9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2002 (4) TMI 18 - HC - Income TaxKVSS - This is a petition for quashing order passed by the Commissioner of Income-tax treating the declaration filed by the petitioner under section 89 of the Finance (No. 2) Act, 1998, as non est. The other prayer made in the partition is for issuance of a direction to allow the petitioner benefit under the Kar Vivad Samadhan Scheme - petitioner s plea was rejected on the ground that there were no determined and payable tax arrears on the date of declaration. In our opinion, the impugned order does not suffer from any legal infirmity which may justify interference by this court because the petitioner has failed to produce any material before the court to show that the amount of interest which was deter mined by the competent authority vide order dated January 29, 1990, had remained unpaid on the date of declaration. During the course of hearing, Shri R. P. Sawhney produced the record of the Department to show that the amount of tax and interest had been paid by the petitioner on December 29, 1990. Therefore, it cannot be said that the petitioner was in arrears of tax as on the date of declaration. Thus, we do not find any merit in the argument that respondent No. 1 had erred in refusing to accept the declaration filed by the petitioner.
Issues Involved:
1. Validity of the order treating the declaration under section 89 of the Finance (No. 2) Act, 1998, as non est. 2. Entitlement to benefit under the Kar Vivad Samadhan Scheme (KVSS) for the assessment year 1989-90. Issue-wise Detailed Analysis: 1. Validity of the order treating the declaration as non est: The petitioner, a partnership firm engaged in the wholesale scrap material business, filed a return for the assessment year 1989-90. The Assessing Officer assessed the income higher than declared and created a demand for tax and interest, which the petitioner paid in December 1990. Eight years later, the petitioner filed a declaration under the KVSS, which was rejected by the Commissioner of Income-tax (respondent No. 1) as non est. The petitioner argued that a small amount of interest was still payable, thus making the declaration valid. However, respondent No. 1 asserted that since all tax arrears were paid by December 29, 1990, no arrears were outstanding on the date of the declaration, thus making the declaration invalid. The court upheld the impugned order, stating that the petitioner failed to show any unpaid tax arrears on the date of declaration, making the declaration invalid. 2. Entitlement to benefit under the Kar Vivad Samadhan Scheme (KVSS) for the assessment year 1989-90: The petitioner argued that the declaration should be covered under the KVSS as it and its partners filed a common declaration. The court examined sections 87(f), 87(m), and 88 of the Finance (No. 2) Act, 1998, which define "disputed tax" and "tax arrear" and outline the settlement of tax payable under the KVSS. The court noted that for availing of the benefit under the KVSS, the tax arrears must have been determined before March 31, 1998, and remain unpaid on the date of declaration. The court referred to the decision in Biru Mal Gauri Shankar Jain and Co. v. CIT, which held that a person must fulfill the basic prerequisites of the KVSS to claim its benefit. Since the petitioner had paid all tax and interest by December 1990, no arrears were outstanding on the date of declaration, making it ineligible for the KVSS benefit. The court dismissed the petition, finding no merit in the argument that respondent No. 1 erred in rejecting the declaration. Conclusion: The court dismissed the writ petition, upholding the order that treated the declaration as non est and denying the petitioner the benefit under the KVSS for the assessment year 1989-90, due to the absence of unpaid tax arrears on the date of declaration.
|
