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Issues involved: Interpretation of Section 90 of the Kar Vivad Samadhan Scheme, 1998 regarding the time and manner of payment of tax arrears, and whether delay in payment can be condoned.
Summary: The petitioner, an assessee assessed to income tax, sought to avail of the Kar Vivad Samadhan Scheme, 1998, which required payment within 30 days of communication of the amount due. The petitioner was informed of a liability of Rs.2,18,451 on December 10, 1998, with a payment deadline of January 9, 1999. Due to confusion, the petitioner made the payment on January 11, 1999, which was rejected by the respondent for being late. The petitioner argued for a liberal interpretation of the scheme, citing judgments from various High Courts allowing for condonation of delays in similar schemes. The respondent contended that the scheme's provisions were clear and did not allow for any delay in payment. The court considered the objectives of the scheme, noting that it aimed to benefit both the assessee and the revenue. It interpreted the word "shall" in the scheme as not being inflexible, allowing for genuine explanations for delays. The court found the petitioner's explanation for the delay reasonable and quashed the rejection order, directing the issuance of a clearance certificate under the scheme. In conclusion, the court ruled in favor of the petitioner, emphasizing the need for a flexible interpretation of the scheme to accommodate genuine difficulties faced by assessees.
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