settlement.

The Kerala High Court article explains that under Section 23B of the Kerala Finance Act, 2020, the amnesty scheme applies only to arrears that remain outstanding on the date the option is exercised. Liabilities relating to earlier assessment years that had already been settled and attained finality under a prior amnesty scheme cannot be reopened, reworked, or treated as available credit for the later scheme. The credit mechanism in Section 23B(8) operates only against subsisting arrears and does not permit revival of closed liabilities or carry-forward of payments made towards finally settled years. On that basis, the assessing authority's refusal to grant fresh adjustment was upheld.

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Issues: Whether liabilities already settled under the earlier amnesty scheme could be reopened or reckoned again while seeking benefit under the 2020 amnesty scheme, and whether the assessing authority erred in refusing to treat earlier payments as available credit for the later scheme.

Analysis: The Scheme under Section 23B of the Kerala Finance Act, 2020 applies only to arrears that remain pending on the date of exercise of option. Amounts relating to earlier assessment years which had already been settled and attained finality under the earlier scheme could not be reopened or reworked for the purpose of the later scheme. The credit mechanism in Section 23B(8) operates only in respect of remittances towards arrears subsisting on the relevant date, and does not permit the assessee to revive closed liabilities or to carry forward payments made towards finally settled years into a fresh settlement exercise. The impugned order therefore suffered from no jurisdictional or legal error.

Conclusion: The challenge to the impugned order was rejected, and the assessing authority's view was upheld.

Final Conclusion: Only the liabilities actually outstanding on the date of the 2020 scheme could be reckoned for settlement, and earlier concluded liabilities could not be reopened for fresh credit or adjustment.

Ratio Decidendi: An amnesty scheme for arrears can be applied only to liabilities subsisting on the date of the option, and payments relating to liabilities already settled with finality cannot be revived or recredited for a subsequent settlement.

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