1999 (11) TMI 41

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..... 2) Act, 1998 (for short "the Act"), in respect of the Kar Vivad Samadhan Scheme, 1998 (for short "the KVSS"), before the designated authority on January 6, 1999. This declaration pertained to the tax arrears of Rs. 4,159 on account of interest under section 220(2) of the Income-tax Act, 1961, for the assessment year 1985-86. In the column requiring the details of pendency of appeal/revision/reference/writ on the date of declaration it had been stated that the appeal filed on December 30, 1998, was pending before the Commissioner of Income-tax (Appeals) (Central), Ludhiana. The designated authority vide order dated January 27, 1999, under section 90(1) of the Act determined a sum of Rs. 2,080 as payable towards full and final settlement of....

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....1, has been determined on December 24, 1998. Thus, the reasoning given by the designated authority for rejecting the declaration in the impugned order has to be upheld. The declaration is also not valid on another ground as well. Section 95(i)(c) of the Act clearly provides that the scheme was not applicable to a case where no appeal, reference or writ petition is admitted and pending before the appellate authority or the High Court or the Supreme Court. In the present case, the petitioner claims to have filed an appeal before the Commissioner of Income-tax (Appeals) (Central), Ludhiana, on December 30, 1998, which according to it was pending. This is not a case of an appeal having been admitted. From a perusal of section 246 of the Inco....

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.... not be applicable. Before parting we would like to observe that from the facts emerging from this writ petition, it is clear that the petitioner in connivance with the officials of the Department has got the disputed demand created in order to fall within the purview of the Kar Vivad Samadhan Scheme, 1998. It is interesting to note that the demand for the assessment year 1985-86 had been raised on October 28, 1991 and stood paid by October 15, 1992. No demand for interest under section 220(2) was raised thereafter. It is not understood as to how and under what circumstances the Department woke up after six years on December 24, 1998, to determine the interest payable on payments made in the year, 1992. It is admittedly not the case of a....