https://www.taxtmi.com/caselaws?id=409385 Under the Kar Vivad Samadhan Scheme, 1998, a tax refund from an earlier year could not be appropriated first towards penalty. The Board's clarification dated 03.09.1998 treated refund as a mode of payment of tax and required part-payments to be adjusted first towards tax and then towards interest, which the Court applied to the Scheme. The Scheme's special provisions governed the computation of the amount payable, and the normal rule under Section 140A of the Income-tax Act, 1961 did not control. The refund therefore had to be adjusted against tax arrears first, with the payable amount re-determined accordingly. en-us Thu, 24 Jun 2021 00:00:00 +0530 Wed, 17 Nov 2021 11:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=409385 Under the Kar Vivad Samadhan Scheme, 1998, a tax refund from an earlier year could not be appropriated first towards penalty. The Board's clarification dated 03.09.1998 treated refund as a mode of payment of tax and required part-payments to be adjusted first towards tax and then towards interest, which the Court applied to the Scheme. The Scheme's special provisions governed the computation of the amount payable, and the normal rule under Section 140A of the Income-tax Act, 1961 did not control. The refund therefore had to be adjusted against tax arrears first, with the payable amount re-determined accordingly. Case-Laws Income Tax Thu, 24 Jun 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=409385