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TMI Blog1999 (5) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ards interest. In pursuance of the representation the petitioner was informed that the Scheme of 1998 is different from section 140A of the Income-tax Act. Learned counsel for the petitioner submitted that, the Finance Minister in his Budget Speech, while explaining the objectives of the Kar Vivad Samadhan Scheme, observed: "I, therefore, propose to introduce a new scheme called the "SAMADHAN". The scheme would apply to both direct or indirect taxes and offer waiver of interest, penalty, and immunity from prosecution on payment of arrears of direct taxes at the current rates." It is submitted that, due regard has to be given to the Budget Speech, as was observed by the Calcutta High Court in CIT v. Birla Education Trust [1985] 153 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or concessional rates of tax for the purpose of encouraging an industrial activity, a liberal construction should be put upon the language of the statute. It is also stated that the interpretation has to be taken in favour of the assessee, if there is any ambiguity. It is stated that, in the clarifications issued by the Central Board of Direct Taxes, dated September 3, 1998, a question was raised to the effect that : "Where the tax arrear comprises tax and interest, how will the part payment be first appropriated---towards tax or interest ?" The answer to the question was given that part payments are appropriated first towards tax and then towards interest. It is also submitted that, power has been given under section 96 of the Kar Viva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act, 1961 (43 of 1961) ; (i) in the case of a declarant, being a company or a firm, at the rate of thirty five per cent. of the disputed income ; (ii) in the case of a declarant, being a person other than a company or a firm, at the rate of thirty per cent. of the disputed income ; (iii) in the case where tax arrear includes income-tax, interest payable or penalty levied, at the rate of thirty-five per cent. of the disputed 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; (v) where the tax arrear includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e adjustment of the amount paid under section 140A towards tax, the arguments raised by learned counsel for the petitioner cannot be accepted. Question No. 4 of the clarification dated September 3, 1998, also does not help the petitioner's case, because, it refers to the payments which are made after the tax arrears are computed and thereafter any part payment is made. The clarification given by the Government dated January 18, 1999, has only used the words "the Scheme is different from section 140A." This also does not help the petitioner, for, it is nowhere stated in this clarification that the amount paid under section 140A has to be adjusted towards tax. The amount has been paid admittedly under section 140A and the Explanation to secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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