1998 (12) TMI 65

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.... wholly owned corporation of the State of U. P. which now seems to be in the red and is facing closure. For the assessment years 1991-92, 1993-94 and 1994-95 to which this petition relates, the liability of the petitioner was to pay income-tax to the tune of about Rs. 3,20,36,286 after adjusting the tax already paid by way of advance tax, deductions at source (TDS), adjustments and refund, etc. Th....

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.... 1998. Under the Finance (No. 2) Act, 1998, under section 86 and onwards the scheme known as the Kar Vivad Samadhan Scheme, 1998, was introduced which shall be in operation from September 1, 1998, to December 31, 1998, which provides some relief to those assessees who are in tax arrears. Now this writ petition has been preferred mainly for two reliefs ; firstly, it has been prayed that the Income-....

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....d, therefore, this relief cannot be granted. So far as the second relief that the Income-tax Department be directed to treat the petitioner as a defaulter for the purpose of availing of the benefit of the Kar Vivad Samadhan Scheme, 1998, is concerned, under section 87(m) "tax arrear" has been defined as follows : "(m) 'tax arrear' means,--- (i) in relation to direct tax enactment, the amount....

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....rear under this sub-clause." According to learned counsel for the petitioner (sic-respondent), the petitioner cannot avail of the benefit of this scheme because the Income-tax Department has realized the tax amount and no amount of tax can be said to be due as arrear on September 1, 1998, when the Kar Vivad Samadhan Scheme, 1998, came into operation because tax amount was actually received by t....