TaxTMI 
TaxTMI 
2000 (12) TMI 41
X X X X Extracts X X X X
X X X X Extracts X X X X
....rate of 35 per cent of the disputed income which worked out to Rs.73,107. The petitioner thereafter made an application dt. 8th April, 1999 (Exh. B) claiming a refund to the tune of Rs.11,64,249 on the ground that the petitioner had already earlier paid the tax on the income derived by the petitioner as a partner of the said firm in respect of asst. yr, 1987-88, for which the declaration under the KVSS was filed by the firm. The claim for refund was subsequently revised to Rs.13,28,207 by the petitioner's letter dt. 13th Oct., 1999 (Exh. F). The application came to be rejected by letter dt. 16th Dec., 1999 (Exn H of the CIT, Swat, on the ground that the petitioner's claim for refund was not permissible in view of the explicit provisions con....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e partners would be considered together and they may pay taxes at the current rate of 35 per cent of the disputed income of the firm. The partners would not be required to pay any further tax on their share of income from the firm. It is also clarified that, where the partners are otherwise eligible under the scheme in respect of any other disputed income, they may Me declaration or such income also along with that of the firm. They have to pay taxes separately at the current rate of 30 per cent, of such other disputed income as provided in the scheme. Those partners who have separately filed declarations already may now file revised declaration along with that of the firm." It is submitted by Mr. Shah that the thrust of the circular is ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the scheme. The firm's income being interconnected with the income of the partner, the latter would also get benefit of the KVSS. 4. On the other hand, Mr. Mihir Joshi, learned counsel for the respondent, has submitted that the scheme was applicable only in respect of "tax arrears" as clearly provided in s. 88 r/w s. 87(m) containing the definition of "tax arrears." It, is further submitted that a bare perusal of the circular makes it clear that when a registered firm along with all its partners files declaration in respect of asst. yr. 1992-93 the arrears of the firm and partners will be considered together and they pay taxes at 35. per cent of the current disputed income of the firm. The circular merely amplifies the provisions of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment years prior to 31st March, 1998, and that in respect of the assessment years in question there were no arrears of tax as far as the petitioner was concerned in his capacity as a partner of the firm. In this view of the matter, it cannot be said that the petitioner is entitled to claim any refund of tax already paid by him prior to 31st March, 1998. It is very much clear from the provisions of the scheme that the scheme was enacted to recover tax arrears by giving opportunity to the assessees by or against whom the disputes for tax liability were pending before the, concerned taxing authority or the Tribunal or the Court. Admittedly no proceedings were pending between the petitioner and the Department in respect of the assessment years ....