2009 (2) TMI 83 - HC - Income Tax

Wrong computation of tax - KAR VIVAD SAMADHAN SCHEME - petitioner contend that the designated authority has wrongly worked out the figure of amount payable under the said Scheme - petitioner has placed on record details of tax computation inclusive of income tax, interest charged/chargeable u/s 234A & 234B, as also the set-off to which the petitioner is entitled - respondent authority is directed to recompute and recalculate the tax and interest in accordance with law

Summary

Issues:
Challenge to certificate of intimation under Section 90(1) of the Finance (No.2) Act, 1998 for KAR VIVAD SAMADHAN SCHEME, 1998. Calculation of amount payable under the scheme exceeding the petitioner's liability. Recalculation of tax and interest, including entitlement to set-off. Modification of the certificate by the respondent authority. Disposal of the petition.

Analysis:

1. Challenge to Certificate of Intimation: The petitioner sought to quash and set aside Exhibit 'G', the certificate of intimation issued by the respondent authority under Section 90(1) of the Finance (No.2) Act, 1998 regarding the KAR VIVAD SAMADHAN SCHEME, 1998. The contention was that the authority incorrectly calculated the amount payable by the petitioner, exceeding the actual liability under the scheme.

2. Calculation Discrepancy: During the hearing, the petitioner's counsel presented details of tax computation, including income tax and interest charged/chargeable under Sections 234A & 234B of the Income Tax Act, 1961, along with the set-off applicable to the petitioner against tax and interest. The discrepancy in the calculation prompted the court to direct the respondent authority to undertake a correct calculation of tax and interest, taking into account the entitlement to set-off.

3. Recalculation and Recomputation: Without delving into the merits of the dispute between the parties, the court ordered the matter to be sent back to the respondent authority for reevaluation and recalculation of the tax and interest as per the legal provisions. This step was deemed necessary to ensure accurate determination of the amount payable by the petitioner under the scheme.

4. Modification of Certificate: In line with the court's decision, the respondent authority was instructed to adjust the certificate, if required, following the revised calculation of tax and interest. The directive aimed to reflect the corrected figures in the certificate, thereby rectifying the earlier inaccuracies in the computation of the payable amount.

5. Disposal of the Petition: Based on the actions taken and directions provided, the petition was disposed of by the court. The ruling made the rule absolute to the specified extent, with no imposition of costs on either party. The judgment concluded with the resolution of the issues raised regarding the calculation and certification under the KAR VIVAD SAMADHAN SCHEME, 1998.

This comprehensive analysis outlines the key aspects of the judgment, including the challenge to the certificate, recalculations mandated by the court, and the subsequent modification of the certificate by the respondent authority, leading to the final disposal of the petition.