MANGILAL S JAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner is an assessee under the Income-tax Act, 1961 (the "I. T. Act" for short). For the assessment year 1995-96 (accounting period ended on March 31, 1995), the appellant filed his return on March 26, 1997, declaring a total income of Rs. 2,59,030. His return was processed under Section 143(1)(a) on September 27, 1997. As it was a survey case, a notice under Section 143(2) was issued and after hearing, an order under Section 143(3) was passed on January 8, 1998. Under the said order, the total income was determined as Rs. 2,59,600. Income-tax thereon was calculated as Rs. 78,840 and after deducting Rs. 1,193 as rebate under Section 88, the tax payable was arrived at as Rs. 77,647. A sum of Rs. 77,181 was added as interest under Sections 234A, 234B and 234C. Thus, the total amount payable was shown as Rs. 1,54,828. Feeling aggrieved by the said order of assessment, the petitioner filed a revision petition under Section 264 of the Act on April 23, 1998.

(2.) THE Kar Vivad Samadhan Scheme, 1998 (the "KVS Scheme" for short), was brought into force on September 1, 1998, as per Chapter IV of the Finance (No. 2) Act, 1998 ("the Finance Act" for short). THE appellant filed a declaration under the said scheme, under Section 89 of the said Act Form No. 1A. In the said declaration filed on January 27, 1999, he showed the computation of tax payable under the said scheme as follows : <FRM>JUDGEMENT_31_ITR257_2002Html1.htm</FRM>

(3.) THE appellant through his chartered accountant, sent a representation dated April 6, 1999, reiterating that the amount payable was only Rs. 8,886 and requested the first respondent to rectify the certificate dated February 19, 1999. THE first respondent, by letter dated April 15, 1999, rejected the said representation stating that there was no error in the certificate. Feeling aggrieved, the appellant approached this court by filing W. P. No. 19182/1999 for the following reliefs :