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TMI Blog2003 (2) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax Act commencing from 30 days after February 23, 1999, until the date of payment. It is made clear that in computing the interest statutory modifications if any of section 220 of the Income-tax Act shall be taken into consideration. Such payment is to be made within 30 days from the date hereof. - - - - - Dated:- 3-2-2003 - Judge(s) : GIRISH CHANDRA GUPTA. JUDGMENT GIRISH CHANDRA GUPTA J.--The subject matter of challenge in this writ petition is the determination of amount payable by the petitioner under the Kar Vivad Samadhan Scheme, 1998, and a clarification dated January 5, 1999, issued by the member (Legislation) of the Central Board of Direct Taxes. The facts and circumstances of the case are as follows: For a number of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted income for the persons referred to in clause (i) or thirty per cent. of the disputed income for the persons referred to in clause (ii); (iv) in the case where tax arrear comprises only interest payable or penalty levied, at the rate of fifty per cent. of the tax arrear." It is not disputed that the time for making declaration was extended from time to time after December 31, 1998. During the extended period the petitioner made a declaration in respect of each of the aforesaid assessment years proposing to pay 50 per cent. of the penalty in accordance with section 88(a)(iv) of the aforesaid Scheme set out hereinabove. In pursuance of the aforesaid declaration the Department determined the sum payable by the petitioner by its order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of interest was an act without jurisdiction in excess of the authority and is bad and is liable to be set aside. Mr. Mullick, the learned senior advocate appearing for the Department, submitted that the question has become academic because the Scheme is no longer in force. The petitioner has admittedly not paid even the amount which according to the petitioner is payable according to the Scheme and therefore the question of the petitioner now being able to avail itself of the benefit of the aforesaid Scheme does not arise. This court was unable to accept the submission of Mr. Mullick in its entirety for the simple reason that it was not open to the Department to refuse the benefit of the Scheme to the petitioner by adding interest if th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctment and provides that "the amount pay able under this Scheme by the declarant shall be determined at the rates specified hereunder" and "in the case where tax arrear comprises only interest payable or penalty levied", the amount payable is 50 per cent. thereof. This goes to show that the scheme does not oblige the declarant to pay any amount on account of interest. The fact that interest is not intended to be paid would also be evident from the provision contained in clause (iii) set out hereinabove. It would appear that even in case where the tax arrear includes income-tax, penalty and interest the amount payable is the specified percentage of the disputed income in spite of the fact that the determination earlier made obliges the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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