2000 (11) TMI 12

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..... ncome-tax Rules, 1962, the interest under section 220(2) of the Income-tax Act, 1961, cannot be taken note of for the purpose of determination of the amount payable by the petitioner under the Kar Vivad Samadhan Scheme. - In the case of Rajam Pictures Circuit v. CIT it was held that the levy of interest under section 220(2) of the Income-tax Act is statutory and that no separate order is required. .....

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..... ar Vivad Samadhan Scheme. That rule was in force during the assessment years in question namely, 1971-72 to 1973-74. The Kar Vivad Samadhan Scheme provides opportunity to the assessee to pay all the dues, which had remained unpaid by reason of pending litigation. There is no compulsion on the assessee to avail of the benefit of the scheme. When the matters are being settled finally by extending th .....

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..... r. The fact that the quantification is done under the Kar Vivad Samadhan Scheme makes no difference so far as the liability of the assessee to pay the interest on the unpaid tax is concerned. In the case of Rajam Pictures Circuit v. CIT [2000] 241 ITR 735 (Mad) it was held that the levy of interest under section 220(2) of the Income-tax Act is statutory and that no separate order is required. It .....

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