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TMI Blog2009 (2) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... . BHAVADASAN J. K. I. Mayankutty Mather and Sunil Shankar for the appellants. P. K. R. Menon, George K. George and Jose J. for the respondents. JUDGMENT J. B. KOSHY, ACTG. C. J. - The predecessor in interest of the appellants was as an assessee of the income-tax. He was doing the business of import and export of cashew. The assessment of income-tax for the assessment years 1990-91, 1991-92 and 1993-94 was completed and arrears with interest were due for payment. While demands were pending, the Central Government introduced a scheme called the "Kar Vivad Samadhan Scheme, 1998" by the Finance (No. 2) Act of 1998 with a view to provide a chance to the assessee to pay off the arrears at a compounded rate with substantial conces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttled, no further demands can be made and also relied on the decision of the Supreme Court in Smt. Sushila Rani v. CIT [2002] 253 ITR 775. It is further contended that if it is reopened, the entire matter should be reopened under the Kar Vivad Samadhan Scheme. In this connection, we refer to section 90 of the Finance (No. 2) Act, 1998 (exhibit P1), which reads as follows: "90. Time and manner of payment of tax arrear. - (1) Within sixty days from the date of receipt of the declaration under section 88, the designated authority shall, by order, determine the amount payable by the declarant in accordance with the provisions of this Scheme and grant a certificate in such form as may be prescribed to the declarant setting forth therein th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment can proceed with the assessment. Here, admittedly, the petitioner did not include the interest. Therefore, instead of making full assessment rejecting declaration in toto, the second proviso to section 90 of the Finance (No. 2) Act, 1998, was used and only the amended certificate was issued for the reasons stated. In fact, what was done was that the petitioner though given the benefit of the Kar Vivad Samadhan Scheme corrected the settlement amount by including interest which ought to have been included by the petitioner in the declaration. The mistake happened due to the wrong declaration filed by the petitioner. But, the learned judge found that for 1993-94, the amount has to be corrected in terms of the Kar Vivad Samadhan Scheme t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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