SHREEJI SHROFF Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY filing the present petition, the petitioner challenges the orders dated 22. 07. 99 and 03. 11. 99 passed by the respondent, annexures 'b' and 'e' respectively.

(2.) THE petitioner is a partnership firm. For A. Y. 1994-95, certain additions were made to the returned income of the petitioner, which is the subject matter of an appeal before the Income Tax Appellate Tribunal, Ahmedabad. The said appeal is pending. It is submitted that in the meanwhile, Kar Vivad Samadhan Scheme, 1998 [kvss] was formulated and under the KVSS, every assessee desirous of taking advantage of KVSS was required to make a declaration in respect of tax arrears and a determination of the amount payable under KVSS and on payment of such determined tax, the disputes between the department and the assessee were regarded as settled. The petitioner filed a declaration under KVSS on 31. 12. 98. In pursuance thereof, the respondent, vide order dated 27. 01. 99, which was served on the petitioner on 04. 02. 99, determined the amount of tax arrears payable by the petitioner to the extent of Rs. 17,410-00 insofar as the quantum appeal is concerned. It is submitted that on 03. 03. 99, the petitioner paid all the tax arrears as determined by the respondent and requested the respondent to issue certificate under KVSS. However, vide order dated 22. 07. 99 [annexure 'b'], the respondent informed the petitioner that as the petitioner did not pay the sum determined under KVSS within 30 days from the date of the order, the payment made is beyond the prescribed time limit and cannot be treated as payment under KVSS. The representations made by the petitioner have also been rejected. Thus, the petitioner was denied the benefit under the KVSS. The petitioner has challenged the said orders by way of the present petition.

(3.) LEARNED senior advocate Mr. S. N. Soparkar placed reliance on section 90 (2) of KVSS, which prescribes time limit, and the same is reproduced hereinbelow: