TaxTMI 
TaxTMI 
TaxTMI 
2002 (11) TMI 5
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....mber 25, 1998, confirmed the order of the Assessing Officer in respect of the following items: (a) Premium amount of Rs. 3,57,153; (b) Depreciation to the extent of Rs. 2,13,000 (c) Interest of Rs. 27,14,000 (Totalling Rs. 32,84,153). With regard to four items/heads the appellate authority set aside the order of the assessment and remitted the matter back to the assessing authority with the direction to recompute/reassess after giving an opportunity of hearing to the assessee. The four items/heads remitted to the Assessing Officer were: "(a) Whether receipt of Rs. 27,93,977 represented income from house property or whether it represented business income? (b) Claim for bad debt of Rs. 68,02,046. (c) Determination of capital gains to the extent of Rs. 4,00,000. (d) Disallowance under rule 6D to the extent of Rs. 31,963." Being aggrieved by the decision of the Commissioner of Income-tax (Appeals), the assessee carried an appeal before the Income-tax Tribunal in respect of premium, depreciation and interest, which together represented an amount of Rs. 32,84,153. Pursuant to the order of the Commissioner of Income-tax (Appeals),....
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.... Court under article 226 to quash the impugned notice and further proceedings consequent thereto. The High Court by its judgment dated December 4, 2000, dismissed the writ petition. Hence this appeal. A look at the material provisions of the Kar Vivad Samadhan Scheme is necessary to appreciate the contentions urged. "87. In this Scheme, unless the context otherwise requires, (e) 'disputed income', in relation to an assessment year, means the whole or so much of the total income as is relatable to the disputed tax (f) 'disputed tax' means the total tax determined and payable, in respect of an assessment year under any direct tax enactment but which remains unpaid as on the date of making the declaration under section 88; ... (m) 'tax arrears' means, (i) in relation to direct tax enactment, the amount of tax, penalty or interest determined on or before the 31st day of March, 1998, under that enactment in respect of an assessment year as modified in consequence of giving effect to an appellate order but remaining unpaid on the date of declaration;...." "88. Subject to the provisions of this Scheme, where any person makes, on or after the 1st day of September, 1998, but on or....
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.... about certain legal consequences under the Kar Vivad Samadhan Scheme. It was not open to the income-tax authorities to put back the clock by going back thereupon. The order of the designated authority is conclusive on all items/heads, which go into the computation of the total income of the assessee and not confined only to the heads of income in respect of which an appeal or reference may be pending. Counsel for the Revenue, however, emphasised that the expression "determined and payable" used in section 87 gives a clue to understanding the section. He contended that, in the case of the present appellant, the giving effect order made by the Commissioner of Income-tax (Appeals) had not been fully worked out by the Assessing Officer as income under the four heads, (a) i.e., disallowance of bad debts to the extent of Rs. 68,02,046; (b) income from house property to the extent of Rs. 27,93,977; (c) dispute regarding capital gains to the extent of Rs. 4,00,000; and (d) disallowance under rule 6D amounting to Rs. 31,963 had not been finally computed by the assessing authority after the findings of the assessing authority on these four heads were set aside by the Commissioner of Incom....
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....bsp; 15,49,724 Totalling 2,00,81,732 He again deducts therefrom the reliefs which had been allowed by the Commissioner of Income-tax (Appeals) on account of following: Rs. 1. Interest disallowance (page 14) (70,50,000 - 27,14,756) 43,35,244 2. Disallowance under rule 6B 1,25,279 3. Foreign travel expenses 53,740 4. Depreciation allowed on motor car, fan and furniture 67,746 Totalling 45,82,009 Finally, he further deducts the relief allowed on account of set aside issues: Rs. Bad debt (page 10) 68,02,046 Income from property 29,52,492 Treated as business income 27,93,977 Income from other sources 1,73,18,438 After making these calculations, he arrived at the revised income Rs. 33,65,298. Finally, he appends a note on the foot of the order saying, "the following points are set aside by the Commissioner of Income-tax (Appeals) to be done afresh after giving an opportunity to the assessee of being heard" and indicates the four major heads. A careful scrutiny of this order suggests that, even while giving effect to the Commissioner of Income-tax (Appeals)' order, the Assessing Officer has taken into account the bad debt amounting to Rs. 68,02,....