9911796707
TMI Blog2025 (1) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged short levy of tax/penalty. Despite having full knowledge about it, the respondent entered into OTS. There is no allegation against the petitioner in the show cause notice that petitioner had committed any fraud. After having entered into OTS, it was not open for the respondents to issue the impugned show cause notice. Curtains were finally drawn by the respondents by entering into OTS. If we permit the respondents to undertake aforesaid exercise of issuance of show cause notices even after entering into settlement, the very purpose of such scheme will vanish in thin air. This practice will certainly discourage the tax payers to enter into settlement. The settlement should draw the curtains for all times to come otherwise the very meaning of OTS will pale into insignificance. Conclusion - The finality of settlements under OTS schemes should be respected, and reopening is not permissible without statutory authority or allegations of fraud. The impugned show cause notices cannot sustain judicial scrutiny - Petition allowed. - HONOURABLE SRI JUSTICE SUJOY PAUL AND HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO For the Petitioner Advocate : Aly Ahmed Basith. For the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .08.2022, respondent No. 2 acknowledged the receipt of arrears and recorded settlement vide Annexure P-17. Petitioner s Contentions: 8. Learned counsel for the petitioner submits that the impugned show cause notice dated 31.10.2022 came as bolt from blue to the petitioner whereby respondent No. 1 on the strength of objections raised by Auditor General - Audit, proposed raise in demand to the tune of Rs. 7,58,43,382/-. In turn, the petitioner filed detailed response on merits and also raised objections that after having entered into the OTS, it is no more open to issue show cause notice. The revised show cause notice dated 19.01.2024 was issued by respondent No. 1 revising the tax proposed to the tune of Rs. 2,46,53,240/- in lieu of previous determination of Rs. 7,58,43,382/-. 9. The bone of contention of the learned counsel for the petitioner is that G.O. Ms. No. 45, dated 09.05.2022, (paragraph No. 5 (e) (iii)) makes it clear that application so preferred by the tax payer needs to be scrutinized by a (3) Member Committee consisting of AC(ST) of Circle, DC(ST) and JC(ST) of the Division. A confirmation letter needs to be sent to the applicant by accepting/rejecting/modifying the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmits that this provision nowhere puts any embargo/bar for the Commissioner and other prescribed authorities to undertake the exercise of revision, even if OTS is arrived at. In absence of any such impediment in the statutory provision, merely because the settlement is arrived at, no fault can be found in the show cause notices. Lastly, learned Special Government Pleader, placed reliance on the judgment of the Supreme Court reported in Bijnor Urban Cooperative Bank Limited, Bijnor Vs. Meenal Agarwal (2023) 2 SCC 805, to bolster the submission that no one has a right to claim settlement under OTS scheme. 14. Parties confined their arguments to the extent indicated above. We have bestowed our anxious consideration on rival contentions and perused the record. 15. At the outset, we deem it proper to deal with the objection of learned Special Government Pleader regarding maintainability of petition against the show cause notices. He placed reliance on two judgments of the Supreme Court in Kunisetty Satyanarayana and Coastal Container Transporters Association (both supra). However, a plain reading of both the judgments makes it clear that the Supreme Court made it clear that the correct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der: 19. As far as the provisions of KVSS are concerned, we agree with the contention of the learned Senior Counsel for the assessee that the order to be made by the Designated Authority under Section 90 is a considered order which is intended to be conclusive in respect of tax arrears and sums payable after such determination towards full and final settlement of tax arrears. Once the declarant makes payment of the amount so determined under Section 90, the immunity under Section 91 springs into effect. We are also of the view that upon such declaration being made, tax arrears being determined, paid and certificate issued under the KVSS, there is no jurisdiction for the Assessing Officer to reopen the assessment by a notice under Section 143 of the Act except where the case falls under the provisio (2) of sub-section (1) of Section 90 as it is found that any material particular furnished in the declaration is found to be false. In the present case, it is not the case of the Revenue that any material particular furnished by the appellant-assessee in the declaration was found to be false. Consequently, the Assessing Officer could not have re-opened the assessment by a notice under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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