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TMI Blog2008 (10) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing authority for the assessment year 1984-85 in exercise of his powers under section 155 of the Income-tax Act, 1961 ("I. T. Act" for short). The last relief that was sought was to direct the first respondent, viz., the designated authority, to pass fresh orders on the exhibit P4 declaration in accordance with the provisions of the Kar Vivad Samadhan Scheme, 1998, treating the petitioner as an assessee in default of payment of tax as if no adjustment of refund is made towards the demand for the assessment year 1982-83. 2. The late Viswambharan was an assessee under the provisions of the Income-tax Act. He was borne on the files of the second respondent. The assessing authority had completed the assessments for the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , would contend, firstly, that, the orders passed by the designated authority is contrary to the provisions of the Kar Vivad Samadhan Scheme and, secondly, it is contended that the assessing authority was not justified in adjusting the refunds due to the appellant for the assessment year 1984-85 towards the tax arrears for the assessment year 1982-83. 8. In order to resolve the controversy that is canvassed by the assessee's learned counsel before us, the provisions of the Kar Vivad Samadhan Scheme, 1998 ("the Scheme" for short) requires to be noticed. 9. The Scheme has come into existence on 1st September, 1998. The definition clauses contained in section 87 of the Finance (No.2) Act, 1998 ("the Finance Act" for short) would define the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but remaining unpaid by the assessee on the date of declaration. 11. Section 88 of the Finance Act provides for settlement of tax payable. Omitting what is not necessary for the case, we would only refer to sub-clauses (ii), (iii) and (iv) of section 88(a) of the Finance Act. The said sub-clauses read as under [1998] 232 ITR (St.) 31, 82: "(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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x payable by the assessee. 16. Subsequently, the assessing authority has also passed an order, in exercise of his powers under section 155 of the Income- tax Act, dated 24.11.1995. In the said order, the assessing authority has arrived at a conclusion that the assessee is entitled for refund of a sum of Rs.87,232 for the assessment year 1984-85. The assessing authority, after such quantification, has adjusted the refund that is due to the assessee for the assessment year 1984-85 towards the tax payable for the assessment year 1982-83. The said order passed by the assessing authority was communicated to the assessee. Though the appellant has a contention that he had questioned the correctness or otherwise of the adjustment so made by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging the correctness or otherwise of the order making adjustment by the assessing authority was produced in the writ petition as exhibit P7 along with an affidavit dated 6.3.2008, it would appear that the appellant has not taken any steps to get that application disposed of by the concerned authority till this date. That only means, the order passed by the assessing authority has become final. The orders so passed by the assessing authority under section 155 of the Income-tax Act, at best, can be an illegal order or an irregular order, but it cannot be a void order. Further, it cannot be said that the orders passed by the assessing authority is a nullity in the eye of law. 19. In the above view of the matter, in our view, the designated au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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