TaxTMI 
TaxTMI 
2007 (2) TMI 201
X X X X Extracts X X X X
X X X X Extracts X X X X
....c limited company. For the assessment year 1995-96, the Assessing Officer had set off the unabsorbed depreciation and investment allowance carried forward while computing the relief under section 80HH of the Income-tax Act, 1961. With regard to that, an appeal was pending before the Appellate Tribunal. In the meanwhile, the petitioner opted to avail of the Kar Vivad Samadhan Scheme and ultimately, paid the amount determined by the Department. However, the Assessing Officer issued notice under section 148 of the Income-tax Act to reopen the assessment and ultimately, withdrew the relief granted under section 80HH of the Act by the impugned order dated March 27, 2003. Under section 90(3) of the Kar Vivad Samadhan Scheme (Finance (No. 2)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Act to which the petitioner is not entitled, as the deduction under section 80HH of the Act is allowable only for 10 years and the tenth year in the case of the petitioner happened to be the assessment year 1994-95. The immunity conferred by the Kar Vivad Samadhan Scheme is applicable to the issues which have directly resulted in the tax demanded. The petitioner availed of the Kar Vivad Samadhan Scheme only with regard to tax arrears arising by setting off of brought forward loss first and later allowing deduction under section 80HH of the Act. But, it has nothing to do with the very eligibility of claim of deduction under section 80HH of the Act. What is questioned in the reassessment proceedings is the very eligibility of deduction ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e been revived: Provided further that the designated authority may amend the certificate for reasons to be recorded in writing. (2) The declarant shall pay the sum determined by the designated authority within thirty days of the passing of an order by the designated authority and intimate the fact of such payment to the designated authority along with proof thereof and the designated authority shall thereupon issue the certificate to the declarant. (3) Every order passed under sub-section (1), determining the sum payable under this Scheme, shall be conclusive as to the matters stated therein and no matter covered by such order shall be reopened in any other proceeding under the direct tax enactment or indirect tax enactment or unde....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ad Samadhan Scheme, there is no jurisdiction for the Assessing Officer to reopen the assessment by a notice under section 143 of the Act except where the case falls under the proviso (2) of sub-section (1) of section 90 as it is found that any material particular furnished in the declaration is found to be false." In the present case, the reopening of assessment was made to decide the question of eligibility of the petitioner for deduction under section 80HH of the Act, which material was not available before the designated authority while granting certificate under section 90(1) of the Finance (No.2) Act, 1998. While availing of the benefit of the Kar Vivad Samadhan Scheme, the petitioner had not made any declaration as to its eligibili....