2024 (1) TMI 1498

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.... Solicitor General of India appearing for respondent No.2. Perused the entire record. 2. The present writ petition has been filed assailing the order passed by the Commissioner of Income Tax, Hyderabad under Section 264 of the Income Tax Act, 1961 (for short, the 'Act') vide F.No.Hyd./CIT-V/264/5/03-04, decided on 21.10.2003. 3. The present writ petition was immediately filed assailing the said order and there is an interim order in the operation in favour of the petitioner since then. 4. The issue involved in the present writ petition is whether the assessee who has settled the dispute with the respondents under the Kar Vivad Samadhan Scheme, 1998 (for short, 'KVSS') in the matter covered under section 143(1)(a) of the Act, would ....

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.... material provisions of KVSS 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 arrear" means - (1) in relation to direct tax enactment, the amount of tax penalty or interest determined on or before the 31st day of Mach, 1998 under that enactment in respect of an assessment year as mod....

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....ion (3) of Section 90, nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any assessment or proceedings other than those in relation to which the declaration has been made." 9. The Scheme of the KVSS is to cut short litigations pertaining to taxes which were frittering away the energy of the Revenue Department and to encourage litigants to come forward and pay up a reasonable amount of tax payable in accordance with the Scheme after declaration thereunder. 19. As far as the provisions of KVSS are concerned, we agree with the contention of the learned Senior Counsel for the assessee that the order to be made by the Designated Authority under Section 90 i....